What if there are no movie theatres in your IP town and the gardens…well no gardens grow there it’s too damn hot. What do I get my tenants? *gulp* A coffee mug with my face on it or better still my a$$.
Help.HiTinkerbell,
Thought I would share with you what I do for my tennants. Rather than gifts as they go along the lease, I usually start with something at the beginning of their lease. I add those little touches like toilet paper in the toilet, nice smelling scents in the bathroom and I leave a bottle of wine with a note on the kitchen bench saying something like “Hope you enjoy your new home”. I do this cause I feel that if I treat people with respect or like I would like to be treated they may feel at home then they may look after the house a little more like its their own. No analysis to say this works but I havn’t had any problems so far. I don’t think it actually keeps your tennants there forever but may help start off the relationship well. I then leave the rest up to the property manager, usually getting them something as well if they have done a good job, nothing large, sometimes just a small note of appreciation is enough – everyone likes recognition for a job well done.
Hope this helps.
Cheers,
[happy3]Fluffy
Hi Fluffy,
That is a nice gesture!!
But if I am not being too nosey (if I am, please feel free to disregard my question) but am I correct in assuming you only have the one IP in which you make provide these little gifts? If there is more than one IP, do you do this for each, and regularly or is it a “once off” only gesture?Cheers,
Jo
We own 4 houses and we send each tenant (who is up to date with payments) 2 passes to the local cinema each month. I was actually wondering only the other day if it was worth it when my younger brother called to tell me that he had met one of our tenants at a party. Without letting on that he was related to me he asked about the house she lived in etc. She told him that she was actually going to move to a larger house but was delaying it as long as possible because she had these great landlords that kept sending her movie tickets if she paid the rent on time. My brother asked how long had she been intending on moving for. The reply – 18 months now!! I’d say that the extra $240 per year had been covered.
In response to Monopoly (I know you didnt ask me but I’ll respond anyway) we put toilet paper, nice smelly things around the house, bunch of flowers and a basket (varies in size depending on if 2 br house or 5 br house) with all the “first night essentials” (tea, coffee, cups, milk, sugar, tissues, chocolate etc etc etc) in each house every time a new tenant rents one of our houses. It also includes a welcome note with all the nice to know things in it (garbage night, utility phone numbers, council services, movie times – the list grows every time we do it). We have had such positive responses to this and it’s great to have tenants start off on a positive foot. Makes them feel like the place is their home and they are welcome – they’re not just a money source for you!
I think sometimes we keep tenants so much at “arms length” that we miss the chance to provide that good customer service thing that we all complain doesn’t exist any longer. Remember we are all running small businesses whether we own 1 house or 130!!!
Hi Malachii,
Thanks for the reply, and it’s cool, whether I asked you directly or not, it was nice of you to bring it up.
Please don’t get me wrong, I am not opposed to the idea of doing nice things for tenants or providing gifts, I used to do the same. I did however have an unfortunate incident and became disillusioned with such niceties, that now I don’t (see one of my earlier posts in this very thread if you haven’t done so already, and are curious as to what I mean).
All I am saying is “beware” that all the effort you are putting in, as long as it pays off, that’s fine, but you may not always be so lucky!!! Yes it is a business, but haven’t you ever heard of “never doing business with friends”???? The relationship between a tenant and a landlord/lady is a sensitive one, and can run hot or cold, just be careful, that’s all.All of you who do such nice things for your tenants are IMO, just nice thoughtful people, and I hope none of you ever get “burnt” as I did. Keep up the good work.
Jo
Understand where you are coming from Monopoly – we have been burnt a couple of times too (once to the tune of $9000++ – oh well). You can do these things without becoming to “close to the tenants” though. We contact the rental agent at the end of the month to make sure the rents have been paid and then we post the tickets – no actual contact with the tenant at all!!
I’d have to say though, we’ve been doing this for probably about 5 years now and all the “difficulties” we had I think we would have had anyway – but in the back of my mind I think that there would have been more “difficulties” if we hadn’t done it. Does that make sense??
Yes Malachii,
It makes sense!!
