Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
Well... i consider myself to be a pretty adept business person and I like to make money :). I also strive to be professional with my tenants.
While I would not hang out with my tenants, I do think a card or low cost thoughtful gift is fine. I always try to remember that my business is a service.
One final note: i find that being approachable, professional and kind is a win win for all involved.
Rental Property Investor · Tampa, FL · Member since 2017 · 70 posts · 115 votes
7y
@Wesley W.
My recommendation was that a one size gift fits all (gift card) approach is best if someone chose to do gifts at all. Did not mean to imply different gifts for different tenants.
Rental Property Investor · Tampa, FL · Member since 2017 · 70 posts · 115 votes
7y
@Caleb Heimsoth
Agree that gifts aren't really scalable. If there is a place for gifts, which should be the exception, it would be at a much smaller scale. A Christmas card from "your friends at Investment, LLC" might as well be spam.
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
7y
When I rented, my landlord gave me a simple Christmas card. Meant all the world of a difference to me. I didn't once think of it as my money being spent, it was a thoughtful gesture that cost $3. And I still paid on time after that, every time. Some of these people may not have a family to go to for the holidays. Some people are less fortunate than others.
If you sincerely want to give a little gift, you are just being yourself. No one is going to take advantage of you over a piece of chocolate, that's crazy. People will act and do as they please regardless.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
7y
1. I do not want a tenant who is going to decide to stay because I give them a gift card.
2. I have been on here long enough to see a boat load of "I was trying to be a nice landlord..." threads to know that I prefer operating my business as a business. I do not need to retain a "customer," they friggin live there- if they decide to move on it is not going to be because of a gift card or a tin of popcorn.
3. I suspect the majority of the gifters are SFR landlords who are in a constant state of fear that their tenants might move and they will wind up sitting the bed. Or they seek to make the business relationship more of a personal one and invite all of the drama that that entails.
4. Once again I say this: A tenant is not a customer! There is an entire set of statutes in every state giving tenants far greater rights than a "customer." There is an entire division of the civil court system which is carved out for tenants and not "customers." You are running a business but that does not make the tenants your customers.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
When my tenants buy me a gift for putting up with their shenanigans then I’ll think about it .until then they will get the same thing I get .. nothing .if you buy them anything be sure to budget that every year because every year they will be waiting at the door with their hand out waiting like a dog at the table
We don't do holiday gifts.. sure, $25 sounds like a nice amount.. but what about when you get 10, 20, 100 tenants? They'd probably prefer a note just saying to pay $25 less in rent. I always thought that's what I'd do, but I do agree... most won't appreciate it, and just be like.. yeah.. this a-hole is obviously overcharging me $25/mo if that's what he is giving me.
Instead-- each year we put $200 to an upgrade to their house! It gives us a chance to check on the property, and fix anything small they might not have thought was important, is tax deductible-- and shows you care about their quality of life. It's always been surprising, in a good way, what people ask for, because until you live there-- you don't know what it's lacking. Skip the xmas presents, and buy yourself an improvement --of their choice at renewal!
Investor · Chicago, IL · Member since 2015 · 46 posts · 9 votes
7y
I find this thread very interesting and frankly I've been kicking around the issue in my head. My only contribution is that I work in a 16 story high rise in a Chicago suburb and every year they give giant poinsettias out to all of the offices. Never once have I felt they were overcharging us. They also do fresh popcorn or something small about 1/x month. Bldg is managed by EQ office who operates all over the US.
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
7y
@Dennis M. I put up with my families shenanigans, and they still get gifts lol.
If you are being thoughtful, that's just it, youre being thoughtful. There shouldn't be an expectation for anything in return. Sure, a gift that costs $25 or more might be overkill, but a simple card goes a long way. You don't always have to be the tough business man. In fact ive learned that gaining respect produces far better results in life.
Butler, NJ · Member since 2017 · 15 posts · 10 votes
7y
@Adrian Smude
I am going to stand in a neutral position and say that there's no harm in a small gift (valued at no more than 1% of your monthly rent) but only if they've been good tenants. A good tenant pays on time, keeps their unit clean, don't cause any disturbances and respects your property. A gift card at 7-11 will work fine.
Having said that, I would proceed with caution. There is certainly a slippery slope regarding the business relationship with your tenant. Always stick to your standards/SOP's, follow the lease agreement to the letter and do NOT reward a bad tenant.
