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Updated over 8 years ago, 08/07/2016
Rewarding Tenants
Hey BP family,
It's been a while since I have posted a discussion on here, but I was curious. What do you as a landlord do for rewarding tenants? Do you at all? If so, what do you do and why?
I have heard of many offering discounts on rent if they pay rent early and love that idea. I have heard of other landlords inviting their tenants to BBQ's (which may not be for all, but still). So if you do, what do you do?
I personally wanted to share a quick email that I sent to a tenant who I've had for over a year. Wonderful couple who are now recently engaged, and have always paid their rent or at least sent their rent check to my PO Box a week or so early before the 1st of the month. Every time I go to the property it is always in great shape, from the lawn to the counter tops, very clean, and presentable.
I felt great and wanted to return the favor. I didn't implement a rent discount like other landlords, so for me that option may have to be added toward future properties/lease agreements, but for this couple living in a SFH I really could only think of a few kind acts. Perhaps go mow their lawn on a weekend? Perhaps clean their gutters for them? Maybe go wash their cars? Or how about top off their water softener salt? Yeah!!!
That's it, I mean who really likes carrying those 50lb bags of salt downstairs and dumping them into the softener every 3-4 months or so for those folks here in the mid-west that know what I am talking about?
I know I don't, and since I had to go out their anyway I figured what is the cost of $20 in Salt that will help both my appliances, along with show appreciation and a mutual respect between my tenants and myself?
At the end of the day, this truly is a people business and the relationships we build and maintain with our tenants (for us buy and hold folks). The tenants you like and the best ones you have you typically will go that extra mile for within reason.
So please feel free to share your good deeds or tenant success stories. (Email below)
Email:
"I truly appreciate the responsibility that you both have provided and appreciate how well you maintain the property.
With that being said, I would like to provide you with a complimentary supply of water softener salt and top off your water softener, FREE!
it's not much, but its my way to show appreciation for having awesome tenants!!!
I will purchase four bags of softener salt and personally deliver and fill the softener myself on the 13th of August during my trash and recycling can safety/replacement inspection.
Thank you once again, and please do not hesitate to contact me with any issues or questions at all.
Thank you!"
I think gifting tenants is a bad idea. It puts you into "friend" category, and eventually they will ask for a "friend" favor, and you will have to say no.
You're not friends. You are someone who can render them homeless.
Just give good service. Take care of things when they break. Don't go hang out on the property all the time. Don't do millions of inspections.
But, otherwise, this is just a business deal. They will move when they decide they need a bigger place or want to buy, etc. They won't include your well-being in that decision.
Why do people spend so much more per gallon for Chevron gas? Because they provide a better product than other gas stations (where I live anyway). That gets me to spend more on gas there. I don't expect them to also chase me down the road handing me flowers.
Really, it can backfire. You'll appear wimpy, they'll ask for favors, you'll feel bad about raising their rent when you should.....just keep it respectful, fair and business-like.
I would not proactively volunteer anything for them doing a good job of what they agreed to do. As @Account Closed mentioned as much as I like some of our tenants, and we may have been friends had we met in a different way in life you are my customer and I don't want to ever blur that line because things can quickly change.
With that being said, carry it forward. If you can ever help them then do it.
I often find my self saying if I ever get the opportunity to show this tenant that I appreciate them I certainly will.
Good for you thinking along these line. The world cannot ever have enough good people.
I do an upgrade or something or the tenant. I have couple who are wonderful tenants. Sounds similar to what you described. We are putting in a sliding door and porch on the back of the house for them. They are thrilled. I wouldn't do it for most other tenants as they aren't as good as these, but I know these people will treat it well.
For another tenant, I am planning on putting in overhead lighting in the living room which they had asked about at one point.
It's win-win. They get a nice perk that they wanted and I've improved my property value.
I'm with @Account Closed on this. As a landlord/owner, I provide them with an above-average condition property and take care of any issues promptly. My tenants hold up to their end of the agreement (lease); everyone is happy.
I will admit this time around, we will give our new tenants a small housewarming gift of cutting boards. My fam loves the tenant and thought it was a nice little gift...I thought...new laminate countertops..ok for cutting board.
You do have to watch what can be perceived as 'friendship'with tenants. One of the golden rules is not to rent to family or friends, so don't make a tenant a friend. It can hurt you in the long run.
