We have one IP and our first tenants have been in for approx 8 months.They keep the place well and I'd be out $400+ if they didn't resign so I was thinking of buying them a couple of gold movie tickets at Xmas . I guess firstly do you think this is a good idea ? Setting a president ? Even better could I claim this on tax ? Thanks
Tax deductible yes Good idea not really Paying the rent is a mandatory, everyday task. Do you reward people for breathing? Long term like 5 years maybe
When an early 20's renter I had a couple of landlords give me Chrissy gifts, bottle of port, box of chocolates. I was the type of tenant who left the place better than I took it on, in particular the lawns & gardens. I believe it's a personal thing, up to yourself, what damage can it do.
Some people shouldn't breath but that's another topic No gifts. Do you get a gift for paying the mortgage? Unless they do something outstanding. I got some young guys a case of beer for putting up a tarp after a big storm
I guess firstly do you think this is a good idea ? Setting a president ? [/QUOTE] Since Australia doesn't have a president, I'm assuming the IP is overseas. Installing your tenant as president is an extreme reward. Is the IP in Cuba?
i gave one tenant half a weeks rent rebate for allowing us to renovate a bathroom while they lived there (9 days start to finish and it was the only shower/bath) there mum lived around the corner. Not a fan of giving gifts i am more likely to work with them e.g. we offered to install A/C in a good 5 year tenant for an increase of $10 per week, this wasn't offered to other tenants.
I don't entirely agree. Particularly in cases where the social circle of the tenant is small, a gift goes a long way to reminding that person that they are appreciated in the world. Such tenants tend to be long-stayers.
Agreed. Surprised by the amount of Scrooge comments, not everything has to be about the financial rewards. Do you not donate if you don't get a tax deduction?
Good point @gman65 . Might as well give the tenant a gift rather than the taxman. Gifts do not have to be expensive. If you keep your eye out all year for appropriate things when they are on special and stash them in a box ready for Christmas time, it can be really low cost. For example, let's say you wanted to do a bottle of something and some nibbles, keep your eye out when you're at your local alcohol store. Sometimes they will have insane deals for a box of something. One example is sparkling moscato. A nice product, has the bubbly factor that people associate with a celebratory occasion such as Christmas, but without the bitter bite (and high price) that can often come with champagne. Think how often your tenant has ever indulged in a bit of camembert cheese and bikkies. Probably never. Right there is an example of a really low-cost present. You can do some sparkling moscato, bikkis, cheese and some choccies for a grand total of less than $20 if you shop correctly. Another idea is a lovely little perfume (or better still, perfume oil) from the Body Shop in a cute little bag if the tenant is a lady. Personally I hate the gift boxes that have a pre-chosen selection of things in them by the store itself. I hate them because they are impersonal and may leave the tenant thinking I didn't put a moment's thought into them. However a nice little perfume in a cute bag is a bit special. One year I got some female tenants a Body Shop perfume that had that vanilla sort of fragrance you associate with holidays in tropical locations. They loved it and as far as they were concerned, they were on holidays in Bali without the inconvenience of leaving their loungeroom.
i have been burnt and tenants sometimes start to think of you as their parent, i have had tenants ring me to change light bulbs or to buy them the lead that goes between their TV and the wall. It also drives the idea i am rich landlord 'who can afford it' when i am tenant myself trying to get **** together to afford a house for my family. I am all for being pleasant and trying to be prompt, but i think gifts can change the dynamic and you should be careful.
Their not the type of tenant to give gifts to. Tenants who not only are never late with rent, paying water account etc (yes expected sim to mortgage), but keep the property in/out in appreciative good/tidy order, can change a leaky tap washer, re-tighten a loose kitchen door screw etc themselves, will ensure retic is working properly fixing any bits that are broken/faulty etc, keep small trees/shrubs trimmed, clean gutters out before rainy season etc etc etc. All things they would do if it were their own home, not simply call/complain/expect very simple tasks to be done just because they pay rent, have a landlord.
I give presents to people I appreciate, who go above and beyond and make my life easy/happy/add value. Good tenants do fall into this category.
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Gifts to tenants are not deductible. This is private expenditure and isnt a cost incurred in production of income. It lacks obligation and isnt a property ownership cost. However providing them with improvements and responsive maintenance is usually and doesnt cost extra. There are loads of way to keep tenants happy. Sometimes you can never satisfy them or have a PM who they dislike but you like.
