Tenant Appreciation or Holiday Gift

General Landlording & Rental Properties
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Tenant Appreciation or Holiday Gift

Kurt Stein
Investor 路 Jacksonville Beach, FL 路 Member since 2016 路 33 posts 路 9 votes
Hi BP, I'm relatively new into the landlord game but I'm trying to set myself apart from the other property managers by providing top notch customer service to my tenants. As the holidays are approaching, I'd like to hear what you all have done to show appreciation to your tenants. I'm thinking about sending a thank you note with a small gift around Christmas time. What have you all done? What have your tenants enjoyed the most? Any thoughts or ideas will be greatly appreciated! Thank you, Kurt
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Shawn AckermanPro Member
Real Estate Entrepreneur 路 Mid West, East Coast 路 Member since 2015 路 3k+ posts 路 1k+ votes
9y

@Kurt Stein I think what your thinking of doing will certainly set you apart from the rest.  Innovation is a key component to keeping the client happy.  I'm sending all of my tenants a 1 year supply of self addressed envelopes to send me my money on time!!!! LOL Kiddiing.  I think a personalized letter will suffice.  If there is specific information you know about the tenant i.e. if they just had a surgery, have kids in college, just bought a car etc.... you should add that to the letter to make it personal.  That will go a long way in developing a sense of community.

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  • Mark Radford
    Investor 路 Indianapolis, IN 路 Member since 2013 路 80 posts 路 64 votes
    9y

    We avoid personal gifts for the reasons mentioned here. However we've done modest upgrades for great tenants who've stuck around. Some have included:

    Privacy hedges/snappy landscaping.

    Bike racks or bike ports.

    Patio furniture. (Obtained at Goodwill/Habitat outlets. *Stays with property*)

    Small deck off the back door.

    Etc.

    All are appreciated by tenant, increase appeal of our product, and are a minimal cash investment on our part.

    Leaves room to raise the rent a few bucks also. 馃槅

    I would avoid discounting rents in any form. Do lenders do that for us?

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  • Stephen E.
    St Thomas, Ontario 路 Member since 2013 路 575 posts 路 408 votes
    9y

    This topic pops up every year on BP. There are usually a range of responses, from no, tenants are not your friends and you should give them absolutely nothing apart from a rent increase (that would be you, @Thomas S. ) to various gifts, to a rent discount. Personally I believe it is the season of giving and in my experience tenants do not resent small Christmas gifts together with a visit of 20 minutes or so. I have tried a number of such gifts and people respond well to them.

    Behavioral academic research says that hedonic gifts, that is gifts with pleasurable associations, are seen by recipients as having more worth than cash of the same value. So movie tickets rate highly, and Costco do movie tickets for couples and for kids complete with popcorn and pop. Gift cards for book stores fit the bill also. So those have gone down very well. Last year I tried a basic level gift basket from Costco. They come with cookies, candy and such, all with a pot that can be used as a planter afterwards - and all for $20. They are very well wrapped and do not look like they cost $20 and they go down very well. My handyman got one as well last year; I want him to come running when he gets my calls, and because we have a good relationship he does.

    Visiting tenants can go a long way to building and maintaining relationships and getting a sense of where things are at in a tenancy. Very often you can learn whether the tenant expects to move in the next year, and so can better plan for a vacancy if need be. You also can get a sense of the condition that the tenant is keeping the property in. Having good relationships with your tenants is professional - you want them to be responsive when you have landlord - tenant interactions and you want to establish a cooperative and respectful relationship on both sides. Christmas provides a time when you can help do this. Most tenants do not expect their Landlords to make any time for them at Christmas and are pleasantly surprised. Your mileage may vary but I have found that hand delivering a small gift and a Christmas card is welcomed and appreciated.

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  • Thomas S.
    Member since 2016 路 13k+ posts 路 12k+ votes
    9y

    Having good relationships with tenants is important. As a landlord your first priority is to insure the property is well maintained by you, the owner, and that all tenant needs are promptly addressed. Fulfilling all business obligations as a owner should in the real world make your tenant "happy". Hobby landlords however generally believe they have a more personal relationship with their tenants. This misconception is common among small operation landlords and is of course the reasoning behind wishing to extend the relationship through gift giving.

    Beyond maintaining a safe and secure living environment for tenants there is no responsibility on the part of a owner to make a tenants life "happy" and no expectation on the part of the tenant. To be very clear the giving of gifts to tenants is personal not professional in nature.

