Xmas/Holiday Bonuses/Gifts - Who do YOU give it to?

Xmas/Holiday Bonuses/Gifts - Who do YOU give it to?

J. MartinPro Member
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes

A lot of people give out bonuses around the holidays to people that wouldn't normally get tips/bonuses throughout the year. Of course, many send out the picture xmas postcard too, but that's a little different.. Who do you give gifts or bonuses to in the RE world during the holidays? My plans for this year so far..

Handyman - $200-300.
He probably expects nothing because he didn't get one with last employer.. He works for me part-time, handles all my units, makes my life easy, and will be moving into my unit in exchange for work in early 2014. (Hmmm.. maybe I should give him more)

Backup call-taker when on vacation - $50 gift or very nice dinner.
He is a friend who is my backup call-taker for my tenants when I am on vacation, in case my tenants can't get ahold of my handyman. Never had to get a call yet (w/ 1.5mo absence). But important to me. He knows real estate/landlording and would be able to handle any issue or call someone who could take care of it, without getting ripped off.

Investor/Partner - Some bitcoin? Nice dinner? Something real-estate related? This is a passive investor who helped get a deal done with their JV support that I'd like to give a little gift to..

Tenants - the good ones - home-made cookies! Was going to buy some candy, but thinking about baking some cookies and giving them out, since I want some yummy cookies anyway, and can give some to co-workers. I like to do nice little things for my tenants.

Garbage Man - $20 or a 12-pack.
Maybe this is just because my dad used to work for a garbage company. He says bad to give out alcohol to drivers though.. This inexpensive gift may pay dividends later when you or your tenants have to pile your bins a mile high to get rid of waste/debris or ignore that block of cement in your trash can..

Apparently, these are the most important people in my real estate life.. I'm trying to think of who else I rely on..

Who in RE do you give gifts/bonuses to during the holidays, and how much?

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Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
12y
Nicole Williamson If someone makes your life easy, does great work and potentially saves you thousands of dollars throughout the year, what's $300? Plus the good will it'll buy you throughout the year is immeasurable! Regarding giving tenants homemade cookies, unless it's a friend or family member, homemade cookies (or anything food-wise) skeeve me out!!! I'd rather get a $25 gift card to a local coffee shop or restaurant personally!
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  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    12y

    I personally think that's a bit much to give your handy man, but that's just me. And he's going to get reduced rent for working for you? I think you're giving plenty already.

    I give my contractor a tip after each job depending on the size of the job.

    I have a handyman that I sent a $50 gift card to because he's done a lot of repairs here and there and check ups of furnances without even charging me. So I felt $50 was well deserved to show that his good deeds do not go unnoticed or unappreciated.

    I sent a greeting card to my banker and property management company that goes to rent court for me and included a $10 Starbucks card and very nice thank you note.

    My tenants all got greeting cards.

  • Real Estate Investor · soldotna, AK · Member since 2011 · 69 posts · 36 votes
    12y

    We gave our contractor specialist expert handy dude $500. He does us an exceptional job. Our property manager got a $100 gift certificate to a nice local restaurant. We did not do anything for tennants. Having regrets but we enjoy our anonymity.

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    12y
    Nicole Williamson If someone makes your life easy, does great work and potentially saves you thousands of dollars throughout the year, what's $300? Plus the good will it'll buy you throughout the year is immeasurable! Regarding giving tenants homemade cookies, unless it's a friend or family member, homemade cookies (or anything food-wise) skeeve me out!!! I'd rather get a $25 gift card to a local coffee shop or restaurant personally!
  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    12y

    I'm not saying it's bad, but good deeds can sometimes bite you. Maybe I'm jaded. I feel like giving that much sets up an expectation. What if one year (or a few years), your cash flow is really low and you can't afford several hundred dollar gifts? He will be expecting it and really disappointed when it doesn't come along...perhaps even relied on it. Then he figures he's not going to work as hard for you, etc etc. Then you're looking for a new guy you can trust to hire. And he has to actually save you thousands, not potentially.

