Gifts around the holidays

[Jeremy Nault]

Curious to hear everyone's thoughts on giving gifts to tenants around the holidays.  This is the first year I have done it and I have only had good reactions thus far! It seems like an easy way to help build a positive rapport with your tenants.  Does anyone have any experience with giving small gifts around the holidays to tenants? 

[Joe Splitrock]

@Jeremy Nault of course anyone receiving a gift will show gratitude. I will send you my address and you can send me a gift. I promise to be ridiculously appreciated! Unfortunately kind deeds can often have repercussions:

1. When you give a gift, it sends the message that you have excess. This is a problem when you go to raise rent or deny a property improvement. They believe you have enough money, but choose to charge them more anyways. (Obviously size of gift matters here. If you give a $10 Starbucks card, that is way different than a $100 card.)

2.  Tenant can be offended because they are paying for the gift. Let's say you raise rent $40 a month, then give the tenant a $25 gift card. The tenant thinks to themselves, "I paid for that gift". They say thanks, but are thinking "thanks for nothing".

3. Once you give a gift, you set a new standard. Most people don't expect a gift from a landlord, so not getting one is no big deal. Once they get a gift, they expect it next year. When you don't give a gift, they feel cheated.

4. It can make a landlord feel even worse when things go wrong. You may give them a gift in December and they are late on January rent. You think to yourself "I was kind to you and you treat me like crap". The point is you gave the gift expecting good will and when you don't get that, it will set you up for greater disappointment than if you had given nothing, 

If you do give a gift, make it very small like $10 or less. Send it with a card thanking them for their business. If you keep the gift very small, it doesn't set expectations.

My wife's company gives employees a gift at Christmas. It was usually valued around $100. One year, they gave everyone $1000. Ever since then when they have the big gift reveal, people are disappointed by the gifts, because they are worth nowhere near the cash. Last year they got an Apply watch and people were pissed off. I know it seems strange, but this how people think. Understanding human psychology and emotions will help you manage your business.