A Look at the Power of Digital Solutions and Reward Programs
In the ever-evolving landscape of multifamily housing, resident happiness is not only integral to fostering a vibrant community but also pivotal in minimizing operational and marketing costs. The influence of a resident rewards program, in conjunction with the innovative payment solution offered by Domuso can help multifamily companies achieve revenue growth by not only increasing occupancy through resident satisfaction and building a positive online reputation, but can also influence resident payment behaviors that reduce risk for your business. Let’s explore some of the ways in which rewards programs have a financial impact on property performance, from optimizing retention and improving resident satisfaction to attracting new residents and safeguarding your business against lost payments:
Mitigating Costs Through Impactful Retention Strategies
According to an industry study, the average cost of resident turnover is a staggering $4,000 per unit. It’s time we take a hard look at current retention strategies in the industry because we know that some are not as effective as they could be. What if instead of adding additional budget, we repurpose the budget from the least impactful strategies at a given property toward a tried and true rewards program approach, at a time when participation in these programs is at an all-time high (learn about the benefits companies like American Airlines and Starbucks have experienced)?
Rewarding residents for paying rent on time or leaving positive online reviews, can help create a strong sense of loyalty to their community. After all, happy residents will continue to do activities most valuable to the community if they are getting rewarded for it. This is even more impactful considering rewards programs are estimated to lead to a two percent reduction in vacancy rates, which adds up quickly (for example, 2% of a 5,000 unit portfolio is 100 units; multiplying that by the $4,000 turnover cost per unit results in $400,000 of savings).
Elevating Resident Happiness With Modern Amenities
As an industry, we’ve witnessed modern amenities–like resident experience apps–replacing onsite amenities as the main factor in determining resident satisfaction and retention. By prioritizing integration of these types of amenities, like resident rewards programs, property management companies can strengthen their competitive edge in the market. Capitalizing on the era of reward program participation can greatly benefit multifamily organizations looking to minimize turnover costs and concession payouts in the long run.
The Power of Positive Reviews for Attracting New Residents
With nearly 80% of renters prioritizing positive reviews in their search for a new place to call home, establishing a robust online presence is paramount. Across all industries, there’s nothing quite as powerful as word of mouth marketing; however, it can also be hard to capture. Because of its importance for attracting future residents, property management companies should strongly consider how a rewards program can help. By rewarding residents for positive reviews, PMCs can more efficiently and effectively bolster their reputation and appeal within the competitive multifamily housing market.
Safeguarding Your Business by Reducing Risk
Processing paper and non-certified rent payment methods can be costly. First, check fraud is still a widespread problem, and rent payments can be lost as a result. They also use up employee time to process and organize the paper payments that could be eliminated through a digital payment method. Digitally certified payment options serve as a reliable shield against fraudulent activities, ensuring both the security of transactions and the peace of mind of property managers.
Considering check fraud continues to affect around 75% of companies, having a way to encourage the use of digitally certified payment options can simultaneously reduce risk and maximize operational efficiency. Because 0.5% of those payments are subsequently lost, that’s nearly $100,000 in losses for a 5,000-unit portfolio.
Additionally, we see that 0.2% of all payments result in chargeback disputes. While that might seem small at first glance, half of those are lost by the property. Ultimately, this can mean nearly $60,000 in losses for the same 5,000-unit company.
With an effective rewards program in place, properties can award points for residents paying their rent through secure, online payment methods. (See what Ron Klein, Head of Product at Domuso, has to say about influencing payment behaviors.)
The multifamily housing sector’s revenue heavily depends on the twin pillars of resident satisfaction and operational efficiency. Through the seamless integration of an effective rewards program, property management companies can not only drive resident engagement and retention but also foster a sustainable business model that prioritizes resident happiness and long-term community success. After all, returning residents means less uncertainty and decreased turnover, marketing and maintenance costs. Embrace the power of resident-centric initiatives with Domuso and gain the competitive edge your properties need in today’s market. Learn more about the financial benefit of using Domuso with this interactive calculator.
Domuso is driving digital transformation for the multifamily industry with an advanced platform to manage payments and communication throughout the entire resident lifecycle. Domuso captures 100% of a property’s receivables electronically while giving residents the flexibility to access multiple payment methods from any mobile device.
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