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

[buzzlightyear]

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.

Understand where you are coming from, but what happens if the TV breaks down and is not covered by warranty? Do you need to replace it?

After 2 years, the rate at which technology is advancing and prices falling, then that TV may not be deemed as attractive to the tenant as the new ones. Bit like providing fridges, washing machines etc.....more moving parts, more to potentially go wrong.

 

[MCS_80]

You obviously don't have any tenants /QUOTE]

I dont even own an IP yet

As stated, just throwing ideas out there and curious.

Cheers

Mick

 

[Propertunity]

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

I'd recommend a PM that puts money into your account each month (sure she takes a little to feed herself on the way through, but I can afford it )

 

[MCS_80]

I'd recommend a PM that puts money into your account each month (sure she takes a little to feed herself on the way through, but I can afford it )

Ah, I see now.

A PM is more like a broker then. They help get you money, and take a cut for doing the hard work for you.

Cheers

Mick

 

[twobobsworth]

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.

Not convinced it's about rewarding people. More about improving cashflow for the business.

 

[navjit6]

Not convinced it's about rewarding people. More about improving cashflow for the business.

Yeh they charge like 40-50% extra and then they put a 5-20% discount on it to make it sound like a awesome deal haha

 

[Andrew_A]

A movie voucher at Christmas or a hardware store voucher (hopefully spent on the garden) are my preferred methods.

 

[alplant]

Our RE has a tenant of the month thing going. They pick one every month and give them a movie pass. Our tenants have never picked up the movie pass. We reckon we would give tenants who pay the rent promptly and don't make too many demands for silly things a week's rent free at Christmas. I don't think we are in any danger of having to honour that any time soon, so I don't know if we actually would or not. This thread is making me rethink that anyway. Some good points raised here.

 

[peastman]

Understand where you are coming from, but what happens if the TV breaks down and is not covered by warranty? Do you need to replace it?

After 2 years, the rate at which technology is advancing and prices falling, then that TV may not be deemed as attractive to the tenant as the new ones. Bit like providing fridges, washing machines etc.....more moving parts, more to potentially go wrong.

I think TV's have a 12 month warranty, at the end of the first 12 months the TV is the tenants.

 

[beachside]

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

I think you are looking at this standing on your head - upside down!

The client is the person who buys a product or service, and can take away their custom. Without them there is no business!

Without a tenant the landlord has no income - tenant is client. Same way as without a customer Woollworths has no business.

Without a landlord a property manager has no income. Landlord is their client. We can buy our product elsewhere - find another PM.

Sure, the PM gives us money - our money which they collected for us and charged us a fee - this is what we hired them to do.

Looking at this the wrong way will having you kissing the wrong butt and peeing on the wrong shoe

 

[Born&Bred]

As a tenant atm and looking and researching for my first ip for the last year, the rewards systems being talked about in this thread seem ludicrous to me.
As a long term good tenant all I expect is minimal rent increases and any genuine maintenance issues delt with, oh and a PM that can do their job properly!
With any rewards system only the people/tenants/employees that have no hope of sticking to the basic requirements will cry the hardest when other people get the rewards and they don't .
So imo reward systems are a bad idea.

 

[cgw]

I buy the Entertainment book, which has lots of vouchers in it, and I give these out to my good tenants at Xmas.
One of my tenants is so good, she dobs in the PM, if the PM does not do proper inspections.

 

[dusty]

I personally rent, and if I can say so myself, I'm an excellent tenant. I keep the house spotless, maintain the gardens, pay rent early, etc. and in return (so I like to think) - both in my current house and previous - the LL kept the rent well below market, with small yearly increases rather than tracking it closely.

I also have 2 IPs myself, and in one in particular I have resisted putting the rent up to market because I have a great long term tenant who keeps the place in great condition and pays on time, and I don't want to force them out and risk vacancies and/or worse tenants.

I think that many Land Lords do reward good, long term tenants in this way without really thinking about it in the same context as something that you explicitly offer like a "X% discount" or movie tickets or a free TV.

Just my 2 cents...

 

[kathryn d]

I think that many Land Lords do reward good, long term tenants in this way without really thinking about it in the same context as something that you explicitly offer like a "X% discount" or movie tickets or a free TV.

Just my 2 cents...

I agree with this statement

 

[Whozat]

the LL kept the rent well below market, with small yearly increases rather than tracking it closely.

.......

I think that many Land Lords do reward good, long term tenants in this way without really thinking about it in the same context as something that you explicitly offer like a "X% discount" or movie tickets or a free TV.

Just my 2 cents...

Yep, that's the way it happens with me. Did give movie vouchers once with a note thanking the tenants for taking good care of the property. Might have brought about a bit of good will, but a much later conversation with the tenant suggests that my keeping the rent under market value impressed them a whole lot more.

For those good tenants I am currently considering how I might improve the property in a way that would specifically benefit them, kind of like a reward, and ultimately benefit me (the property) as well.

Any not too expensive suggestions say under $400.... ?

 

[AndrewT]

I think that's the way to go about it. Look at improving something on your IP thats going to benefit not only the property but the tenant aswell. Keep it of low value, otherwise you would want to put in a rent rise along with it and I don't think they will see you as a good landlord then!

If we didn't have to move into our place (FHOG), we were going to look into getting a couple of ceiling fans installed in the bedrooms since the tenants have been great and I'm sure they would have appreciated it.

Ultimately, the LL is doing the tenant a favour by renting out the IP and the tenant is doing the LL a favour by paying rent.

 

[Hooray]

Ultimately, the LL is doing the tenant a favour by renting out the IP and the tenant is doing the LL a favour by paying rent.

So when you go to maccas, do you think you're doing them a favour by buying a burger, and they're doing you a favour by selling it to you?

 

[Piston Broke]

Stores give the perception that they have sales & discounts so that they make more profit not less.
Tenants what a good home at a reasonable price. A "free tv" will attract will not attract better, but worse tenants, the good ones will think it's desperate and there's something wrong with the neighbours or sumthin.
I'm on record here for saying that good tenants are your customers and should be treated fairly & respectfully.
And if something can be done that is mutually beneficial, then it's great.
Eg I once had a tenant ring and ask if he could paint the back shed, I replied "sure I'll buy you the paint, how much you need?" he said a 20ltr tin would do but the next day I turned up with 2 x 20ltr tins of paint. And sure enough he painted a few other things as well. Everyone is happy.

I agree with the ceiling fan type improvements as well.
But it's not a bout doing favours, it's a business transaction.
A buyer has a need, a seller fulfills that need.

 

[josko]

I always give my tenants Christmas gifts.

Usually Movie Tickets.

Regards JO

 

[skater]

I don't give tenants gifts. Never have! I don't think I ever will!