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.
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.
Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
10y
I believe in exchanging gifts with my tenants every month. I provide affordable, safe, and fully functioning housing, and they give me rent payment in exchange. I have to believe the tenant and I love this because we do it every month :) The ones that don't give me gift every month in exchange get taken off my list.
Rental Property Investor · San Jose, CA · Member since 2013 · 486 posts · 170 votes
10y
I give my tenants and my tenant's neighbors See's candy. It's also a good opportunity to meet with your neighbors, extend thanks for them being good members of the community, and share with them some Christmas cheer.
As far as the bad neighbors, I haven't ran into this issue, but if I did have bad neighbors, I would probably give them coal or a mafia style dead fish.
We have 5 tenants and I usually do some sort of card during the holidays and sometimes a small gift. We also do a welcome basket at move in. We always keep it under $25 total, but this is a small price to pay for someone who is hopefully going to take care of my property, pay me over $14,000 for the year and ultimately pay off my mortgage in the long run. This $25 gift not only makes me feel great, but its a small price to pay to have an asset one day that is worth over $150,000.
Plus it's the old law of reciprocity. Give someone something and they will feel like they kind of owe you something, even if it's not letting the dog pee on the floor.
Buy and Hold · Colorado Springs, CO · Member since 2015 · 84 posts · 34 votes
10y
PS. I would never give a bad tenant a gift. If I could I would turn the power, water, cable and internet off to hopefully rid them of the property sooner.
Property Manager · Auburn, WA · Member since 2015 · 3 posts · 0 votes
10y
As someone that does property management and does rent roll analysis basically daily, giving an incentive to residents is a good thing, it fosters a positive feeling from your residents that they are appreciated and it fosters a positive cash flow for you on time. You don't have to spend a $100 even $50 each, its the thought that counts. If you have many past due payments in a multifamily for example, start a monthly on time payment drawing. have a "fabulous" prize-don't divulge it to the residents as somethings are not always available / accessable. Have it be a surprise or a small gift basket full of bulk purchased items you can break up into many baskets or donated coupons from local vendors. I don't know how gift cards fair with tax write offs, but a $5 house plant and a nice card for Christmas is always a winner. Or if they win the monthly prize a $20 max ( including tax) prize is a good incentive, including the "thank you for being a great resident / tenant" is also proper to include.
Christmas is be about caring / sharing and giving back to the people that basically give you your income. That should never be forgotten who puts the food on our tables. Its our residents, no matter who they are. If they are in eviction, they get overlooked as they are moving anyway and it could be construed as a conflict of interest.
Don't let fear stop you from doing nice things for your tenants, check with legal if you are unsure about details. Best of luck!
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
10y
Worried about offending a tenant who is currently being evicted by not giving him a gift card? Gotta separate those types of thoughts and actions from your business. Being a good person is a goal we all should strive for but have they are stealing from you. Tenants will eat you alive if you let them.
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...
Two options: send them one. Personally, I like that tactic. It shows you harbor no ill will. Who knows, it might change their perspective of landlords!
Investor · Reading, PA · Member since 2014 · 3 posts · 0 votes
10y
I agree with this if they are good tenant and never late I always pay for a dinner. $25.00 gift card to Olive Garden or Applebees which are local to them. It's a way to show your appreciation.
I agree with this if they are good tenant and never late I always pay for a dinner. $25.00 gift card to Olive Garden or Applebees which are local to them. It's a way to show your appreciation.
James,
We do this, but give gift cards to local businesses in the neighbourhood: restaurants, pilates/yoga studios, cafés, etc. We also give gift certificates/coupons to these businesses as part of our "move-in" package we give each tenant.
Investor · Peachtree Corners, GA · Member since 2012 · 131 posts · 83 votes
10y
I always do this... For the good tenants. I go to Honey Baked Ham and pick them up a small meal for the family. I spend like $40 each house and hand deliver it. I've had some tenants for 5-7 years now. Yes - It's a business in the end but the way to make money in rentals is to keep tenants happy, paying and in your house. For that to happen they have to respect you and see you as a person... Not a bank. I'll spend $40 any day for that.
Investor · Foley, AL · Member since 2015 · 47 posts · 6 votes
10y
I went with a nice gift basket from Harry and Davids. I have great tenants right now and hopefully the gift basket will seal the deal for another years lease.
But I agree once you have scaled your real estate business up this could get too expensive.
Investor · Denver, CO · Member since 2015 · 570 posts · 521 votes
10y
Our average tenant's occupancy is 5 years. Never gave a single one a present. We don't need to incentivize or buy tenants love, this is a business, we provide a product that our customers perceive as a good value and they purchase it month after month.
The day you need to start giving your tenants presents is the day you need to ask yourself why? Then reconsider your business model and product (rental unit) quality. Is your product inferior in the market place? Is the perceived value not high enough with your customers (renter)?
Your product should be perceived positively by your tenant, meaning they get more than what they are paying for every month. It should be perceived so positively by them that a gift card at Christmas is insignificant to the value they receive living in your property every day.
If a gift card makes a difference to your tenants you've got a problem with the perception of your product, and a gift card isn't going to fix that. And again our average tenant's occupancy is 5 years, so that's evidence enough that what matters is the product. By-the-way we also have a zero grace period. Have never given a tenant any grace period with rent. We treat tenants like responsible adults and allow them to live up to our expectations. Rental is a contract, start holding up your end of the contract and you can demand your tenant holds up there end which is paying their rent on time. This is a business, gift cards are marketing, you market to gain new customers, once your customer is buying your product it's a waste of money to keep marketing to them, they are already buying what you are selling.
And I hope nobody really believes a marginal tenant will change his stripes over a gift card. There is a fine line between being a mark, a sucker, when a tenant starts getting the idea you need them more than they need you, that's the beginning of most of your problems with that tenant.
Here is a gift card, will you please pay the rent on time for the rest of the year? No? What if I give you two? This is a scary thought to see so many people treating tenants like friends and family instead of like customers.
West Jordan, UT · Member since 2015 · 20 posts · 14 votes
10y
I typically will give my tenants a Christmas gift by asking them if they need or want something small done at the property. For example, I will email them and wish them a Merry Christmas and offer to do something nice for the property like paint an accent wall, install a new microwave, tune up the furnace, paint the front door, etc. I pick up the benefit of improving the property, the year-end tax write-off, and the tenants feel they're appreciated that I listened to their needs and addressed them. In reality, I realize all the benefits. It's great for the tenant and me.
Giftcards are simple, fast, and can be an advertising expense if tracked properly.
Happy New Year!
*Disclaimer: Not a CPA. More of a utilitarian egoist.