Rewarding Tenants with Points

General Landlording & Rental Properties
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Rewarding Tenants with Points

Bruce L.
NV · Member since 2012 · 144 posts · 6 votes

Hi BP!

I was wondering if anyone here has tried creative ways to get your tenants to maintain your property well and to also retain good tenants.

I was thinking about setting up a point system similar to how the credit card companies do it. After so many points, you can opt to use your points for an item or cash back.

So, I would give points throughout the year for the following:
1) Prompt rental payment.
2) Property Inspection (3-4 times a year).
3) No Complains from neighbors.
4) Lease renewal.
5) And so on, can't think of anymore, please feel free to add to this.

Items would include things like a
- $50 Gift Card (Home Depot, lol jk)
- House Cleaning service
- Coffee Machine
- 42" Flat Screen TV
- and Ca$h.

The only way to get the good items would be to be an outstanding tenant with at least 2-3 year stay.

What do you guys think?

1Reply
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Most Popular Reply

Aaron Mazzrillo
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
12y

I've read so many posts on here regarding 'bribing' tenants to be good or rewarding them for their good behavior. I have the exact opposite philosophy. I never reward or bribe my tenants. I actually do my best to never speak to them again after I rent to them. Trust me, your tenants don't want to be bothered by you.

Here is how I reward/bribe them; I charge $100 late fee. Pay the rent on time or I get rewarded with a nice big bonus. I charge a high security deposit. Leave the unit just as nice or better than when you moved in, or I pay a fully licensed & insured general contractor (not cheap!) to go in and fix the things you broke and then I pay a cleaning company to clean up your mess out of your deposit. You're never going to find me spackling a wall or cleaning up a former tenants pubes in the bathroom. And I know those two incentive programs are sufficient to keep your tenants in line.

I just don't see the point in sending them Christmas cards, movie passes, gift cards, etc. for doing what they agreed to do; pay the rent and keep the place in decent shape. When you start crossing the line of tenant-landlord relationship, you start setting yourself up for trouble. That's when the "My rent is going to be a little bit late" calls start coming in. Hard to tell your new 'friend' not to forget to add the late fee when they pay and don't mind the notice posted on the front door, we just do that to protect our rights.

This "tenants deserve rewards" way of thinking must be coming from the "every one who shows up deserves an award" generation.

5Reply
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12 Replies

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  • Bobby Beard
    Real Estate Investor · Panama City, FL · Member since 2012 · 265 posts · 58 votes
    12y

    Pretty good idea.some people like the points system. i would have a hard time keeping up with it with the limited time i have.

    0Reply
  • Marcia Maynard
    Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    12y

    I use a star system tied to rent payments. If a tenant pays rent on the first of the month or prior, they get a star in my rent register. After 12 consecutive stars they get a gift. When doing property updates, my "All Star Tenants" get first priority for improvements to their units.

    My "All Star Tenants" also are rewarded with things such as complimentary professional carpet cleaning of their traffic areas, opportunity to paint a wall or room a different color or another enhancement to their unit

    It doesn't matter whether you are age five, fifteen, thirty, or sixty.... seems everyone likes to get a star!

    1Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    I once tried a Christmas Bonus program. My plan was based on trying to get the renters to pay on time, and to actually stay in the apartment for more than 6 months. Near the end of the year, I planned to give them some money back based on their on-time payments. Well, it was no time at all before everyone was behind on their payments and the whole bonus program was shot. But I like the idea and I may try it again in the future.

    0Reply
  • Sam Thompson
    Property Manager · Cincinnati, OH · Member since 2014 · 7 posts · 1 vote
    12y

    We have a tenants rewards program where if they pay ON or before the first they get access to a portal where they can get discounts to places like local pizza places for 50% off, deals at Subway, Kroger, DVD, etc...and other coupons. It costs about $0.60 per property per month. not very expensive

    Here's a link to how it works. Automatic... Pretty cool!

    http://www.purqz.com/mrlandlord/offer/mrlandlord

    0Reply
  • Chris K.Pro Member
    Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
    12y

    I've tried giving bonuses for 12 months of ontime payments but they usually start slacking around month 4-5.

