Am I crazy to offer gifts for tenants

[Tami R.]

I thinking this real estate stuff is making me crazy lol. I live in the Midwest, if you live where it's cold you know once December hits it's hard to rent houses and apartments until late March. The end of July and October I bought some some multis and had to do some work... so I am sitting here and I have some great places. Price good, etc but it's a struggle to get GOOD tenants. I can rent the properties to crap and have to do a complete remodel in 4 months and go to court but I would rather leave them empty. So I was driving today and thinking about how to get the good tenants etc to go with us and not another landlord etc.... This one rental mgmt company offers on occasion to get the 4th month free in rent. Well I don't want to do that... that could be between $600 to $900... and 3 months is too short. I thought if they went the first 6 months no late payments they get a free 55 inch flat screen. Sounds nice and people and tenants they want stuff and I can get a TV for 300. Now am I insane? Or what have others done?

[Jeff Brower]

Yes, do not do that. I have done this: provide clean and safe housing for a specified fee.

[Mary M.]

I would think offerring 50% off second months rent would be a good way to garner interest.....  I see that offer at times in my market. I just think hmmmmm....  give 50% of rent so that I rent it out sooner rather than later = sucess in my book :)    I prefer this method over lowering rent as the discount is on time, but discounted rent lasts for the year...

[Thomas S.]

This time of year there are fewer tenants looking but there are also fewer units available. It's a wash.

There is no reason to offer incentives. If you advertise they will come. Be patient. 

[Richard Sherman]

Lower your price to be slightly under comparable units on the market and take your pick of the tenants.  :)

[Robert Biggerstaff]

I only offer incentives for great tenants to renew the lease

[Jeremy Hua]

If that was your play, I'd advise stocking up on big screen TVs for $125 each Black Friday.

[Evan Brookman]

Being a owner is not always a business, you could always build relationship with your tenants too. 

[Colleen Pelliccia lavin]

I’ve heard of giving welcome gift baskets with things like light bulbs, pot holders, etc.

[Jessie Johnson]

No! I think it's definitely a nice touch for tenants. It's super easy to do yet very personal. When I sell a home I even give my clients a congratulations gift.

[Angal Faria]

Welcome, congrats, etc.

[Jonathan W.]

@Tami R. If certain months for finding tenants are real bad then yes offer an incentive! Examine your cost. If for two months it’ll go unrented then offering one month free isn’t a bad idea. I’d much rather go with the perks kind of incentive. People don’t often weight the price of what your giving them in their head properly, that’s just social science. So like if your offering a free tv that cost like 500$ or if your offering 500$ off first months rent, some people will think the tv is a cooler deal. It’s weird to explain as I’ve literally just finished reading a chapter in dan arielys book about it but yes, offer a cool perk people would appreciate. It will get you far

But to be honest the last place I rented I held off on until they offered a free month. Sometimes they did 500$ off but I waited till they did a month free. Huge difference, saved money, was happy

[Sara N.]

We've given Starbucks gift cards ($25.00 each) during the holidays to our tenants who have stayed w/us several years. They appreciate it. I'm not sure if everyone needs a new TV--that sounds a little excessive. 

[Anthony Wick]

@Tami R.

Somebody revived your question. What did you decide to do about your situation? I bought a duplex last December in Ankeny, empty. As you know, the cold and snow was crazy in Jan-Feb.

I ended up with a short term tenant for Jan-Feb in 1 unit that covered all my costs, then permanent tenants in both March 1. Patience and reserves was my play.