Originally posted by @Mags S.:
I'm with @Account Closed on this. As a landlord/owner, I provide them with an above-average condition property and take care of any issues promptly. My tenants hold up to their end of the agreement (lease); everyone is happy.
I will admit this time around, we will give our new tenants a small housewarming gift of cutting boards. My fam loves the tenant and thought it was a nice little gift...I thought...new laminate countertops..ok for cutting board.
You do have to watch what can be perceived as 'friendship'with tenants. One of the golden rules is not to rent to family or friends, so don't make a tenant a friend. It can hurt you in the long run.
Actually, you did remind me of one gift I started giving new tenants. A new toilet plunger. Saved me the hysterical phone calls and tenants wanting to borrow mine. Ew.
If a tenant is desirable I give them a bonus for resigning a second year lease as money off that months rent.
Maybe you can start giving out gift cards... Like $100 before Christmas for tenants that pay early. Make it "policy" and tell future tenants about it before lease signing so it is seen as an incentive instead of a gift.
You could make it a Home Depot card or something, which would make it more likely they'd get something for the house, win-win!
I like the idea of upgrades because it is not really a gift for them but it is. I have one tenant I asked when she was going on vacation so I could do her floors. I wanted to do them anyway and she would never ask for it but she sure did like it when it was done. I also do little courtesy things for good tenants much like the water softener salt. I don't like gifts per se. I will leave plungers and furniture floor protectors, picture hangers on move in but on an ongoing basis it is mostly extra attention and is there anything i can do for you type of things.
Originally posted by @Alexander Lang:
Hey BP family,
It's been a while since I have posted a discussion on here, but I was curious. What do you as a landlord do for rewarding tenants? Do you at all? If so, what do you do and why?
I have heard of many offering discounts on rent if they pay rent early and love that idea. I have heard of other landlords inviting their tenants to BBQ's (which may not be for all, but still). So if you do, what do you do?
I personally wanted to share a quick email that I sent to a tenant who I've had for over a year. Wonderful couple who are now recently engaged, and have always paid their rent or at least sent their rent check to my PO Box a week or so early before the 1st of the month. Every time I go to the property it is always in great shape, from the lawn to the counter tops, very clean, and presentable.
I felt great and wanted to return the favor. I didn't implement a rent discount like other landlords, so for me that option may have to be added toward future properties/lease agreements, but for this couple living in a SFH I really could only think of a few kind acts. Perhaps go mow their lawn on a weekend? Perhaps clean their gutters for them? Maybe go wash their cars? Or how about top off their water softener salt? Yeah!!!
That's it, I mean who really likes carrying those 50lb bags of salt downstairs and dumping them into the softener every 3-4 months or so for those folks here in the mid-west that know what I am talking about?
I know I don't, and since I had to go out their anyway I figured what is the cost of $20 in Salt that will help both my appliances, along with show appreciation and a mutual respect between my tenants and myself?
At the end of the day, this truly is a people business and the relationships we build and maintain with our tenants (for us buy and hold folks). The tenants you like and the best ones you have you typically will go that extra mile for within reason.
So please feel free to share your good deeds or tenant success stories. (Email below)
Email:
"I truly appreciate the responsibility that you both have provided and appreciate how well you maintain the property.
With that being said, I would like to provide you with a complimentary supply of water softener salt and top off your water softener, FREE!
it's not much, but its my way to show appreciation for having awesome tenants!!!
I will purchase four bags of softener salt and personally deliver and fill the softener myself on the 13th of August during my trash and recycling can safety/replacement inspection.
Thank you once again, and please do not hesitate to contact me with any issues or questions at all.
Thank you!"
The best "reward" is the quality of the product you're providing; the rental home and service.
- Residential Real Estate Investor
- Kansas City, MO
- 4,832
- Votes |
- 10,020
- Posts
I don't really like the rent discount for early rent as I don't like putting the idea of rent discounts in tenant's heads. What my brother (our PM) does is to ask tenant's when they're applying what they're favorite restaurant is. Then if we have a maintenance issue or want to reward them for something (maybe a lease renewal or whatever) he sends them a gift certificate. It's usually cheaper and also feels more genuine, at least in my opinion it does.
I just completely redid the ensuite master bath for my tenants. They have been great and brought to my attention that the caulking on the shower base was separating and not looking good. I could have just went in there and re-caulked everything but I figured it would be a win win for the tenants and I to redo the whole thing. They are now thrilled to have a luxurious shower and I am giddy that the value of my place went up :)
@Account Closed is on point here. Being overly nice and gifting these particular tenants may work out fine but long term it will bite you big time at some point. Being a responsible landlord is your part, their part is to pay on time and keep decent upkeep of the property. Don't blur the lines beyond that.
