Real Estate Investor · Springfield, PA · Member since 2008 · 9 posts · 5 votes
Do any of you give Christmas gifts to tenants?
If they are "good" tenants, I'll hand deliver a gift card from the local grocery chain. They can use it for gasoline or groceries. Depending on the tenant, the denomination is between $25-$50.
For me, this accomplishes a couple of things.
1. General goodwill. Who would want to screw a nice guy like me?
2. I get to see the house/unit unannounced.
3. I get 20 cents off of 30 gallons of gas for every $50 spent on these cards!
4. In the overall scheme of things, I think it's a small price to pay.
Now for a tiny operation like mine, this type of deal is feasible. I put these gifts into Christmas cards and go door knocking. They are always well received. A few of the old timer residents will hand me some cookies or a re-gifted bottle of booze as well.
I think there's still something to be said for interpersonal relationships, especially around the holidays. That said, all lease rules are always enforced!
Do you guys do anything like this for your tenants?
Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
16y
I do the gift thing but only with TWO tenants. They are subsidized and have lived in my place for a long time. These are the two that maintain their apartments immaculately, fix things on their own without asking me, and are my eyes and ears all year long calling me when they see wrong doing going on............they treat my property with respect and look out for me like I was their friend, not their landlord.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
17y
I take them a big tin with different flavors of popcorn and a box of chocolates. Both can be purchased at Wal mart or dollar store. I do give my mgmt and handyman significantly more. They are the key to bottom line, imo.
Loveland, CO · Member since 2008 · 1k+ posts · 123 votes
17y
I never thought of doing that when I was landlording. I probably wouldn't have done it anyway.
Two things I used to always do was show them a sample of which size nail or staple (preferred) they were allowed to use if they hung Christmas lights on the exterior. And that any larger size would result in an AUTOMATIC DEDUCTION from their security deposit of $10.00 per hole. I also pointed out that one nail/staple every 3-4 feet was sufficient, not every one foot.
Another thing I would do was give them a second letter reminding them that THEY were responsible for SECURING THE WATER SYSTEM AGAINST FREEZING, during cold weather. This was in TX where the houses are not built for freezing weather, many people return to their homes in the north, or south over the holidays, and freezes are not uncommon.
I always considered it a business relationship. I also didn't give presents to the checkout lady at the grocery, the mailman or the guy who throws my paper on my driveway.
Now, my customers always got a nice HOMEMADE reminder from me.
Real Estate Consultant · Somerville, MA · Member since 2008 · 339 posts · 52 votes
17y
I stopped giving gifts. You give gifts to friends, not business partners. I stay with and refer business partners not because they gave you a box of chocolates but because they believe in your service. They like having you as a landlord...not as a "friend" but as a landlord.
If you fix maintenance problems quickly, give them payment options they want (credit card, auto recurring payments), you treat them with dignity, and you check in to see that they're getting what they want out of the property, they'll stay. As long as you're charging market rents and not screwing them, that's your business proposition.
It may not seem like much money but $25 * 10 tenants equals one dishwasher you could have replaced...5 screen doors...6 months of water...you get the idea.
I hope I don't sound too cold, but I've never gotten a free $25 box of chocolates from the Ford Motor Company for buying their car...and if I did, it wouldn't make the slightest impact on my next car purchase. Homes and cars are complex purchases that weigh heavy on buyers...they're not influence significantly by a gift card to the grocery store.
Real Estate Investor · Harrisburg, PA · Member since 2008 · 716 posts · 41 votes
17y
This is a very interesting thread. Thanks to all for providing thoughts.
We have considered sending Christmas Cards for the last few years, but have not yet done so (and do not have it in the budget for this year).
We are up to 30 units now, so even a $20 gift card plus travel and time OR shipping is $650 plus.
Cards alone with stamps is not anywhere near as expensive, maybe $50 - but the time investment should be considered.
We have been pondering the benefits of such actions, other than making us feel good.
In line with the thinking of some others who have already posted - we spent almost $100k this year in upgrades to our properties: roofs, steps, porches, total rehabs, outside painting, new entry doors, new heating systems (9 units), new trash cans. Now, granted, some of these things were to make our managment easier, but in every case the tenants benefited in some way.
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
17y
In my experience, NO GOOD DEED GOES UNPUNISHED when it comes to tenants.