    I swear I have Christmas spirit! ;-)

  • REALTOR® · Bastrop, TX · Member since 2013 · 324 posts · 191 votes
    12y
    J Martin I would add your Realtor, wholesaler, or anyone you utilize to help you find and acquire properties. If you're friendly with them and they help watch your units, maybe the neighbors next door to your rentals. I like the idea of your banker or whomever you use for financing your deals. Anyone else throughout the year who provided you solid advice, gave you a recommendation, or helped save you a good amount of money on a deal; just to let them know it meant something to you and you didn't forget. Could be good for similar actions in the future.
  • Accountant · Philadelphia, PA · Member since 2013 · 303 posts · 210 votes
    12y

    I remember in college my landlord got us a 30-pack for X-mas and we were pumped. Still recommend him to this day.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    12y
    Originally posted by @Patrick Connell:

    ...

    Anyone else throughout the year who provided you solid advice, gave you a recommendation, or helped save you a good amount of money on a deal; just to let them know it meant something to you and you didn't forget. Could be good for similar actions in the future.

    Well Patrick, I guess that the BP collective is somewhat deserving, don't you think?

  • REALTOR® · Bastrop, TX · Member since 2013 · 324 posts · 191 votes
    12y
    Steve Babiak checks in the mail :-)
  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Levi F. and @Troy Sheets , I'm with both of you. It's hard to find someone good to make your life easy, and this guy has it in spades.. Trustworthy, good.. Can't say enough good things.

    After taking that into consideration, I decided I'm going to give him $500.. It was a good year, and he's worth it.. On top of that, he has done more than a week of work for free, which he really deserves anyway..

  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Nicole A. , I think you have a good point regarding how variable profit might be from year to year.. While I decided to give $500 after thinking about what he did for me this year, and even worked more than that for free because he is almost TOO nice, I'm going to make sure I tell him that this is based on how easy he made my life AND how well I did in 2013. So that might not be around every year.. It's true. It's just like a business. Sometimes there's bonuses when times are good. But those may not be around in times of belt-tightening. I'm going to make sure I tell him this when I give him his bonus..

  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Patrick Connell ,

    I don't use a realtor (negotiate my own deals with listing agent), and haven't engaged with neighbors to look after properties yet.. But thinking that's a good idea.. Wonder how much I'll have to bribe them with..

    Now that you mention it, I will at least send something to my loan broker, because he does bust @ss to get deals closed when we get to crunch time..

  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Account Closed ,

    The cookies are the replacement for the 30-pack in this instance, since they are families instead of college students.. (probably still wouldn't do the beer for tenants due to liability issues nowadays.. sucks!)

    @Steve Babiak , I give gifts back to BP almost each and every day by staying active on the forums ;) But I'd be happy to give out a little slice of some bitcoin as a gift to anyone on this post who'd like some, to continue on the holiday spirit...

    Go on blockchain.info and click on wallet to sign up for a bitcoin wallet easily..

  • Involved In Real Estate · West Palm Beach, FL · Member since 2008 · 104 posts · 17 votes
    12y

    I like to use Christmas " tips" to essential personel

    that we don't pay all year but regularly provide service!

    Garbage Truck Drivers,Security Guards,Porters,Landscape

    crew. and the like. Does'nt have to be all that much. Its

    better than a "thank-you" and recognition !

    Those around you should be getting paid well enough not

    to require further motivation. !

  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    Thanks for hopping in @Robert Brubaker . I saw you on one of my other posts too.. I think that's a good point.. but now you're making me wonder if I pay my handyman enough! I still think it's nice to give him a little extra for the holidays though.. I don't have most of the other service people you mentioned, but garbage man for sure..

    I'm curious about some others on the site, maybe @Al Williamson ? Tips/gifts? To who? Heart-felt note or something else?

