Landlords and property managers want to foster a positive relationship with renters. It makes our business run smoother and is more enjoyable for all involved. With the holidays fast approaching, this is an excellent opportunity to show appreciation, but is buying gifts for tenants a good idea? Let's weigh the pros and cons.
Pros of Giving Gifts to Tenants
Strengthens Relationships
A thoughtful gift, even something small, can create goodwill and show your tenants that you appreciate them. If the tenants feel a personal connection and see that you care about them as people, not just a paycheck, it may result in better property care and timely rent payments.Encourages Lease Renewals
Tenants who feel valued are more likely to renew their leases and stay longer. This saves you from vacancies and other turnover costs. A gift during the holidays reinforces their positive feelings about renting from you.Creates a Competitive Edge
If you're in a tough market with many options, a kind gesture can build your reputation and help you stand out from the competition.
Cons of Giving Gifts to Tenants
It Usually Doesn't Have The Intended Effect
I've seen many landlords offer homemade gifts or even generous rent reductions. You would expect it to buy some goodwill with the tenant, but it rarely does. These tenants are just as likely to misbehave as those who never receive a gift.Expense Adds Up
Buying gifts, even small ones, can become very expensive if you have a lot of rentals. It’s essential to ensure that your gift-giving doesn’t impact your profitability.Potential for Favoritism
You should treat all your renters equally. Don't give the tenant in Unit A a popcorn ball and then gift a new XBox to the kid in Unit B. They will find out, trust me!Misinterpretation of Intent
Some tenants may misinterpret the gift as a gesture tied to rent payments or other expectations, which could lead to awkward situations. Even worse, they may see it as a sign of weakness, as if you are trying to manipulate them into good behavior.
Tips for Landlords Considering Gifts
- Keep It Simple: A handwritten holiday card, a box of cookies, or a small gift card can go a long way without breaking the bank.
- Stay Neutral: Avoid gifts that could be perceived as personal or that touch on sensitive topics like religion or politics.
- Make It About the Home: Consider practical gifts that enhance the tenant’s experience in your property, such as a toolkit, a fire extinguisher, or a smart thermostat upgrade.
In summary, holiday gifts can be a great way to strengthen your relationship with tenants, but keeping the gesture appropriate, simple, and cost-effective is essential. With thoughtful execution, your holiday gift can be a win-win for you and your tenants.
What are your thoughts on gifting? Share your experiences in the comments below!
