Incentives For Tenants To Take Care Of Property?

Question

I know your lease agreement should list what happens if the tenant does not take of a property or damages something, but I'm curious what some of you have thought up to add an extra incentive to motivate tenants to take care of the property?

Also, what are some additional things you check for on the front end to rule out possible tenants that may not care for a property or cause more issues? I'm aware of calling previous landlords if the tenant list them, and employers, etc., but just trying to see if anyone is applying a new/different approach that has proven successful?

Nathan Gesner · Answer

It sounds good on the surface, but why do you feel renters need to be rewarded for doing what they've agreed to do? Nobody hands me a cookie and pats me on the head for not robbing a bank or smoking crack. I do what I'm supposed to do and my freedom is my reward. I pay my utility bill and my lights stay on. I pay my mortgage and my key continues to work in the door. The tenant pays their rent, they have a place to live and a Landlord that treats them fairly and honestly.

What if you're busy rewarding the tenant for mowing the lawn or paying rent on time and then six months later you inspect and discover their dog has trashed the carpet or dug up the lawn? You could spend a ton of money rewarding the good behavior while they're secretly violating the lease in other ways and costing you even more.

Sharlene Mulchandani · Answer

@Robert Smith Incentives to motivate tenants to take care of the property are always a good idea! I suggest providing them with some cleaning supplies or equipment to help them keep the place neat and tidy.

Nathan Gesner · Answer

There are different opinions. In my experience with hundreds of rentals, incentives are more likely to create a sense of entitlement and more demands with no guarantee of better performance by the renter.

I manage properties for dozens of owners that kept rent low or gave gifts (including free rent every December as a Christmas present!) to incentivize their Tenants. They still had tons of problems and lost tons of money with this technique. In almost every case, their properties are nicer, they have higher-quality renters, and they make more money each month AFTER they pay my fees. Run it like a business, not a friendship or charity.

Ned J. · Answer

I'm with Nathan....... once you go down the "reward" path, there is no turning back...... once you don't reward them, they feel entitled to it and get mad when you dont....

The reward is you provide them a decent place to live and hold up your end of the relationship... you deal with issues and fix things etc in a timely manner.......you maintain the property...... you don't harass and threaten them over small issues.... you act and conduct your business in a professional way..... that's it.

The only reward I may give is a little mores slack if some issue comes up....... been a great tenant and taken great care of the property and been there for years....... ask to paint a room, new stove, be a day or 2 later on the rent for the first time..... I may say "no problem" and work with you. Thats about it......

Jesse Mancuso · Answer

This might seem like an overly-simplistic suggestion but maintaining the property and providing a safe, clean home for tenants goes a long way in motivating people to do their part. There are some great suggestions above and I also recommend inspecting the property a minimum of twice per year/lease. Showing your interest in the property and maintaining things appropriately has served me well with all my tenants. Best of luck!

Robert Smith · Answer

@Nathan G.

10-4, and thanks for sharing your experience and wisdom.

Robert Smith · Answer

@Nathan G.

Great points.

I suppose my thinking is similar to if I was running a company and understanding that if my employees are happier to be at work, chances are the majority will be more motivated to perform even better than expected thus helping the company succeed (I.e better health benefits, onsite food options, weekly employee recognition, free coffee, onsite free gym access during breaks/lunch, etc.).

I know none of these items are required and there is a chance some may try to take advantage, but I would think it should improve the overall employee morale.

So this may be the wrong approach to take with rentals, but just giving insight of where the idea was inspired from.

Thanks for sharing.

Incentives For Tenants To Take Care Of Property?

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