  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    Way earlier this year I stumbled across a fairly rough sorta triplex for sale. It is very tiny and very rough. I had been looking for a flip with my handyman due to problems finding reasonably inexpensive contractors, so he was with me when I saw it and stopped to look at it. He has been very interested in getting his own rental properties, so I bought it and formed a company with the 2 of us as shareholders. I furnished the down payment and arranged the financing, and he is responsible for everything else. He fixes things, paints installs carpet, screens new tenants, collects money, pays taxes and insurance, etc. After I get repaid for my down payment we will split all income 50% each. He learns about managing rentals and I have 1/2 interest in a headache free rental unit. It only grosses $650 a month for all 3 units but it will be paid off in 10 years. Knowing him he will begin fixing them up.

    I may not seem as nice as it appears because he is 20 years younger than me and I think this is an easy way of training him to manage properties if I need a manager later on.

    Oh yea so I don't seem too mean I also gave popcorn balls to the kids of all my renters.

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    12y

    wow, all of you are way ahead of me. Inspiring topic. I will allow myself to receive the knowledge. Better yet, I'm going to leave my main helper $50.

  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Jerry W. , that's an interesting deal structure..

    I've been looking at different ways to finance rehabs, including with handyman/contractor work contributions, so I like your creativity. Grossing $650/mo on a triplex?!? I guess I've just been in CA too long! lol Only back-yard sheds rent for that much in the Bay! I can really appreciate the value of having/training good help. I've been easing my handyman into collecting rents for me and some other minor duties, but hoping to have him take over also.

    I also like your quote: "Don't let others decide your attitude."
    Keep it up!

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    12y

    I gave my helper $60. It really touched him. Thank you guys for the inspiration. So happy I followed your wise ways.

  • J. MartinPro Member
    OP
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    12y

    @Al Williamson You've reaffirmed things for me and given me inspiration to do positive things also. So thanks for all your help too! I had to bump mine up too after thinking about it for a while.. Have a great 2014!

    And keep inspiring us to be better people, in addition to better landlords!!

  • Rental Property Investor · Northville, MI · Member since 2013 · 264 posts · 183 votes
    11y

    This year I'm giving $50 dinner gift cards each to:

    - my main handyman, who has helped renovate 8 units this year, plus bailed me out when a tenant's fridge went out when I was on vacation and the spare was in a storage unit.

    - the HVAC guy, who I count on to fix my tenants' furnaces and A/C the day they go out, and has very reasonable pricing

    - my plumber, who has unclogged many a drain, changed hot water heaters post haste, and changed garbage disposals and faucets when needed, so I don't have to.

    - my painter/drywall guy/cleaner husband/wife team, who charge me the same whether it takes 1, 2, or 3 coats of paint to cover the nasty colors a former landlord allowed

    - the floor refinishing guy, who has done a good job on 8 or 9 floors this year.  I'm not a big client, but he fits me in when I need the work done.

    As a small-scale landlord, I don't have full-time staff, but count on these people to keep 20 units running smoothly, and consider $50 reasonable to help keep me on their list of customers to prioritize.  

    Does anyone know if we can deduct the full amount, or only $25 each card?

  • Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
    11y

    Homemade candy, banana bread, and pumpkin bread go to the following:

    Tenants, Realtor, local bank where all the tellers and most of the office staff knows me, post office, mail men, UPS and FedEx drivers, cleaning lady and her son that do make readies, I will probably take some smaller candy bags to key people a Lowes that I deal with a lot.  Oh and the city office staff for the towns I have property in their limits.  It is good to have small town officials having happy memories of you.

    Tenants will also get some grassfed steaks and pasture raised pork chops and sausage.

  • Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
    11y
    Originally posted by @Ken P.:

    This year I'm giving $50 dinner gift cards each to:

    -- snip --

    As a small-scale landlord, I don't have full-time staff, but count on these people to keep 20 units running smoothly, and consider $50 reasonable to help keep me on their list of customers to prioritize.  

    Does anyone know if we can deduct the full amount, or only $25 each card?

     You can only deduct $25 per each person/household.

  • Rental Property Investor · Northville, MI · Member since 2013 · 264 posts · 183 votes
    11y

    @Paul Ewing Thanks for confirming the $25 limit.  

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