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.
Think of it this way. Let's take any normal REI that has a mortgage (like most investors), does your bank send you a gift for paying on time? The answer is likely no. So why would you do this for tenants?
Your bank probably sends you a calendar every year, or at least has them at the bank that you can take for free. And you don't even need to pay on time. Danged calendar retails for $15 if you buy one at Target.
I don't think that small time landlords understand the message they are sending to tenants and honestly this is not about being a scrooge.
To put this into perspective how about we get a few investors on here with 1000+ doors and ask them what they give their tenants as Xmas presents. No, they don't, why is that.
What message do you think a landlord is sending their tenants?
And why would I care whether or not an investor with 1000+ doors is going to do a little something nice for his tenants?
OK, maybe if I give my tenants a nice little holiday gift, they'll all laugh at me then burn the place down then sue me. I'm willing to take that risk.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
When you give a tenant a gift card the followIng thoughts are usually what take place .
Landlord :
I’m going to give tenant X a 25$ Walmart gift card to show gratitude and express generosity toward him for paying on time and he will then know how much I appreciate his tenancy this past year .ill feel good and he will feel good .
Tenant X:
I’m surprised the landlord gave me anything he’s so cheap . Figures it was only a lousy 25$ gift card ! Its the very least he can do because I paid for it anyway through my rent ! must be nice ..must be great to have plenty of extra money that he can afford to just hand out gift cards to everybody like nothing .guess im going to Wally World to get a few packs of smokes now .
Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
7y
@Andy Brown Sorry man, I responded before I read all the way down lol. My point was going to be that that won't scale but it seems like everyone knows that. I can't seem to edit posts from my mobile or I would have changed my original posts wording a little. Good luck in your investing!
Rental Property Investor · Hershey, PA · Member since 2017 · 25 posts · 7 votes
7y
@Adrian Smude i give chocolate or warm slippers so they feel nice and cozy in the property. Gifts should promote behavior you want like longer term tenancy for example
stuff that makes them enjoy the unit more or things they can enjoy at home. Psychologically can increase their desire to stay longer if it is comfortable and homey.
Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
7y
There are too many great points from the positive people, so I have voted on your comments. Thank you for helping to build a positive name for us landlords.
I have been giving my tenants gifts for over 15 years. When I was a hobby landlord and now as a full time investor, some tenants are extremely grateful and some I never hear from. ALL of my tenants receive a gift because if they are problem tenants they don’t stay long enough to find out.
I’ve had tenants give me gifts, invite me to family functions, and so on. I keep a professional relationship but I treat them how I’d like to be treated. We have EXTREMELY low turn over.
As far as tenants being customers, I believe they are your most important asset. They are there to take care of your house. We do not give gifts for the purpose to persuade the tenant to stay, but we want to provide a great experience.
We are in the SFR space.
Ps. I personally deliver the gifts. Our tenants also get a birthday card in the mail from us as well.
Attorney · Miami, FL · Member since 2017 · 108 posts · 113 votes
7y
I give my tenants a little gift card of 25 bucks or so. Either to Bed Bath and Beyond or Lowes or Home Depot. They will use it for a welcome mat or a planter or wind chimes. But even if they didnt use it for the property, it doesn't really matter. It's part of a marketing and goodwill strategy. And it doesnt break the bank.
This isn't a landlord-tenant thing. Its a business thing. Business gifts are given all the time as signs of appreciation for customers using your business as opposed to someone else's. They are meant to foster relationships for future business. My realtor sends me a holiday gift. So does my mortgage broker. I send people that refer me business a gift. My office building sends us a holiday basket that probably costs 50-75 bucks.
So while some of you may have this "tough as nails" attitude about a small holiday gift, it is not a shared practice in the business world. In fact, its the complete opposite.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
7y
Proper screening and proper management ensure good tenants and good tenancies. To propound that a gift would do the same is utter nonsense and an insult to the landlords who put the work in to manage their properties as a business.
To the extent that some use it as a psychological cudgel in the hopes of good tenancy... I laugh. Like helicopter parents who unsuccessfully bribe their snot nosed brats- you have lost just by playing the game.
Rental Property Investor · MD · Member since 2016 · 30 posts · 7 votes
7y
@Adrian Smude I agree with some of the above statements , I’d be more open to giving small gifts to lenders , realtors , good gcs, and other deal finders. Tenants come and go but someone who can help scale your business I think would be a better relationship to nurture.
When you give a tenant a gift card the followIng thoughts are usually what take place .
Landlord :
I’m going to give tenant X a 25$ Walmart gift card to show gratitude and express generosity toward him for paying on time and he will then know how much I appreciate his tenancy this past year .ill feel good and he will feel good .
