Additionally tenants expect to pay market rent you are simply gifting them $50/month.The value of tenants money is the same whether they like their landlord or not.

This is literally the worst advice you could possibly listen to.Being gifted a free San Diego home and selling that equity to buy equity in lower quality markets is a sucker play.Greg's funky math above:- Subtracts opportunity cost from actual cash in order to validate his claim that this property is "negative cash flow"- Does not consider rent growth.  

I was thinking of a gift card for a dinner or maybe a place like Target for supplies in a card or gift basket.

If you want to help them, consider doing it in a way that doesn't jeopardize your investment: offer to pay their moving expenses, provide their security deposit, or gift them a months rent for their next property, Aside from that, I think something you may need to be weary of is the possibility that the seller gave you an owner-financed property at a 20+ cap because he, too, has been put in a bind by these tenants; and likely could have even known that you were inheriting an essentially built-in problem. 

After it's all cleared up send them a gift certificate for a nice restaurant and thank them for their understanding a patience.If it was in the winter I would put them in a hotel or provide space heaters and give a rent rebate.

If it's from a family member/friend, you have a little more flexibility, as the lender will likely allow you to use those funds as long as you're able to procure a 'gift letter;' which is signed by both you and the family member/friend and states that all the funds exchanged are being gifted to the borrower and that they have absolutely no obligation to pay it back.

Makes no difference to me at the end of the day.Whereas most of the landlords on this forum are doing their level best to maximise every penny from a tenant, I'm not exactly poor, I don't need to extract every penny out of tenants.We did have a couple move out this weekend, they spent two years with us, and not only will they get all their deposit back, we will send a house warming gift also.

To participate one must have vision...and $10,000 (right off your taxes as a gift)...many wealthy do to lower their tax bracket.

They do have a natural "gift" for protecting their pack/territory.

I have already gotten them a welcome gift bag prior to them moving in- since they just had a baby, I got them a baby outfit, a large wall decal for the nursery, and baby cleaning supply..