We all like to give gifts at Christmas, but should this extend to your tenants?

Most landlords want to do the right thing by their tenants, and we always encourage landlords to look after their tenants by addressing issues as they rise, such as attending to maintenance.

But when it comes to gifts at Christmas, there are different factors to consider.

Why landlords should give tenants gifts

• Showing appreciation

Everyone loves getting gifts, particularly at Christmas. Receiving gifts make people feel appreciated, so by giving a Christmas gift, you are letting your tenant know you appreciate them.

• Good business practice

An investment property is your business, and many business owners give Christmas gifts to their employees, colleagues, suppliers and customers. Therefore, buying a gift for your tenant could be seen as general good business practice.

• Keeps your tenant on side

A Christmas gift may help you to maintain your relationship with your tenant. By keeping on friendly terms with your tenants you’re less likely to have a problem with them and it may make it easier to solve any disputes should they emerge.

Some also think a Christmas gift can get relationships back on track if there have been disputes in the year.

Why landlords shouldn’t give tenants gifts

• Tenant feels obligated

Giving a gift may make a tenant feel obligated to their landlord, and they may feel uncomfortable raising perfectly reasonable issues at a later date. Furthermore, the tenant may feel they should get their landlord a present.

• Crossing a line

While your investment property is your business, and business owners frequently give employees Christmas presents, some may consider a Christmas gift crosses a line in the landlord/tenant relationship. There is a potential for the situation to be misread, and for the tenant to take advantage of the Christmas goodwill later in the year.

• Inappropriate gift

When selecting gifts for tenants, it can be very easy to choose the wrong one and end up offending them. There is also the question of how much to spend; too much might be overwhelming, while too little maybe seen as the tenant isn’t worth much.

It’s also worth noting, would the tenant prefer you keep the rent low, or improve the property rather than give them a gift?

When it comes to Christmas gifts, we believe it’s an individual landlord’s decision; a truly good tenant will remain a good tenant even if you don’t buy them a Christmas present, but it’s also nice to spread some Christmas cheer.

If you want to know more about our property management services or investing in property, get in touch.

We’ve helped thousands of people realise their dreams through property and our aim is to make your life easier, so you can do the things you want to do. Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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