    1Reply
  • Stephen E.
    St Thomas, Ontario 路 Member since 2013 路 575 posts 路 408 votes
    9y

    There are legitimate differences of opinion on this point. My own view is that if a tenant sees a landlord as being so hard boiled that they dislike dealing with them they are more likely to move. Vacancy and turnover are the two biggest expenses in landlording. Therefore modest efforts to be more accessible and appreciative are not misplaced if they improve the relationship. Stone cold operators will reap what they sow.

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  • Deanna McCormick
    Minneapolis, MN 路 Member since 2013 路 2k+ posts 路 1k+ votes
    9y

    I think depends on number of units, We have a personal small rental business, I give a small happy holidays happy new years gift of like a mug with cocoa in it or candy, like 7 bucks a piece at club stores.

    Larger complex no. But I received many lovely holiday gifts from residents while managing a 120 unit complex that was OH so special.

    We did a resident appreciation HOT Dog / Ice cream social in the summer by the pool area, along with national night out, so everyone enjoyed that. I think that's more sensible than holiday gifts. 

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker 路 Chicago, IL 路 Member since 2013 路 6k+ posts 路 5k+ votes
    9y

    I used to do gift cards at christmas for my self managed properties, but I found it didn't really make a difference.  My tenants all stay till they have a major life event and need to move.  I do things for special occasions, like if they are getting married or having a baby, I google their registry and send a gift

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  • Steve B.
    Engineer 路 Portland, OR 路 Member since 2014 路 1k+ posts 路 1k+ votes
    9y

    Dedpite the well intention virtue signaling I agree with Greg and John - no gifts; It sets the wrong frame.  Give the same money to some starving urchings in Botswana instead.

    0Reply
  • David Faulkner
    Investor 路 Orange County, CA 路 Member since 2015 路 2k+ posts 路 3k+ votes
    9y

    Give them the gift of a nice, well maintained place to live ... it's the gift that keeps on giving and keeps them giving you rent on a regular basis. They'll appreciate that more than jelly of the month club memberships :)

    0Reply
  • Katrina M.
    Architect 路 Sydney, NSW 路 Member since 2016 路 66 posts 路 38 votes
    9y

    @Kurt Stein 

    I'd like to offer a different perspective.

    Your tenants will not love you more if you send them a postcard or a gift.

    Let's compare a situation where one is a valued customer of local beauty salon and gets a Christmas card and where one is a tenant. That's a completely different relationship. The difference is one is a customer of a beauty salon by choice whereas one is a tenant out of necessity. One can choose not to go to the beauty salon next month but one can't choose not to rent next month. People enjoy going to a beauty salon but noone enjoys renting. So there is always some sort of a negative feeling stemming out of inability to have your own place. 

    But there is a simple way to show that you care if you have a few of them. Give a call and wish happy holidays.

    I don't think you need to thank them. Good wishes are enough. And I like @Shawn Ackerman's comment about mentioning their personal events. 

    @Kurt Stein

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  • Nathan Letourneau
    Investor 路 Hudson, WI 路 Member since 2016 路 82 posts 路 18 votes
    9y

    A pie at Thanksgiving and a gift card at Christmas. The amount depends on how long they've been there. I don't do a rent credit, I'd rather give them a gift card ( to a store, restaurant, etc) that they will remember and associate with the gift from us.  A rent credit is easily forgotten as the renter never really "sees" it or "experiences" it physically.  They do remember and associate whateever they buy with the gift card or the experience at the restaurant with their roommate/family.

    0Reply
  • Michelle B.
    Investor 路 Lebanon, OH 路 Member since 2016 路 144 posts 路 87 votes
    9y
    I have never given holiday gifts to tenants, nor will I ever. If I want to show appreciation I will spend money on their unit. Nothing big, just little things....I'll buy mulch in the Spring, maybe a couple plants/flowers, or maybe get them a new lawnmower when the old one has acted up a few times. You get the gist. Not only does this make them feel good / appreciated but it also helps improve my property. Cheers! Michelle
    0Reply
  • Tracy D.
    Investor 路 Neptune Beach, FL 路 Member since 2015 路 143 posts 路 172 votes
    9y

    I have many houses in Jacksonville. Last year I personally delivered a turkey at thanksgiving to every single house. Then I delivered a ham at Christmas the same way. It was the first year I have ever done it. It was definitely a hit. The only tenants that didnt renew with me was one moving out of state and another i evicted for non-payment.  I enjoyed doing it as much as they enjoyed receiving it. I will do it this year too

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