Reward Systems For Good Tenants? Do or Would You Offer It?

[MCS_80]

Hi everyone,

As the title suggests, do you or would you use rewards to tenants for simply being good tenants?

The big billing companies do it by discounting bills by 5% etc to help keep their business and to reward people for doing what they are asked.

Would you consider this?

Just brainstorming ideas and throwing them out there.

Cheers

Mick

 

[Propertunity]

In a word - NO.

Their reward is that:
1. I repair everything that breaks (including the stuff that they broke but did not want to admit to)
2. I wear the risks of paying higher interest rates
3. I will pay the mortgage payments so the sheriff does not come and turf them out on the street
4. I supply a roof over their heads for 1/2 of what its costs me to provide

 

[Rob Williams]

I do gift cards for mine at around Christmas time, when they need it the most.
I charge market rate rental and as I self manage, I save on management fees. I also have a very low turnover of tenants and a zero vacancy rate. So, I figure I'm ahead of the curve enough to give a little back.

 

[rugrat]

No.

Tenants are supposed to be good. And as such I would treat them fairly and allow them to be longterm tenants if they wish. If you give them more, then they are just going to end up 'expecting' more, and if you fail to live up to those expectations (afterall they may think they are a good tenant when you don't) then they may start to feel resentful, and actually become less then good tenants.

Does that make sense?

 

[vbplease]

Mick, have look at the thread/poll titled "are you nice to your tenants?".. I think the general consensus is that it's all about business.. a discount would be out of the question.
I like Rob's attitude whereby you at least give the impression you're not a ruthless landlord..
Mind you, in some cases I think the prop manager deserves the Christmas card, and the tenant doesn't.

 

[MCS_80]

Thanks for the replies everyone, keep 'em coming.

I always believed in business that the person with the cash is the one we take care of? In business the customer is NOT always right, however, they are the MOST important person in a business.

How does this differ from IP tenants?

Im not suggested landlords spend a fortune on tenants, not a cent in fact, just a little encouragment to help keep the wheels greased.

Cheers

Mick

 

[MCS_80]

Mick, have look at the thread/poll titled "are you nice to your tenants?".. I think the general consensus is that it's all about business.. a discount would be out of the question.

Interesting point.

If a discount is out of the question because its all about business, why do so many huge companies base a lot of their business on discounts?

Once again, just my opinion, I do not own any IP's yet, however, have experience in sales and business. This is where my curiosity comes from and am very interested in how the landlord/tenant relationship works.

Cheers

Mick

 

[vbplease]

If a discount is out of the question because its all about business, why do so many huge companies base a lot of their business on discounts?

Such companies like Quantas who have their "frequent flyer points" are running at million dollar profits.. Some ll's are are negative geared and subsidising the tenants accom.. a further discount would be more than generous..

It's a good thing Dazz isn't here reading this thread

 

[Rob Williams]

It's a good thing Dazz isn't here reading this thread

He probably is. He just can't comment

 

[MCS_80]

Such companies like Quantas who have their "frequent flyer points" are running at million dollar profits.. Some ll's are are negative geared and subsidising the tenants accom.. a further discount would be more than generous..

It's a good thing Dazz isn't here reading this thread

So it isnt all business then ?

Can an IP be run as a business if its running at a nagative anyway?

In regards to "rewards", I was leaning toward Gift Card for Xmas, "FREE" lawn mowing service for a limited time etc. Little things like that which many tenants would not expect.

Cheers

Mick

 

[MCS_80]

It's a good thing Dazz isn't here reading this thread

Hahahha..

Why is that exactly?

He a bit of a hard a$$ landlord is he?

Cheers

Mick

 

[kathryn d]

Once again, just my opinion, I do not own any IP's yet, however, have experience in sales and business. This is where my curiosity comes from and am very interested in how the landlord/tenant relationship works.

Cheers

Mick

The relationship always starts good.Then the tenant asks for something more than what the property has, when they signed.(a/c,new screen door etc)
Or, the tenants payday is a couple of days after when they are required to pay.We still need to pay the mortgage on THAT day, no matter what.To the tenant we are rich, so we will take care of it.

Very soon we are the parents and the tenants are our children.
Sometimes you need to kick them out of home.

 

[Propertunity]

I always believed in business that the person with the cash is the one we take care of? In business the customer is NOT always right, however, they are the MOST important person in a business. How does this differ from IP tenants?

Our customer/client is the Property Manager. His/her customers are the IP tenants.

We do not get our hands dirty with the tenants. We are once removed from them and only have conversations with our PM. We buy our PM presents if they do a good job

 

[Rob Williams]

Hahahha..

Why is that exactly?

He a bit of a hard a$$ landlord is he?

Cheers

Mick

You have no idea! They don't come any harder.
Come back Dazz! We miss you!

 

[buzzlightyear]

No gifts, cards, flowers, movie tickets, bottles of wine, hugs or kisses from me. That's for friends and family.

Tenancy and renting are a legal arrangement between myself and the tenants. I have the privilege of their rent, they have the privilege of staying at a property that I own and we both have legal obligations to each and that's where it ends.

 

[Propertunity]

...I was leaning toward Gift Card for Xmas, "FREE" lawn mowing service for a limited time etc.

You obviously don't have any tenants You start doing that sorta stuff and you'll be accused by the tenants of only caring about your own IP - and how you tricked them into getting the lawn mowed. 'That greedy LL only wanted me to tidy up his yard...and he has the hide to call it a present for me ....huff'

 

[peastman]

A property manager once suggested an idea to me which although as yet I have not used, I may in the future.

Included in the rental agreement would be a big screen TV. At the end of the 12 month lease with a perfect payment record and no damages to the property and signing for another 12 months, they get to keep the TV for themselves when they leave.

So what this means for the landlord is that for less than $10PW (tax deductable) the tenant has incentive to stay for 2 years and be the perfect tenant. If they dont, then the same offer could be given to the next tenant, so no extra cost. By advertising "Free Big Screen TV" the ad would get more noticed by prospective tenants if there is ever a glut of properties available.

 

[vbplease]

Our customer/client is the Property Manager. His/her customers are the IP tenants.

We do not get our hands dirty with the tenants. We are once removed from them and only have conversations with our PM. We buy our PM presents if they do a good job

That's a good point.. seeing as though the lanlord appoints a pm, who in turn creates a lease between tenant and pm. LL doesn't even sign the lease..

I might suggest my PM to send a christmas card to the tenant

 

[MCS_80]

Our customer/client is the Property Manager.

Is'nt it usually that customers give us money, not take it?


Cheers

Mick

 

[MCS_80]

A property manager once suggested an idea to me which although as yet I have not used, I may in the future.

Included in the rental agreement would be a big screen TV. At the end of the 12 month lease with a perfect payment record and no damages to the property and signing for another 12 months, they get to keep the TV for themselves when they leave.

So what this means for the landlord is that for less than $10PW (tax deductable) the tenant has incentive to stay for 2 years and be the perfect tenant. If they dont, then the same offer could be given to the next tenant, so no extra cost. By advertising "Free Big Screen TV" the ad would get more noticed by prospective tenants if there is ever a glut of properties available.

Bloody good idea.

Put the word "FREE" into any advertisment and the respsonse is overwhelming in business.

Cheers

Mick