Christmas presents for tenants?

General Landlording & Rental Properties
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Christmas presents for tenants?

Paul HormannPro Member
Investor · Falls Church, VA · Member since 2015 · 38 posts · 11 votes

I have a 7 unit property and wanted to get gift cards for my tenants for the restaurant across the street (don't worry, I would say "Happy Holidays" in the card).  Anyone see an issue with this?  Also, I am currently in the process of evicting one of the tenants - should/can I exclude him from getting a gift card?

I'd be curious if anyone else does something similar to this.

Thanks,

Paul

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Mike F.
Investor · Denver, CO · Member since 2015 · 570 posts · 521 votes
10y

Gift cards for tenants? Hell no. Thanks for paying the rent on time, you mean like you're supposed to? No. Not in a million years. Call me there is something wrong in the place and we will fix it immediately, but other than that, pay your rent on time like you're supposed to and merry christmas.

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  • Account Closed
    Real Estate Investor / Joint Venture Specialist. · Crown Point , IN · Member since 2014 · 1k+ posts · 238 votes
    10y

    We have done this and it helps. 

    Building a relationship is huge cause form that comes trust and honesty. 

    I highly recommend this! 

    1Reply
  • Josh Christians
    Siloam Springs, AR · Member since 2010 · 5 posts · 0 votes
    10y

    I, too gave gift cards. And let them know I appreciate them taking care of our property and paying on time. I think gifts go a long way! 

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    I always send a gift card usually from a chain restaurant. I get one or two tenants that actually call and say thanks...the rest usually no response. That is OK. I have a great relationship with most of them and $25 investment isn't going to make a big difference to the bottom line. Merry Christmas!

    0Reply
  • Sarnen Steinbarth
    Commercial Real Estate Broker · Fort Collins, CO · Member since 2015 · 308 posts · 151 votes
    10y

    We've also done similar things.

    I've always been happy I did.

    1Reply
  • Paul HormannPro Member
    OP
    Investor · Falls Church, VA · Member since 2015 · 38 posts · 11 votes
    10y

    Thanks for the responses!  But what would you do for a tenant that is not in good standing (i.e. behind on rent/in the eviction process)?  I'm sure they'll find out that I gave gift cards to the other tenants but not to them...

    0Reply
  • Bryan N.
    Investor · Hampton Roads, VA · Member since 2014 · 1k+ posts · 418 votes
    10y

    Evict them and like the Seinfeld episode said.  No soup for you!

    1Reply
  • JERMAINE LUCAS
    Investor · Woodbridge, Virginia, landlord · Member since 2010 · 98 posts · 21 votes
    10y

    Jermaine here

    we do gift cards but only to those tenants that had on time payments all year, and the card always said "thanks for your on time payments all year"

    Bet you,you have more on time payments next year.

    2Reply
  • Adam SmithPro Member
    Civil Engineer · Firestone, CO · Member since 2013 · 85 posts · 21 votes
    10y

    @Paul Hormann We only have one rental SFR but we give them a gift card for Christmas and let them know that we appreciate the on-time payments and taking care of the house as their own.

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  • Robert Nason
    Lowell, MA · Member since 2014 · 260 posts · 99 votes
    10y
    I am facing the same issue! I have 24 units and I'm also in the process of evicting one of the tenants and I don't want to look like a jerk by not extending the same courtesy to them, but they've just been such horrible people and abusive to my building I don't feel like giving them a damn thing. The rest of my tenants have been a joy to deal with. I've decided to stick to my feelings and keep them out of the loop. It's no secret to them or me that it is a bad relationship that will soon be over.
    3Reply
  • Mike F.
    Investor · Denver, CO · Member since 2015 · 570 posts · 521 votes
    10y

    Gift cards for tenants? Hell no. Thanks for paying the rent on time, you mean like you're supposed to? No. Not in a million years. Call me there is something wrong in the place and we will fix it immediately, but other than that, pay your rent on time like you're supposed to and merry christmas.

    4Reply
  • Carson Sweezy
    Rental Property Investor · Fairfax, VA · Member since 2014 · 328 posts · 101 votes
    10y

    @Paul Hormann I am a believer in keeping people that can make you unhappy happy. A tenant is sort of like an employee, they are making you money...

    My landlord in college used to always give us gift cards for christmas, we appreciated them that much more, it made us feel welcomed. 

    I would not give the problem tenant a gift card, and hope that they do find out about. 

    2Reply
  • Eric Mauricio
    Fargo, ND · Member since 2014 · 98 posts · 26 votes
    10y
    0Reply
  • Paul HormannPro Member
    OP
    Investor · Falls Church, VA · Member since 2015 · 38 posts · 11 votes
    10y

    Great advice everyone, thank you! And Merry Christmas!

    0Reply
  • Patrick L.
    Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    10y
    Originally posted by @Bryan N.:

    Evict them and like the Seinfeld episode said.  No soup for you!

    Unfortunately that is part of this business.   My gift to this tenant was pushing the lockout back to Monday.    My crew is off Thursday-Sunday so taking the house back right before Christmas wasn't going to do me any good.  

    Why in the world would people even consider giving a tenant that is not in good standing any type of gift??

    2Reply
  • Jim Adrian
    Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
    10y

    I gave a card and some candy but I only have one rental house.  I did spend $50 on them when they had there baby. Long story but extremely high risk pregnancy.

