Gifts for tenants this year

[Alex Corbishley]

This year more than ever we thought it would be appropriate to give something to our tenants. If you paid on time all year and had been with us since Dec 2019 we gave them $100 gift card to a local business.  Half the year $50.  Cost was only a few hundred dollars, but I think it goes a long way to saying thanks for being great tenants.  

[Joe Splitrock]

Unfortunately the gifts don't really buy you any good will. Tenants expect a landlord to be responsive to fixing problems, keep the property in good repair and stay out of their business. A tenant is no less likely to pay rent on time or stay longer at your property, just because you gave them a gift card. 

If anything gifts can create problems:

1. It creates the expectation that every year they will get a gift and one year if they don't, they become unhappy. My wife had this at work. Every year they got $100 and thought nothing of it. One year they got nothing and everyone was complaining how greedy the company was. 

2. It leaves the impression that a landlord has extra to give. This can send the wrong message to a tenant. For example, if you send a rent increase letter due to rising costs, they will not understand how you had money for the gift but now need to charge them more.

3. It changes the dynamic of the relationship, from a straight contractual relationship to one of friendship. 

4. Some people can be offended by gifts. Maybe they don't celebrate Christmas or the gift is something they don't want. If you do give, it is better to give universal gifts everyone can enjoy like cash, Walmart or Amazon gift card.

As far as what I did this month, one of my tenants got a rent increase letter, one got some siding replaced and another got a new deck. We put money back into the properties, so they can have a nice home. They appreciate our responsiveness and proactive improvements. We treat tenants like gold, but we don't give gifts. Our tenants only move if they have job relocation or buy a home. In either case, I there is nothing I could have done to keep them.