Additionally, I mentioned that I had sent them a small holiday gift card as a token of appreciation (which I send to all of my tenants) and wished their family a peaceful and warm holiday season.Your insights helped me craft a response that balanced kindness with maintaining boundaries, and I truly appreciate it.

I would recommend matching old reservation rates and offering free gifts to secure good reviews and booking momentum. 

There are no tax deductions for such gifts, however you have a $15k per recipient annual gift limit that avoids the chore of filing a gift tax return.

If it came from your parents, you may need a gift letter from them stating that it's gift and does not need to be repaid.

The banks treat it as if the borrowers gift it to them.

  $500 off up front is a one time discount, the $40/month lower is the gift (to the tenant) that keeps on giving. 

They keep rent low, give gifts and homemade cookies for Christmas, make upgrades whenever the tenant requests,  accept all the late rent excuses, etc.The truth is, your tenant is not your friend.

Could you gift the down payment to your mother in law so she can buy it and then transfer title to you when your house is done?

I like to schedule a time to drop off a Hickory Farms gift basket before the holidays.

I’m almost 65 I have about 3 million in property and am strongly considering finding a non profit I believe in and gifting 2 million to them- you don’t have to pay taxes if you do that but they’ll take 5-10% of sale.