Should a LL give tenant a gift?

Question

As a general rule I strive to be a landlord who handles his responsibilities under the lease in a professional and prompt manner.  Similarly the tenant has their responsibilities and I just want them handled professionally and promptly.  I avoid being a "friend" but am "friendly" in my interactions if this makes sense.

Tenant just had a baby.  Am considering giving a $50 Buy Buy Baby gift card.

This event comes up very rarely in a person's life so it it one of the few times I would consider (would not consider birthdays for example)

Jon Klaus · Answer

I give my tenants gifts in December. I go by in person for some face time since I rarely see them.  If they aren't there I leave the gift and call them to let them know.

Discounting rent is easy, but I like the personal touch of looking them in the eye as I hand them a token of gratitude.

Ned Carey · Answer

One of your biggest costs as a landlord is turnover cost. If it is a good tenant I want them there as long as I own the rental.

I believe giving small gifts at the appropriate time as part of a more complete tenant retention program, can help in this goal. In this specific situation Steve Babiak does make an excellent counterpoint.

(I'd probably opt for a $25 card. )

Ed O. · Answer

I don't think one kind gesture is a sign of weakness. 
It's all about tenant retention. I have given gifts out of kindness and strategy over the years. $50-100 for another year with a reliable tenant is the best money a person could ever spend in this business.

David Egger · Answer

I tell tenants to reduce their December rent by $50 each year.  Costs me very little, but new ones always seem a little shocked by it and very thankful.  That tells me it's something they value and appreciate, which will reduce their likelihood of bailing.  I'm working on a section 8 tenant so won't be able to do that, but I'll just send them a gift card.  Go for it!

Of course, other than that, it's all business.  I don't change my expectations elsewhere because of the gift - I think that's an important precedent to set.  Tenant was late on Feb. rent, I enforced the late charges, but she paid them and is still in the unit.

Jon K. · Answer

I could see it as a nice gesture for ideal tenants. I could also see it as a potential sign of weakness where a less ideal tenant could see you as weaker landlord.

What if the tenant loses their job in a few months? You give them a gift in December, then evict in the spring? I guess they would expect to be evicted if they didn't pay. Maybe I'm just too jaded.
 
I once gave a roommate/tenant a small "goodie bag" for Christmas (along with a few other nice gestures, like loaning them my parking space during the snow or minor stuff). Bad idea for me. They started getting lazy, entitled, whiny, and expecting me to cave on stuff. Now my gift to my tenant/roommates is a nice place with cheap rent. They pay and follow lease, they stay. Otherwise, out the door they go.

I could see a small gift for a standard tenant-landlord situation being a nice gesture. I had a landlord once give me movie tickets after an inconvenient repair. That made me happy for about a week, but I didn't renew my lease after that. The rent was high.

Adelina Rough · Answer

I like this idea. I am a renter and one Christmas I did received a gift from my landlord and I was so surprised. As a renter, I can say that there is this unexplainable feeling of happiness to received something from a person you least expect.

Larry K. · Answer

They have been good tenants so far and seem like gentle, nice people.  To the extent that their life goes well, I think they will work out as good tenants.

I like that idea of categorizing it as marketing (or precluding the need to market!)

I am gonna give it.  It will be $50 also.  Thanks for all the advice.

Nick Hubers · Answer

Is it planned? If yes, then Yes, I do not see any reason why this would account against professionalism. That is even in favor of your professionalism and business. Simple gifts like that given professionally will directly strengthen relationship with your tenant and decreases the chance of turnover.

Harry M. · Answer

We give our tenants gift cards every Christmas. I think it's important to keep things on a professional basis, but I think an occasional act that says "we appreciate you" is a good thing to do.

Scott Pirrie · Answer

I always try to remember that my tenants are my customers and paying my bills!  I think we too often get jaded by bad tenants be good to them and they will be good to you!

Should a LL give tenant a gift?

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