As I said, I am not against the idea, just sceptical of the value in doing so over the long haul of the tenancy. But at the end of the day, there are good and bad tenants, and if you get a good one these days, it is not a bad thing to encourage them to stay.
My way of “rewarding” is different, but just as effective, and I get capital improved value at the same time, so it’s a real win, win situation. At different times I will repaint, re-carpet, update kitchens/bathrooms, add built in robes, update water services, get the garden done etc….all the stuff that adds value, is tax deductible, justifies a small rental increase, and keeps tenants happy.
Cheers,
Jo
Hi Monopoly,
Not being too nosey at all – I have 3 IP’s currently and only usually do this as a one off with every new tennant. I find it adds a nice touch. I have had feedback from my landlord that they seem to appreciate it and some have sent their thanks via them to me. One tennant in particular prunes all the tree’s for me and even pulls weeds out of the grass to try to keep the lawn looking nice – saves me from hiring someone or doing it myself.
Again, nothing substantial enough to say they would not have done this anyway. I understand in wanting to keep it as business not personal, not forgetting that customer service also plays a vital part in business though. I think that if you can put a picture in the tennants minds about you not being the horrible landlord then this may help too.I agree that the property Manager is the key though and if you have a good relationship with them and reward/praise them when necessary they will look after your interests too.
My outlay on these items is not a lot only aprox $15 with each new tennant and I have also replaced items or put in fans etc for tennants. Seems to keep them happy and is then tax deductible.
Cheers,
Fluffy
Thanks Fluffy,
I appreciate your reply, and even though I have gotten burnt (literally….LOL) I don’t see any harm in what you and others do as a “nice gesture”. I am sceptical as I have already outlined, and although I always try to be pleasant to my PMs, thesedays I am a bit more reserved about how close I get to them as well.
Anyway, happy landlording/ladying…[biggrin]
Take care,
Jo
Hi Fluffy,
I really like your style!! If I moved into one of your properties I would be really impressed. Whilst it is ultimately a gesture that works in your favour, I am sure the tenants genuinely appreciate it, and there is some idealistic value in this also. Thanks for the great idea. (Jo, your warnings are noted though! Thanks also.)
Can I reiterate one of Tink’s original questions however: what do you sign your ‘welcome’ card with? Do you maintain full anonymity?
Appreciate your help!
Ali G [biggrin]
my $0.02 worth
I work in IT and consult to c-level management and often hear our clients and prospects complain that we fail to listen to their needs and foster partnerships. Whilst I’m new to property investing I will be utilising a number of disciplines and lessons I’ve learnt in my investment diversification adventure.
My main claim to fame in IT consulting is business risk management around the IT security space e.g. hackers crackers and all that wonderful Hollywood stuff with Hugh Jackman
Seriously it’s all about reducing your risks to a tolerable level. Whilst we can’t always successfully foresee the future and how our tenants might be, I think that there are several key steps that we can take to minimise the threats to our investment.
Like everything in life there are inherent risks, but with people I think that good social science and common respect goes a long way to protecting our investments, especially when it comes to something as personal as residential property investment. I do like the idea of rewards and or incentives; we all like the carrot and not the stick – right? What I might add is the need for us as investors to listen carefully to our customers and understand what their ‘unique’ needs are, and better understand what our intangible responsibilities are. We’re all looking for a point of difference aren’t we?
Summing up my waffle:
Do onto others as you’d have them do onto you,
Investment made in knowledge and curtesy is a cost effective way to minimise our exposure to threat sources like rouge tenants.Later..
SquashOriginally posted by ManicSquash:Do onto others as you’d have them do onto you,
Investment made in knowledge and curtesy is a cost effective way to minimise our exposure to threat sources like rouge tenants.Oh pleazzzzz!!!! [wacko]
I’m sorry ManicSquash but I hope you never go through what I did, for if you had seen how sad my house looked as the last remaining embers continued to burn…..(no offense here, but) you wouldn’t say to my face what you wrote in your post!!! Here’s the advice of someone who walked through the ashes of what once was a beautifully restored Victorian masterpiece, that had it still been standing today, would’ve been heritage listed:
PLAY IT SMART – GET A PM, and KEEP YOUR LANDLORD-TENANT RELATIONSHIP STRICKLY BUSINESS LIKE. You want a friend, join a social group!!!!
