With a volatile market and the constant pressure to maintain high occupancy rates, finding effective strategies to attract and retain residents is critical.
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With a volatile market and the constant pressure to maintain high occupancy rates, finding effective strategies to attract and retain residents is critical.
With a volatile market and the constant pressure to maintain high occupancy rates, finding effective strategies to attract and retain residents is critical.
In the multifamily industry, occupancy remains a top priority for both owners and operators. With a volatile market and the constant pressure to maintain high occupancy rates, finding effective strategies to attract and retain residents is critical. One highly effective approach is the implementation of resident reward programs. These programs not only address the key pain points but also align with the broader goals of improving resident satisfaction and community engagement.
Occupancy rates are the lifeblood of any multifamily property. According to NAA, the cost of resident turns is about $4,000 per unit, including lost rent, concessions, and maintenance. For owners and operators, this makes reducing churn crucial for generating steady rental income and ensuring the financial stability of their properties.
Maintaining high occupancy rates can be challenging, especially in competitive markets where residents have numerous options. And it’s no surprise that recent data shows occupancy is the number one focus for both multifamily owners and operators.
However, retaining current residents and attracting new ones requires more than just competitive pricing—it demands a holistic approach that considers the resident experience at every touchpoint.
Resident reward programs have emerged as a powerful tool to address the occupancy challenge. These programs offer tangible benefits that not only attract new residents but also enhance the experience of existing ones, thereby increasing retention rates.
1. Boosting Resident Retention Through Renewals
NMHC’s 2024 industry benchmarks report found that 46% of renters did not renew their leases in 2023. By offering incentives for lease renewals—such as cash back, amenity upgrades and marketplace rewards—property managers can significantly reduce turnover and maintain stable occupancy levels.
According to industry insights, multifamily leaders believe that one of the primary benefits of reward programs is the positive effect they have on renewals. When residents feel valued and appreciated, they are more likely to stay where they are and become more engaged, building a stronger community.
2. Driving Organic Growth Through Referrals
Reward programs play a pivotal role in creating a positive experience that drives overall satisfaction and exceeds expectations. By offering meaningful incentives, these programs encourage residents to stay engaged and foster a sense of appreciation.
When residents are happy with their living experience, they are more likely to recommend the property to friends and family, driving organic growth through referrals. The added value of well-designed reward programs strengthen these recommendations, making residents enthusiastic advocates for the property.
3. Attracting New Residents Through Online Reputation
Prospective residents often rely on online reviews and ratings when choosing where to live. In fact, a report by Criterion B, found that 93% of US apartment seekers have used online reviews during their rental property search.
By offering incentives for feedback, multifamily owners and operators can find out what’s important to the resident and make those improvements to the property. This, in turn, leads to positive online reviews that boosts the property’s appeal to prospective residents.
The integration of rewards into the resident experience is not just a trend; it’s a strategic approach that meets the evolving demands of the industry. By directly addressing the factors that influence occupancy—renewals, referrals, and online reputation—these programs provide a competitive edge in today’s market.
However, the impact of reward programs extends well beyond occupancy. They foster a more engaged, satisfied, and loyal resident base, which is crucial for long-term success. A thoughtfully executed rewards program transforms residents into brand advocates, while also creating a community where people feel valued and want to stay. In an increasingly competitive landscape, the properties that prioritize resident satisfaction through rewards not only meet expectations but set the standard for excellence.
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.
About Domuso
Domuso is driving digital transformation for the multifamily industry with an advanced platform to reward positive renter behaviors and manage rent payments. Domuso captures 100% of a property’s receivables electronically while giving residents the flexibility to access multiple payment methods from any mobile device.