Best of luck!
If you're doing all that and are a professional at all times, there's no harm in giving a small gift.
Real Estate Agent · Boise, ID · Member since 2017 · 562 posts · 376 votes
7y
When in college none of my landlords gave me a gift ever, not "hobby" landlords or the multiplex. It was not something that I expected to get. This does seem to be a nice idea but in theory only, you have to agree with the above that once you scale up to more units you do not want to have the tenants expecting a gift from you. Provide clean, affordable housing and repair items as needed and this is gift enough.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
I aM interested to read many folks saying they “give” their tenants this that or the other service. No, actually you are not giving them anything. They are purchasing a service from you and you in turn are fulfilling that legal and contractual obligation.
I do find it sad tho that apparently so many are not able to see that marketing absolutely IS a part of a winning strategy and that it is usually $$ well spent. While a gift card may or may not be scaleable there are many creative ways to use your retention budget ;)
Landlords get a bad rap due to how the majority of landlords/management companies treat their tenants. This in turn creates opportunities for a smart business person
While so many folks seem to be the type of landlord folks love to hate - it easily allows tenants to make a choice when they are shopping and also allows me to charge among the highest rents in my area. So thanks guys :)
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
7y
Not getting your tenant a gift has absolutely zero to do with treating your tenant badly.
Not fulfilling your contractual obligations is treating your tenant badly.
Again, I do not want to rent to desperate or emotionally needy people. If a tenant is going feel “uplifted” if I give them a card then they are far too weird and desperate an individual for my beautiful place. As such I will give my current tenants the gift of not having to share a building with such an emotionally desperate individual.
Specialist · Chicago, IL · Member since 2015 · 870 posts · 345 votes
7y
I give my tenants a clean and safe place to live in exchange of paying rent. My rents are above market value because my places are clean and well maintained, not because of festivus cards. That's enough.
Tenants are not customers, they are employees (Landlord on Autopilot). You need to train them to fit your business.
I thought about doing something like that, but I couldn't find a logical reason to justify it.
Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
7y
@Adrian Smude I do give small gifts to my tenants who have been paying on time and taking care of the properties. Everyone is different. I own multiple businesses and I also give gifts to my IT clients on Christmas.
Investor · Bronxville, NY · Member since 2017 · 101 posts · 48 votes
7y
I normally offer 6 consecutive months paying on time incentive gift card...it's not buying...it's business. you pay me my $$ on time, we'll have no issues.
Be real, tenants are tenants. A lease is not going to make them pay on time...a gift card of $25 bucks goes a long way. My goal is keep them in there. I HATE VACANT units!
Investor · USA · Member since 2015 · 325 posts · 447 votes
7y
@Adrian Smude
This is something that really gets people fired up and in the Christmas Spirit, lol.
I do the small treats with a card. I feel like it creates goodwill. Some people may think that is a waste of money but I think it fosters good relationships and usually it is reciprocated, as in some of my tenants give something back.
My clientel is suited for it. Some may not be.
Investor · Denver, CO · Member since 2018 · 57 posts · 30 votes
7y
@Moises B. This is a great idea to keep tenants if you only have a couple of units. However, I can see it becoming a significant expense if someone has multiple doors. Especially if you have a few multi-family properties.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
7y
I've personally haven't done gifts to tenants. However, one of my tenants took my father and friend who helps me manage the unit for drinks, seafood, and lobster, on him! Maybe the rent I was charging him was too low.. ;)
Lowes and Home Depot may give you a gift card but it is not because they love you, it is to get you inside the store.
You don't have to "love" your tenants either. But if a small token gift makes good paying tenants more likely to continue being good paying tenants, then I say go for it. As a landlord, you already have them "inside the store". You want to keep them there.
I'm surprised at all the "scrooges" posting here who can't see the benefits of doing a little something extra for the people they do business with. You can just as easily send a small something to your vendors and employees.
@Moises B. This is a great idea to keep tenants if you only have a couple of units. However, I can see it becoming a significant expense if someone has multiple doors. Especially if you have a few multi-family properties.
If your cash-flow is so marginal that a gift of $20 per door per year is going to put you deep into the red, maybe you aren't charging enough rent in the first place.
OF COURSE it's a significant expense with dozens of doors! But dozens of doors should be bringing a significant cash-flow, more than enough to afford a small token of the season.