Property Investment Tips: Giving tenants a Christmas gift

By the resi financial blog team, 15 December 2014

Property Investment Tips: Giving tenants a Christmas gift

Yes, it is almost Christmas! If you managed to find great tenants this year, you may want to show your appreciation for their tenancy with a small gift. Why would you do this? Here are a few good reasons to spread a little Christmas cheer this year.

1) Reduce turnover

If you've found a brilliant tenant who pays rent on time every week, never causes complaints and generally keeps your property looking good, chances are you don't want to lose them. A good tenant can be considered an asset, as bad tenants are certainly a liability.

A small Christmas present, like movie vouchers or a bottle of wine, could go a long way to establishing a deeper bond with your tenant, which may make them feel more inclined to stick around another year. People like to feel appreciated and good landlords, like good tenants, can sometimes be hard to find.

2) It's tax deductible

An expense incurred while generating income is generally considered tax deductible. According to Property Tax Specialists, a small gift to your tenant or even the real estate agent who maintains your property is tax deductible. The net gains from fostering a good relationship don't hurt either.

Make sure to keep the receipts of gifts bought for renters, property managers or anyone else related to your rental income.

3) It makes you happier

According to the Harvard Business School and several other high-ranking research universities, spending money on others is positively associated with increasing our own happiness. It seems the human brain is wired to encourage social behaviour and gift giving is no different.

Giving an unexpected present to your tenants could seriously elevate your own happiness, as well as theirs, and would make for money well spent all round.

When it comes to planning the best way to use your money, getting some professional hints and tips can be extremely rewarding. Pop into your local resi branch today to find out more.

Categories: Financial Services, Property Investment