I'm certainly not against giving tenants gifts if that is what a landlord wants to do. However, I just don't think it does any good. Will a tenant decide not to suddenly move out to be with her new shackup boyfriend de jour just because you give her a box of chocolates? Will a tenant who loses his job keep paying the rent because you've given him a $25 gift card?
Real Estate Investor · Member since 2008 · 340 posts · 34 votes
17y
We give NO gifts to any tenants, with the exception of one tenant and her sister in one of our Chicago properties. And. the only reason for that tenant is to show our gratitude for their incredible patience from day one as we troubleshooted their unit, which had gremlins all over the place.
On the hand, we reward our team and contractors with gifts and a year-end dinner. We probably spend more than we should, but they are the ones that helped us build our company and they continue to foster it's growth. No thank you for them, is to much.
Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
17y
I've tried gifts but it didn't amount to squat, although I have one tenant I bring over free fast-food coupons from the newspaper when I go by to collect rent. Costs me nothing but she's pleased.
Now I do like others have mentioned and keep the property in excellent condition. Since that's above and beyond what many other LLs do locally I have the pleasure of knowing they'll miss the hell out of me if I evict them.
I learned long ago not to expect any gratitude from tenants.
I do repairs the same day that I'm called, and I try to do one upgrade to each property once a year. But no Christmas presents.
No Cristmas cards, either. Not for anybody since my family belongs to a different religion.
Every now and again, I'll have a tenant who sends me a Christmas card. Most of them don't.
I don't like to receive gifts from anyone but close friends and family, because I feel obligated to give a gift in return. But tenants aren't burdoned with the need for that social nicety.
Still, I don't want to participate in the holiday gift-giving mania. Crikey, you could spend half your year's income buying a gift for every one who crosses your path during the year.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Originally posted by MikeOH:
NO GOOD DEED GOES UNPUNISHED in the rental business!!!
I did a good deed this week. Now I'm faced with a tenant who things she's owed a premium unit after trashing a lesser unit. 6' red stain on the living room carpet and she tries to tell me "Well, I don't know how old those carpets are." :roll: BTW - this stain is a lighter pink because she borrowed my $200 carpet steamer I lent to her as a good deed. It's now destroyed and I had to buy a new one. Yet another good deed..... Thus the look on my face in my new avatar.
Christmas is a time for family. Spend your money on your family and get your mind in your family and out of your tenants. It's ok to spend some money on the people who really make you money. Tenants don't make you money - not even at great returns. Tenants sustain the property and the landlording business and bring you liabilities - not money. You make your money, your bird dogs who bring you good deals make you money, your realtors who bring you good deals make you money, your end buyers make you money, your accountant who prepares your taxes properly makes you money by nature of saving it, etc.... you get the point. You see who really makes you money in this business. Tenants do not make money. They are rent paying/business sustaining units of liability that must be managed.
Real Estate Investor · Memphis, TN · Member since 2009 · 31 posts · 10 votes
16y
I HAD to give Tim a +1 vote on his post for what he said and also for his avatar pic.
My wife and I are gearing up to simultaneously build capital and start buying rental property and the thought of minor "good deeds" for tenants during the holidays had crossed my mind. Posts like Tim's put an interesting perspective on the topic from a seasoned investor. I appreciate all the input on this topic!
Like many questions here, there is no one-size-fits-all answer. In my lower end blue-collar neighborhood rentals I agree with Mike. Don't expect a return on your gift.
In My local, and higher end rental, I do much more to maintain a friendly relationship. Gift cards only help foster trust if you have quality people. We have had an excellent track record.
I was told once that Doctors who people "feel like they trust" have many fewer malpractice suits filed against them. Worth a $50 gamble on good cheer to me!
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Originally posted by Brad Mccarter:
In My local, and higher end rental, I do much more to maintain a friendly relationship.
This may be true. I don't deal in "high end" per se so I don't know. I simply haven't found high end neighborhoods with sustainable rent for the purchase price unless you put a ton of cash down which is not really increasing the rate of return so much as buying into the opportunity to landlord in higher end neighborhoods. Perhaps higher end rental people have value beyond their position as tenant that justifies networking with them. I can imagine if one were an attorney, accountant or some other professional it would be a good idea to network with them and I could see a justification for gift giving there.
