The multifamily industry is facing a set of persistent challenges that have only intensified in recent years. Occupancy rates, resident satisfaction, digital adoption, and online reputation are key areas where success or failure can dramatically impact a property’s performance. As these issues come to the forefront, resident rewards programs are emerging as a critical solution, not just a passing trend.
At Apartmentalize 2024, Domuso spoke to over 100 key decision-makers across owners and operators, to get to the heart of what’s keeping them up at night, and why rewards programs are seen as such a key piece in many of their strategies.
1) Occupancy
No surprise here. High occupancy rates are the bedrock of a thriving property, but achieving and maintaining them isn’t easy. Empty units mean more than just lost revenue; they also strain your ability to reinvest in property improvements and retain top-tier staff.
How rewards programs help: By fostering loyalty, encouraging lease renewals and resident referrals. When residents are offered meaningful rewards—whether it’s perks for on-time rent payments or incentives for renewing their lease—they’re more likely to stay. This not only stabilizes occupancy rates but also reduces the costly churn of resident turnover. By cultivating a community where residents feel valued and connected, rewards programs can transform occupancy challenges into a foundation of stability and growth.
2) Resident Happiness
Happy residents are the heartbeat of a thriving community. They stay longer, refer friends, and contribute to a positive atmosphere that’s contagious. When residents feel unappreciated, they’re more likely to move, costing time and money in finding replacements.
How rewards programs help: By offering a proactive way to boost resident satisfaction. By including incentives such as cash back on rent, marketplace perks and amenity upgrades, reward programs elevate the resident experience from good to great. This sense of recognition can significantly extend the average length of stay, turning satisfied residents into long-term community members, and over a third of survey respondents pointed to this as the main advantage of resident reward programs.
3) Digital Adoption
Digital tools are essential for modern property management, but getting residents to adopt them can be a struggle. Traditional payment methods and manual processes not only slow down operations but also increase the risk of fraud and errors.
How rewards programs help: When residents are rewarded for using digital payments they’re more likely to use them. It’s that simple. This not only streamlines property management but also enhances the resident experience by offering convenience and efficiency. Properties that successfully integrate rewards with digital tools often see a marked increase in digital engagement.
4) Online Reputation
In today’s digital world, a strong online reputation can set you apart in a competitive market and draw in potential residents, while negative reviews can deter prospective residents.
How rewards programs help: By incentivizing renters to complete feedback surveys, you can more easily identify happy residents and encourage them to post positive reviews. Plus, by offering a rewarding and positive living experience, you’re cultivating happy residents who are more likely to leave positive reviews. Picture a steady stream of glowing reviews from satisfied residents, creating an online buzz that attracts new renters and strengthens your community’s image. In a market where online reputation can make or break your success, rewards programs offer a strategic advantage that goes beyond simple perks.
Conclusion
The multifamily industry’s challenges are somewhat broad, but rewards programs have the ability to address many of the main priorities of both owners and operators. So it’s no surprise that over 90% of the decision-makers surveyed stated that they see value in rewards programs, and almost half were either already running them or reviewing their options. It may feel like a trend, but reward programs are most likely here to stay - increasing resident happiness, occupancy, digital adoption and online reputation.
For multifamily owners and operators looking to take their properties to the next level, embracing the full potential of rewards programs is a must. Ready to learn more? Download the full survey data report to dive deeper into how rewards can transform your property’s performance.