Jo
Fare enough Monopoly, I respect your view as I’ve never had such a situation occur to me and hope it never does. I can only imagine that it would be extremely painful to experience.
I guess that’s the beauty of the world that we all have different views and opinions for different reasons.
My final take on this is that the tenant is a vital element in successful property investment. That said I’m not advocating you invite them around for xmas but making them feel respected can’t help whether that be through the PM or through direct contact.
ManicSquash,
Firstly, I wish to clarify that my post was NOT a personal attack on you and hope you did not perceive it as such.
If my comment appeared cold to the notion of “rewarding” tenants, then that’s great!!! Yes, experience has hardened me; I make no apologies for it, and will challenge anyone who has been through what I have, and who still wishes to dispute my stance.
In regards to my post, if it reaches ONE person who can learn from my misfortune, then I will feel justified in my bluntness!!!
From what you have said, you are new to property investing. I envy your enthusiasm and admire (and encourage) your willingness to be a responsible landlord. However, as “warm and fuzzy” as it may be, don’t let this cloud you to the reality that not everyone will return your goodwill. If you think tenants and disgruntled IT customers should be treated the same way, go for it….who am I to tell you otherwise???
Be fair, and just, but most of all, be professional (that is, keep a respectable distance between yourself and your tenants) and you shouldn’t (fingers crossed) have too many problems.
Happy landlording!!!
Jo
No drama’s Jo, I’ve got rather thick skin so I didn’t take it personally. I’m not shy of having an opinion [reminds me of what my mama use to say: opinions are like a*seholes, everyone got one and most of them stink
].I guess that’s the benefit of having a forum where individuals with an interest in PI can share ideas, thoughts and experiences and hopefully learn from each other to better minimise our risks and maximise our opportunities.
I feel I’ve done a fair amount of research into PI so far and I’ve learnt one thing – I know jack all. You’re spot on about me being enthusiastic, maybe too enthusiastic in that I should spell and grammar check my posts before making them
Seriously, I’m new to PI (as mentioned previously) but already I enjoy the human element as my investing to date has been in the share and money markets with both neither have the same level of human involvement.
Anyway I’ve babbled enough… enjoy the rest of the day
Squash
Squash,
It doesn’t matter how long someone has been investing for. Perspectives are an entitlement around here. You’ll see many viewpoints, and the “hard versus soft” landlord notion, has been raised a number of times, and each investor has different ways of seeing it. To me, it doesn’t matter how many times I have difficulties with real estate- I presume I’ll always have the same values around it. To some, that may be seen as not learning or something… to me, it just means not losing sight of the bigger picture or becoming bitter. “Doing unto others” has got to be a good thing, in my world. It’s an old mantra, and I ain’t no Christian, but the words still make sense.
Welcome to the Forum by the way- we’re generally a polite bunch
kay henry
Kay,
Squash and I have discussed this outside the forum and he knows I meant no disrespect. And much to your surprise, I too believe in “do unto others” just that experience has hardened me. However, I don’t believe that because someone is “soft” they haven’t learnt anything, it is just how they prefer to do things.
And I will trust you to keep your snide inference re general politeness (or lack of) outside of this forum.
Jo
We ARE generally a polite group, but sometimes we all slip up here and there. It wasn’t directed at you, Monopoly, and it’s been said in the same way many times before on here when someone crosses the mark. I found you saying to a new member, “You want a friend, join a social group!!!!” to be impolite and unnecessary, personally and have made my own response to it.
kay henry
Hi Kay, firstly thank you for the welcome.
I didn’t take Monopoly’s comments personally and I think that sometimes its good to hear stories from the trenches – like a reality slap as after all this is not Monopoly (sorry no pun intended) money we’re playing with. It’s important to hear these different points of views and sometimes, as I am often guilty of, we can lose our point in being too polite.
Squash
Shall I quote some of your replies Kay????
I think not; snide digs are both unnecessary and immature. My “you want a friend, join a social group” was not directly aimed at Squash, but you couldn’t resist the opportunity to make it so.
Thank you Squash, I appreciate your efforts and understanding of my post.
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