    I've also let them know that as long as they're paying on time, rent increases will be limited to every 3 years.

    0Reply
  • Robert Steele
    Investor · Lucas, TX · Member since 2010 · 620 posts · 352 votes
    12y

    Hahah. Tenant bonus program. How cute.

    They say you can catch more flies with honey than vinegar but I don't think that works with tenants.

    The only incentive I use is the tried and true method. Pay late, pay a fine. Don't pay, don't stay.

    1Reply
  • Sam Thompson
    Property Manager · Cincinnati, OH · Member since 2014 · 7 posts · 1 vote
    12y

    The tenant reward program DOESN'T work. We are tossing it March 1.

    0Reply
  • Eric Y.
    Investor · Denver, CO · Member since 2014 · 84 posts · 52 votes
    12y
    Originally posted by @Robert Steele:
    Hahah. Tenant bonus program. How cute.

    They say you can catch more flies with honey than vinegar but I don't think that works with tenants.

    The only incentive I use is the tried and true method. Pay late, pay a fine. Don't pay, don't stay.

    I'm going to have to agree with this one. I especially don't want to create more work for myself--and I doubt anyone would want to when you get more than 10 tenants. At the end of the day, a fairly priced property that has been rehabbed with responsible management should be more than enough for any tenant. That is all I wanted when I rented. That resident rewards program is pretty cool though, I might consider doing that as a welcome gift to all of my tenants anyways.

    1Reply
  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y

    I've read so many posts on here regarding 'bribing' tenants to be good or rewarding them for their good behavior. I have the exact opposite philosophy. I never reward or bribe my tenants. I actually do my best to never speak to them again after I rent to them. Trust me, your tenants don't want to be bothered by you.

    Here is how I reward/bribe them; I charge $100 late fee. Pay the rent on time or I get rewarded with a nice big bonus. I charge a high security deposit. Leave the unit just as nice or better than when you moved in, or I pay a fully licensed & insured general contractor (not cheap!) to go in and fix the things you broke and then I pay a cleaning company to clean up your mess out of your deposit. You're never going to find me spackling a wall or cleaning up a former tenants pubes in the bathroom. And I know those two incentive programs are sufficient to keep your tenants in line.

    I just don't see the point in sending them Christmas cards, movie passes, gift cards, etc. for doing what they agreed to do; pay the rent and keep the place in decent shape. When you start crossing the line of tenant-landlord relationship, you start setting yourself up for trouble. That's when the "My rent is going to be a little bit late" calls start coming in. Hard to tell your new 'friend' not to forget to add the late fee when they pay and don't mind the notice posted on the front door, we just do that to protect our rights.

    This "tenants deserve rewards" way of thinking must be coming from the "every one who shows up deserves an award" generation.

    5Reply
  • Eric Y.
    Investor · Denver, CO · Member since 2014 · 84 posts · 52 votes
    12y
    Originally posted by @Aaron Mazzrillo:

    This "tenants deserve rewards" way of thinking must be coming from the "every one who shows up deserves an award" generation.

    Lol. C'mon, I believe that is still my generation. Couldn't agree more. Eventually everyone will get burned by a sheisty tenant and drop all those massive time consuming things. If they've only got a few very long-term tenants, maybe they don't mind being a little closer to them.

    I personally just don't have the time or want for that. Do as our contract states--just like I will be there 24/7 when something breaks.

    0Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    12y

    I generally don't like rewarding for things they should do anyway. The only reward I was thinking of this year was having a tenant of the month in winter and rewarding them with a garage parking space for the month. Given the winter we have had I probably should have but we didn't get the garage floor raked up well enough. think it is a good idea to do this? limiting it pulling names from ontime tenants.

    0Reply
  • Account Closed
    Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
    12y

    I agree with my namesake @Robert Steele the lease is a contract that clearly states they are to do certain things and act as mature responsible adults. I have a moral and ethical issue with rewarding people for doing exactly what they agreed to and are supposed to do.

    Late Fees are there for a reason. I enforce them immediately. I have evicted a tenant for failure to pay a late fee. They then had to pay damages, court costs, attorney costs, etc.

    0Reply
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