For some landlords, giving gifts to tenants is a positive action. However, there are pros and cons to gift-giving. What is always an advantage is maintaining an excellent landlord-tenant relationship. A good relationship can positively affect the goodwill and the bottom line of your business.
If you’re a landlord and wondering whether to give gifts or not and, if you do, what gifts to give and when to give them, keep reading for insights that will be helpful.
What Is the Purpose of Giving Gifts to Tenants?
On the most basic level, the custom of giving gifts exists because we’re supposed to. We are trained through life that giving gifts on special occasions is the right thing to do. Gift giving is primarily done on birthdays, anniversaries, holidays when one isn’t feeling well, and being a guest in someone’s home.
If we take “supposed to” out of the conversation, then what is the purpose of gift-giving, and how, as landlords, can we use this practice with our tenants?
What Does Giving Gifts to Tenants Mean?
If you’re a smaller property landlord and know your tenants through frequent small talk because you’re around more often, then gift-giving may be a more personal touch.
You may know your tenants well enough that you like them, appreciate them, and want them to stay not only because tenant retention is good for business but because you like having them around.
In this case, giving a gift can be a gesture of goodwill, appreciation, and showing a level of interest in your tenant and their life. But, of course, gift-giving should always stay professional, and showing interest in someone else’s life isn’t out of bounds.
If you’re a landlord of a larger property, it may be more challenging to get to know your tenants, although you may have a few favorites.
In this case, giving gifts to tenants can be done professionally during the holidays, New Year’s, or even birthdays. Here are some affordable holiday gift ideas.
Are you considering whether to give a tenant as a gift? The pros and cons depending on your point of view.
The Pros and Cons of Gift Giving
If you choose to provide tenants gifts, there isn’t a “right” gift. Depending on your situation, there are pros and cons to be considered.
Tenant Gift-Giving Pros
For some landlords, giving gifts is fun and a thoughtful way to show appreciation while staying professional. For them, gift-giving—
- Shows appreciation for your tenant and your desire to keep them happy.
- Helps you maintain a positive relationship with them throughout a year
- Can keep everyone on friendly terms. If your tenant feels safe living at your property, they are more inclined to renew their lease.
- Helps repair any relationship after there’s been a miscommunication or problem.
Tenant Gift-Giving Cons
Some landlords feel that giving gifts is unprofessional. For them, giving gifts can gray the lines between a professional relationship and a friendship. For these landlords, gift-giving—
- Can appear to be a bribe, and they don’t want to take the chance of appearing as though they are bribing their tenants
- Can be dangerous if they select the wrong gift and end up offending their tenant
- Sets a precedent that they don’t want of how gift-giving will always be on their property
- Can be seen as using money that could otherwise go to property improvements, and some tenants will be resentful.
Whether you’re a landlord of small or large properties, you may also see gift-giving as a way to thank tenants for their stewardship and cooperation. For example, do you have tenants who always pay on time? Do you have tenants who make a concerted effort to take care of the property, i.e., picking up trash when they see it, helping a neighbor, etc.?
Here are some excellent ideas for tenant appreciation gifts.
Tenant gift-giving can be an integral part of your property management practice. During the holidays or New Year, you can give annually to thank your tenant for their business or any day of the year to show your appreciation for their care and concern while being residents.
A Final Thought
One last way you can show appreciation to your tenant while also helping the operation of your business is to make online rent payments easy. You can go to PayRent, sign up, and invite your tenants to pay their rent using the app.
Online rent payment using PayRent makes paying rent easier for your tenants and more predictable for you. A win-win situation.