Not only is it almost that time of year where we are making our Christmas lists and checking them twice but there are also occasions where we think: what should we give and what is appropriate?
In the hospitality industry, there are numerous gifts to be given: to clients, to guests, tenants, referals, etc. But what is appropriate and what effect will it have?
In my experience, I've found that the more you give the more is expected. Such is my experience with tenants. First time Susie* called and begged if she can be a few days late on her rent or pay her monthly rent in two installments, I couldn't refuse. She has always paid her rent on time and every once in a while we run into a hiccup in the road. Of course, I accepted. Two months later, she experiences the same problem and again, I accept the late payment and the payment plan. Today, as oppose to calling me and asking, she sends me a text message saying that she'll pay her rent on the 5th and again on the 20th. Did I benefit by giving her a break the first time?
Another tenant, Jill*. Her and I became friends as we had a lot in common except for the fact that she is what is considered poor and I am what is considered rich. Just to be a nice landlord, I have put in a brand new kitchen for her, took her shopping for furniture in her house including a fireplace, bought her lunch, drove her to work, etc. What thanks did I get? She sued me for $2,000!
There are several more stories of tenants, but I think you get the point. So my question is: how far should we bend the rules for tenants? Should we always say no right from the beginnig and save ourselves the trouble of them asking for more later?
Guests are not too different from the tenants as well. Just looking over all the past guests that we have had, I noticed a big trend. The guests that ask for major discounts right from the beginning have been the most trouble. "You give me discount?" Spells nothing but trouble. Some requests that we have received over the past are the following:
*couch is too soft, can we get a new couch
*we don't like the decorative pillows on the couch, could someone come over and take them away
*someones suite was a day late in being ready and we have picked them up from the airport, put them up in the best hotel, picked them up again, moved their luggage, etc and they still asked for a $200 discount when they daily rate was only $65
*the middle part inside the microwave doesn't turn while the microwave is on, could we get a new microwave
*one guest had to be moved to a different suite because their originial suite was flooded. We offered them a $200/night suite for the same price as what they were paying ($65/night) . A few days later the guest called demanding their check! They thought we were going to pay them $200 per night to stay with us!
Although we strive to provide our guests with whatever it is that they need, I wonder if they perceive our generosity as a sign that we have unlimited funds and can pay people to stay with us. We purchased a Maserati so that we can pick our clients up from the airport in style or if they should require driver services. Again, perhaps this gives the clients a wrong imagine as they tend to ask for more discounts and more free services.
So once again, it is the time of giving. Although we like to be generous we don't want to send out the wrong message. Do we give our tenants a gift for Christmas as well as a thank you for paying down the mortgages or will they just think that we have that much money that next month they will call and ask for brand new appliances?
Should we send our clients gifts at the end of the year or will they think that we are making too much money of of them and ask for us to reduce our commissions. How about staff? What sort of bonuses are appropriate without the "can I get a raise" meeting the following month?
So instead of making a list and checking it twice, I'll be making a list and thinking about it twice!
Evelina
Executive Director
www.malibuinvestments.ca
