In multifamily, rewards programs are driving retention like never before.
The Intrinsic Value of Resident Retention
Losing a resident may seem like a small slip, but in reality, it’s a heavy blow to any property. It’s not just the empty unit—it’s the ripple effect of lost revenue, turnover costs, and the challenge of finding new residents in an already saturated market. For operators, reducing the hefty costs tied to high turnover is no longer optional—it’s a must.
And one of the most effective strategies for doing this? Resident rewards programs, integrated with a digital payment platform.
Multifamily operators, like any business, know that keeping their customers–in this case, residents–happy and engaged is key to long-term stability and financial growth. Rewards programs, common in industries like retail and hospitality, have been proven to foster loyalty.
In fact, 84% of customers are more likely to stick with a brand that offers a rewards program, and 79% are more likely to recommend it. In multifamily, these programs are driving retention like never before.
Rewards in Multifamily
The multifamily industry has been slower to adopt rewards programs compared to other sectors, but that’s changing fast. At the 2024 NAA Apartmentalize conference, an industry survey conducted by Domuso found that 93% of multifamily owners and operators believe a rewards program would benefit their communities.
The reason is clear: offering rewards for actions like lease renewals, survey feedback, and on-time payments keeps residents engaged and happy. And happy residents are more likely to renew their leases.
Residents who feel valued are also more likely to spread the word—both online and in person. This word-of-mouth promotion doesn’t just help fill units; it strengthens the community’s reputation. In today’s housing market, where 40% of multifamily organizations already have a rewards program in place, standing out is more important than ever.
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Best Practices for Implementing a Rewards Program
The key to a successful rewards program is personalization. Not every property is the same, and what works for one community may not work for another. Operators should test different rewards to see what resonates most with their residents.
Whether it’s cash back on rent, marketplace rewards, or amenity upgrades, the reward has to make a tangible difference to the resident’s experience.
Education is also critical. Residents need to know exactly how the program works and what they stand to gain. Clear communication and easy-to-redeem rewards are crucial to maintaining high participation rates. The simpler it is for residents to earn and use rewards, the more likely they’ll engage.
Combining the rewards program with a digital payment platform makes it incredibly easy for residents to participate. And when residents are actively taking part, they’re more likely to renew their lease.
It’s Simple: Rewards Retain Residents
Operators have tried countless methods to keep residents happy, but many have fallen flat or, worse, eaten into profits. A well-designed rewards program changes that. By providing practical, meaningful benefits to residents, operators create real satisfaction—one that adds value both to the resident and the community.
When residents feel valued, they stick around. And when residents stay, operating costs drop, NOI rises, and the community thrives. Investing in a resident rewards program isn’t just about offering perks—it’s about investing in the long-term success of your community.
Source: Multifamily Insiders
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