Property Manager · Passaic, NJ · Member since 2008 · 369 posts · 83 votes
16y
I do the gift thing but only with TWO tenants. They are subsidized and have lived in my place for a long time. These are the two that maintain their apartments immaculately, fix things on their own without asking me, and are my eyes and ears all year long calling me when they see wrong doing going on............they treat my property with respect and look out for me like I was their friend, not their landlord.
Real Estate Investor · Castle Rock / Ft. Carson, CO · Member since 2008 · 111 posts · 9 votes
16y
Great topic. I still have yet to purchase my first property, but I have often wondered about this topic for when I do have tenants. I think I will play it on a case by case basis. It will take time to learn which tenants deserve a little something extra, and which do not. Just my thoughts.
Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
16y
Interesting thread. As for me, I not only card all tenants with a non-religious holiday card, but gift a small (5#) turkey or ham for the best tenants. Emphasis on best. Ones that fit Ingrid's or H Simpson's descriptions. Gifting less than $10 at Christmas for low maintenance, long term tenants is a small cost. Only one or two tenants out of ten, those who over time make you the most money, would earn such a thanks.
I also enjoy telling those turkeys that whine about not getting a turkey, why they didn't get a turkey. :mrgreen:
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
16y
i thought about giving gifts to tenants, but i decided it was better to give gifts to the people that save me money...my insurance agent saved me a ton of money this year, and my banker has never charged me for checks or accounts(business or personal)..to me, a nice gift card for her to a restaurant would be more than fair since business checks alone are expensive
Investor · the desert !, CA · Member since 2008 · 78 posts · 9 votes
16y
i am giving a $50 target card to my best tennant this year they keep the house spotless and pay on time,,i think it goes to keping a friendly relationship
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
For those who are considering gift giving, I suggest that you do it selectively. You are allowed to choose the parties who are to be gift recipients, so develop a criteria for this. For example, rent on time or early for all periods (weekly or monthly) in the past 12 months; no disturbances; repairs for tenant caused damages paid by tenant; informing landlord of misbehavior by other tenants; and I'm sure you can come up with more. The gift should be more like a reward for good behavior. And you should be conspicuous in passing out the gifts, so that those not getting them can be told as to why they are not gift recipients.
Again, I'm not saying you should give a gift, only saying that if you make this choice, that you make it based on good and sound reasoning, AND that it has the possiblity of getting you some better behavior (some of the late payers might pay on time for that small gift).
Real Estate Investor · Savannah, TX · Member since 2009 · 19 posts · 4 votes
16y
Doesn't giving a gift expecting something in return kind of defeat the purpose? And what if you were an awesome, attentive landlord AND gave a gift. Sounds like a Win/Win. Will there be the occasional lack of gratitude, sure, but I'll ask again. Are you giving just to get?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
16y
Originally posted by Jason Esparza:
Doesn't giving a gift expecting something in return kind of defeat the purpose? ...
If you were referring to my post, I did not say to ASK for something first. I said to REWARD those who are behaving as you desire, and let those not receiving rewards know that the gift was given for them being a good tenant in the specific criteria that you used to judge that. They will be the ones GIVING something first - behavior that you consider excellent - and you will be rewarding that. You don't ASK for it explicitly; it's all implied that to get that gift, you have certain expectations to first be met.
And for the rest of your comment - this is a business activity, not a personal activity, so in business you only pay for things when you receive something in exchange. Do you pay for anything else in your business without knowing that you receive something in return? If you are being "charitable", I say great but be sure you are giving to a real charity so you can get the tax break too; not too many tenants are charities as recognized by the IRS.
Real Estate Investor · Savannah, TX · Member since 2009 · 19 posts · 4 votes
16y
Steve, I should have clarified, my bad. Your suggestion had some good things. I was refering to some of the earlier posts. They just seemed to have the vibe of "only give if you get" or "never give at all". Just wanted to throw another question in hopes for some good answers.
Residential Real Estate Broker · Grand Blanc, MI · Member since 2008 · 885 posts · 316 votes
16y
I give a small gift to only our best tenants. I've been doing this for years. It's never anything extraordinary, but a small symbol of our graditude. Last year we gave out $10 gift cards to the local video stores. Certainly didn't break the bank. The rest of our "giving" comes throughout the remainder of the year when we act as an upstanding landlord - a landlord that differentiates us from slumlords which many of our current tenants have had in the past.
Treating them with respect and doing the right thing is what keeps loyalty. A small gift is just icing on the cake.