Did I just screw up my cash flow?! I credited my tenants.

[Braden Anderson]

Want to get your thoughts. I just purchased a basement apartment and promptly got renters into it, paying me $1050 a month. When we signed the lease, I said that I would get someone down into the basement to add washer and dryer hookups ASAP to hookup the stackable washer and dryer I bought for the property.

After having a plumber, an electrician, and an HVAC guy come down, I got those installed much later than I was hoping. It was also much more expensive than I had originally been quoted.

Then I purchased blinds for the property and went down there and installed those.

Then we saw that there was water damage on the window sill. I went down to investigate it (while they were on vacation) and realized that there was water leaking, due to no barrier between the foundation and the window. I got silicone and sealed that all up, after ripping out some of the drywall by the window.

Then I replaced the bathroom pedestal sink for a 36'' vanity sink and put in a new faucet and plumbing. Now the plumbing has been leaking. I went down to investigate the faucet and finally decided I was done and am going to have a plumber come and do it right. I told me tenants that I was sorry for all the interruptions and hassle of all of this. I gave them a credit of $150 for the troubles and told them to go get dinner of me. ---- What I'm wondering is, is that normal? Should I have given my tenants a $150 credit for about half a dozen interruptions in the last month? Should I have given them a larger credit? Or should I have given them no credit, because all that stuff is just part of being a renter - dealing with problems that the property faces as the landlord pays for it.

I feel good about giving them a credit, but I want to make sure I'm not being too generous, or if I'm not being generous enough. Thoughts here? What would you have done? I'm not so worried about the expenses of the fixes I've had to do - I've included those in my numbers. I'm more wondering if a renter credit is normal, or too over the top? Thanks!

[Ben Sears]

I'm sure you'll get a lot of different opinions on this because every landlord has their own way of doing business. Personally, I'm ok with a credit and dinner because it shows your tenants that you care about their tenancy. I dont' know that I would make it a regular thing that they come to expect but it shows some good faith on your part. You'll be out far more than $150 when they get mad and move out! You may have kept them happy and saved yourself a vacancy. Who knows. I think there's a fine line between being a landlord and having a personal relationship with your tenants. I'm an advocate of a friendly relationship that keep both sides happy.