- Michael Noto
I used to provide tenants with gift cards ($50) at Christmas.
It didn't stop anyone from moving when they wanted to.
I've often been told I'm a "great" landlord because we address repair issues immediately.
That hasn't stopped a tenant, at times, from running out on us owing rent or leaving damages behind because, well, folks will often have their own excuses, justifiable in their own minds on why they do the things they do.
Now I focus on doing the repairs quickly because I want to keep my investments in the best shape I can to prevent further damage.
I don't want to be friends with my tenants. I want them to pay me on time, not damage my property and report repairs issues to me promptly.
Gail
I have given an xmas gift of a card and candy. I also gave the tenants a baby gift when they had there baby.
I'm replying from a former renter's perspective. The best Landlord I had did two things that I appreciated greatly.
1. Was available when I called that day or the next
2. When I asked if I could make an improvement to the house, he offered to cover half the cost (or lower my rent the next month) if it was reasonable and would increase the amount he could rent the house for when I left.
i.e. (put up a fence for dog, upgraded the "floating style wooden steps" to have a backing on them so your foot didn't fall thru, getting a lawnmower we agreed would stay at the house if I moved out, etc)
I think landlords often think that tenants are thrilled with them coming and making upgrades - but they really aren't.
In my situation as a tenant now, if my landlord told me they were going to come in and upgrade my bathroom, I'd be the opposite of thrilled. My life would be upended with people coming into my space, my bathroom would be torn up for however long - when I would have rather left things the way they were and not have my home invaded and disrupted by construction and workers, etc.
And I think landlords also forget that tenants aren't really in a position to tell you that they actually hate what you're doing. You are the person who can decide not to renew their lease, or render them homeless, or give them a bad reference. So, depending on their ability to thumb their nose at you and not care about any of the above - they're not likely to give you any response other than the one you want to hear - "Oh, yes we're thrilled!" And as soon as you leave, they start talking to each other about how they hate it.
Tenants rarely forget that you are in the position of power. And I think many landlords love to think of themselves as the "great benefactor," making their little people grateful for what they do for them - when that's not reality.
My point being to keep things in perspective. If possible, put yourself in the shoes of the tenant. You "think" they'd love what you're going to do, and they aren't likely to tell you they will hate it. But, really try and imagine what their real lives will be like when you tear up their home while charging them the same rent they would have paid and have been left alone, were it not for your benevolent upgrades.
Plus, they'll be afraid the upgrades will mean higher rent. It would be a very rare tenant indeed who would be "thrilled" about them.
I think upgrades should be done between tenants. Let the new tenant be thrilled.
I'm surprised that so many landlords here don't think of their tenants as their customers. Sure, being a great landlord doesn't mean that you'll keep good tenants forever, or even that they won't break a lease when they have a change in circumstances. And obviously, the customer isn't always right. However, they might be more likely to negotiate in your favor when you treat them well. Or they might be more likely to call you when there is a drip beneath the sink, rather than wait six months until the sink cabinet base has turned to mush. I have a tenant that called me last night because she accidentally broke a window, and wanted to know who she should call to have it replaced. If I wasn't good to her, she may have ignored it and tried to deny that she did it when she moved out.
My tenants are my customers- I treat them well and they treat me well. When tenants move in, I always have a small care package for them, some basic cleaning supplies and maybe a laundry basket. When a tenant pays rent EARLY for six months in a row, I send them movie passes. When a tenant asks if they can plant flowers, I'll pay for half of the perennials. We have a monthly newsletter for our tenants and usually put a quiz or contest of some kind in there and give away a gift certificate for dinner or tickets to a hockey game.
Does is make me more money? Probably not, at least in the short term, but I get a lot of referrals. I've even had tenants move out for a year, then ask to come back a year later. Guess what, I didn't have to advertise or show the house, not even a minute of vacancy. Returning a kindness to someone who has treated you well will come back to you. Maybe not directly, but it'll come back.
- Corby Goade
I agree with. Sue Kelly keep it professional and don't come across as a soft touch. You do your job by providing good safe functioning housing. They do their job by paying rent. RR
Why stop at a bbq invite? Why not give them a free month's rent?
We may do a small gift card here and there.