Tenant X:
I’m surprised the landlord gave me anything he’s so cheap . Figures it was only a lousy 25$ gift card ! Its the very least he can do because I paid for it anyway through my rent ! must be nice ..must be great to have plenty of extra money that he can afford to just hand out gift cards to everybody like nothing .guess im going to Wally World to get a few packs of smokes now .
So you're saying is that when you give a tenant a gift, you're going to piss them off so much, they're all going to go on a rent strike and burn your building down then sue you?
Because if they don't, my thoughts are that at the very least you're no worse off than before. More likely, the tenant will have a smile of happiness -- everybody likes getting gifts -- even if that smile is only for a brief second or two.
I'm willing to risk it.
--
I remember in my younger days, the company where I worked reached some kind of anniversary. 25th, 50th, I don't remember. They gave all the employees a little commemorative dish. Must have cost $50 each in today's money. We all made jokes about how the company was pulling down millions, then only spring for this little cheap, crappy "ash tray". Hey, why don't they give us money? Hey, how about a raise in pay, Mr. Cheap-A** Company? Hey, why isn't this real gold lettering, we could at least scrape it off for a few pennies?
But you know what -- joke as we may, none of us tossed it.
Some even set it out on their desk with what must have been some measure of pride, small as it might have been.
So yah, none of us could take it to the store to buy cigarettes, and we couldn't melt it down into a gold nugget that would let us retire, and we all had a good ol' time joking about it, and I doubt any of us worked any harder for the Man over it. But we kept it.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
7y
@Adrian Smude
They’re lucky to get a merry Xmas text from me. They should give us gifts for putting up with their bs and giving them a nice place to live
Lawrence, KS · Member since 2015 · 33 posts · 15 votes
7y
@Adrian Smude couldn’t agree more......I personally think it’s a great thing to do, and it works when it comes to tenants retention. Some people might disagree, and that’s ok, but we all have different strategies on how we run our businesses. It’s just a good business strategy, in my opinion.
Much more success to you!
Naperville, IL · Member since 2018 · 330 posts · 357 votes
7y
Dennis, you have no idea what a tenant thinks when they get a gift. We give $25 gas cards. H's W-2 job is in oil and gas. But two of our properties are across from a competing company and we give those tenants THAT gas gift card because it's right there. We've gotten candy, Starbucks, sweet handwritten thank you cards, homemade bread, a lunch with a tenant, and fifteen referrals in 11 years of doing this. (We are admittedly small at ten units.) Not all the referrals have panned out, but I absolutely believe we have gotten our money's worth. And I've suspected for a looooong time that the S in Thomas S stands for Scrooge.
When you give a tenant a gift card the followIng thoughts are usually what take place .
Landlord :
I’m going to give tenant X a 25$ Walmart gift card to show gratitude and express generosity toward him for paying on time and he will then know how much I appreciate his tenancy this past year .ill feel good and he will feel good .
Tenant X:
I’m surprised the landlord gave me anything he’s so cheap . Figures it was only a lousy 25$ gift card ! Its the very least he can do because I paid for it anyway through my rent ! must be nice ..must be great to have plenty of extra money that he can afford to just hand out gift cards to everybody like nothing .guess im going to Wally World to get a few packs of smokes now .
So you're saying is that when you give a tenant a gift, you're going to piss them off so much, they're all going to go on a rent strike and burn your building down then sue you?
Because if they don't, my thoughts are that at the very least you're no worse off than before. More likely, the tenant will have a smile of happiness -- everybody likes getting gifts -- even if that smile is only for a brief second or two.
I'm willing to risk it.
--
I remember in my younger days, the company where I worked reached some kind of anniversary. 25th, 50th, I don't remember. They gave all the employees a little commemorative dish. Must have cost $50 each in today's money. We all made jokes about how the company was pulling down millions, then only spring for this little cheap, crappy "ash tray". Hey, why don't they give us money? Hey, how about a raise in pay, Mr. Cheap-A** Company? Hey, why isn't this real gold lettering, we could at least scrape it off for a few pennies?
But you know what -- joke as we may, none of us tossed it.
Some even set it out on their desk with what must have been some measure of pride, small as it might have been.
So yah, none of us could take it to the store to buy cigarettes, and we couldn't melt it down into a gold nugget that would let us retire, and we all had a good ol' time joking about it, and I doubt any of us worked any harder for the Man over it. But we kept it.
When did I say they would go on strike ,sue me,or burn the place down ?? I didn’t imply that at all . The point is they will -likely -not appreciate the gift they will see it as a bribe which it is and most tenants have a different view on this tenant landlord relationship . In fact many times they despise the landlord . Why give people like that gifts ?
It’s simply not necessary and a futile effort . If you want to waste money go for it ! Keep bribing your tenants and patting yourself on the back How pius and noble you are for helping the downtrodden during the holidays .