Is it considered a kickback ifI put tenant’s names in a drawing once a month for a $50 grocery gift card for those who pay on time?

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Is it considered a kickback ifI put tenant’s names in a drawing once a month for a $50 grocery gift card for those who pay on time?

Asked on March 13, 2012 under Real Estate Law, Massachusetts

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I do not consider a drawing placed once a month for those tenants who pay rent on time to receive a $50.00 grocery card if selected as being an improper kickback. I view the drawing as a good business decision to encourage timely payment of rent by your tenants where those that pay timely have an opportunity to be rewarded with a gift card if their name is drawn.

The law would support my opinion as well.

 


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