It's up to you
Firstly there is no requirement to buy your tenants anything. But is there an expectation? There is no clear answer, and it's hugely personal and also depends on your relationship with the tenant.
Yes, tenants have an obligation to look after your place and pay rent on time. But you can choose to show your appreciation by giving small gifts to reward good behaviour or use it as an opportunity to improve your relationship with tenants.
Can I claim it on tax?
Generally speaking, gifts to tenants would be tax-deductible. BUT this depends on what the gift is.
If your gift contains food or drink (e.g. a bottle of wine, a hamper with food, or a box of chocolates), you can only claim a 50% deduction.
A non-edible gift like a gift card, flowers, or movie tickets can be deducted in full.
While offering a free week's rent is a lovely idea. Unfortunately, it's also not tax deductible.
Alternatively, you can consider offering the tenants a new appliance if the current one is to be replaced. It makes for an excellent gift for tenants that will surely be appreciated and also improves the value of your property.
If your property manager is doing a good job and you choose to send them a gift, this expense is also likely to be tax-deductible.
A small gift can make a big statement to your tenants and allows you to connect with your tenants in a new way.
We recommend you always seek independent tax advice regarding financial matters. The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not, and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