    2Reply
  • James Paine
    San Diego, CA · Member since 2015 · 136 posts · 62 votes
    10y

    We don't do Christmas presents but usually don't charge a late fee in January if they are a few days late with rent. 

    We DO however do Thanksgiving.  I send out a letter thanking them for taking care of my property and making it their home.  I also include my favorite motivational or self-help book for the year.  Finally I give them a gift card for $50 to a supermarket like Vons.  We do this the week before Thanksgiving.  Especially on our lower end rentals I think we really impact peoples lives.  I don't know what its like to not have a Thanksgiving meal and if you are lucky enough to rent from me, you and your children won't either. 

    1Reply
  • Norm BessettePro Member
    Investor · Humarock, MA · Member since 2015 · 14 posts · 4 votes
    10y

    We do  gift cards for our tenants as well.  With 44 units it gets a little pricey but if it avoid one plumbing call or one electrical call throughout the year it pays for itself.  Always difficult to directly translate to value but I think it  is worth it.

    Also agree with other responses that I would avoid late/non-payers as well as those that are pains in the back side (for me only 2 out of 44).  If they find out then good- they deserved the lump of coal.

    1Reply
  • Grant Huggins
    Real Estate Investor · Ardmore, OK · Member since 2015 · 13 posts · 7 votes
    10y

    We sent cards indicating a discount for their January rent payment...

    1Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    We only send Christmas cards, not happy holidays. We are Christians not holidayians.

    We never give free money away. I learned long ago while being a manager in corporate America that people want to earn, not be given things. Giving items may seem like you appreciate them but in reality it creates a sense of entitlement. Every year going forward you better have a gift card and it better be he same amount or more. If not you will notice a shift in attitude.

    Instead we tie good tenant behavior to a discount in rent, movie tickets or something that says "we appreciate that you are a good tenant". It avoid all the issues being discussed in the is thread - send gift cards if not paying, late all the time, not taking care of the property.

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
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    0Reply
  • Justin Peters
    Realtor · Fort Worth, TX · Member since 2015 · 21 posts · 5 votes
    10y

    @Paul Hormann

    Great idea and a great way to separate yourself as a landlord. This technique will automatically give you trust right out of the gate. 

    Keep in mind, you can only write off up to $25 worth of gift cards per tenant. 

    I don't think this would interfere with any type of RESPA SECTION 8A laws but you may want to double check to ensure you're in line with the law.

    Keep crushing it! 

    Justin Peters

    0Reply
  • Al Wilson
    Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
    10y
    Great idea. Skip the one who is being evicted. Good luck.
    0Reply
  • Roy N.Pro Member
    Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
    10y

    We have been known to give an appreciation to a tenant on the anniversary of their lease, but have chosen not to try sending gifts or cards to the correct tenants on religious holidays {we have a very diversified tenant population}.

    0Reply
  • Tami R.
    Clive, IA · Member since 2013 · 141 posts · 89 votes
    10y

    this topic has been on my mind multiple times.  I prefer not to because of the following:

    We have 60 some rentals and it would get spendy.

    They are not my employees.  I expect them to pay rent and they should expect me to provide a nice home for them and when a problem arises we take care of it

    There's times where we are very generous waiving late charges, etc... but I think about my mortgage lender for my personal home and I do not receive anything from them.

    1Reply
  • Brett McCurdy
    Real Estate Broker · Kensington, MD · Member since 2014 · 84 posts · 16 votes
    10y
    Yes! Don't listen to the other "grinches" out there saying this is a wasted expense. There are multiple reasons why I believe this MARKETING STRATEGY is effective. One person mentioned they are not employees, true, but they ARE a vital part of your overall business chain. We have done this at the firm I work at for over thirty years and it has proven very successful. To many managers fail to see the ROI on MAINTAINING great tenant relations and solely focus on their acquisition systems and not RETENTION measures. For example, we have a 22 unit apartment building where we send a check to each tenant (WHO ARE IN GOOD STANDING) at he end of the year saying happy holiday or happy new year and "thanks for being a great tenant of ____". This is a small investment to help encourage FUTURE on time and rapid payments! Other benefits include Tenants refer other tenants (because they are treated right) and those referrals are usually in good financial standing as well, tenants are not as "quick to blame the landlord" when something breaks and maintenance requests actually decrease because they have a positive image of landlord and try to fix minor repairs, it also shows throughout the company the attitude of owners and that this is not just a numbers business but a PEOPLE BUSINESS. Increasing your touches with every person in your business life cycle is never a bad idea. Treat this activity like you would any marketing activity and track the results but we have had great results. Also, we found that a check is received by tenants much better than I gift card (plus you don't pay fees on each card you purchase, that's waste).
    1Reply
  • James WilcoxBusiness Member
    Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes
    10y

    I think it is an excellent idea to give gifts from time to time. RE is a people business, so if you got to brown nose a little then that is just what you got to do. I just recently gave two tenants small coffee mugs with some candy at a duplex property we are going to acquire shortly. They are so excited about having a new landlord, even before the gifts, because of how we have already treated them. The amount of good will we have acquired from the $6 gifts ($3 per side) is well worth it IMO. Also something utilitarian like a mug shows more thought than a gift card. It also gives a subtle reminder to the tenant about your landlord expectations out of them, every time they use it. 

    REI James w/ eXp Realty54 Reviews
    WebsiteView Page
    1Reply
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