Gifts to Tenants: Why & What Should You Give?

 

 

 

Are landlords expected to give gifts to tenants?  It’s a hotly contested topic and one which we are exploring today. We’re discussing the pros and cons of gifts to tenants, the situations when gifts are appropriate and suitable items for these gifts.

Pros & Cons of Giving Gifts to Tenants

Why should you give your tenants a present? Here are the pros and cons of doing so:

Pros of tenant gift giving are:

  • Potentially increase the length of time a tenant stays at your rental
  • reward good tenants
  • tax deductible
  • build positive landlord-tenant relationships

Cons of tenant gift giving are:

  • costs money
  • requires organisation
  • can be expected and if not received, can spoil relations

Occasions to Give Your Tenants a Gift

When is the best time to give gifts to tenants? Often it is thought at the end of a tenancy as a thank you and farewell gift. However, this is not necessarily the best use of the gift. Instead, consider giving your tenants a present at:

  • Christmas – to thank them for the year and wish them well for the next.
  • Move in – a great time to start building a positive relationship is when a tenant moves in. A welcome basket filled with cleaning products and a house plant wouldn’t go amiss.
  • Renewal of rental agreement – as a thank you for renewing their tenancy
  • Problem-solving – if the tenant has notified you early of a potentially major maintenance issue, it’s a great way to show your appreciation. You can also give a gift as an apology for any inconvenience it has caused them too.

Suitable Gifts for Your Tenants

What are the best presents to give a tenant? You may have heard about some landlords offering a free week of rent to their tenants. While this is a lovely thought, it’s not great business sense and not tax deductible. What you should do is purchase a gift which can be claimed back with your tax. A food gift basket is a common present, but you can only claim 50% of it back with your tax. You can find out more information about claiming business expenses on the IRD’s website.

As your property manager, we’re happy to organise gifts to tenants on your behalf. If you’re stuck for ideas, we can help there too. Just give us a call and let’s get things organised.

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