The Business Case for Resident Reward Programs

Wouldn’t it be great if there was a way to easily meet business goals while also improving resident happiness?

Luckily, there is a clear answer: resident rewards. 

About two in every three US consumers already engage in point-based reward programs. For multifamily leaders, this stat highlights an easy win-win opportunity. Offering a program that gives residents what they want while also incentivizing behaviors that solve business pain points, leads to an improved experience for the resident while also helping the property stand out in a crowded market. That’s why it’s no surprise 93% of multifamily owners and operators see the value of these programs.

Solving Business Priorities With Resident Rewards

Multifamily leaders overwhelmingly recognize the value of reward programs. Why? Because they address some of the industry's most pressing challenges and benefit both the residents and the multifamily organizations. These 4 key priorities are directly impacted by a resident rewards program:

1. Occupancy: A well-designed rewards program could be the key to unlocking your properties’ full potential. According to an NMHC industry benchmarks report published in February of 2024, the renewal rate for multifamily apartment homes was only 54%. By offering incentives tied to lease renewals, the decision to stay is more attractive for residents. Additional tangible benefits, like cash back on rent or amenity upgrades, help turn renters into loyal, long-term residents.
2. Resident happiness: Reward programs can significantly enhance overall resident happiness. Offering a variety of incentives—such as marketplace rewards, amenity upgrades, or cash back on rent—contributes directly to a more enjoyable living experience. Happier residents are more inclined to refer others, amplifying the positive impact on occupancy and reputation while also creating a more stable, engaged community.
3. Online reputation: Residents are more likely to provide feedback when offered an incentive to do so. This feedback allows multifamily owners and operators to make improvements to the property, often leading to positive online reviews that help build and maintain a strong online reputation. According to a report by Criterion B, 93% of US apartment seekers have used online reviews for their rental property search and 64% would be willing to pay more for highly ranked properties. Residents can easily narrow their search to properties that fit what they are looking for while the owners and operators benefit from increased interest and the ability to charge higher rent.
4. Digital payment adoption: Integrating rewards into digital payment platforms can drive adoption by offering residents incentives for paying rent online or on time. This not only makes the payment process more convenient for residents but also streamlines operations for property managers, reducing late payments, and improving cash flow predictability.
   

Creating a Mutually Beneficial Relationship

At its core, a resident rewards program is about creating a mutually beneficial relationship between the property and its residents. When done right, these programs enhance the resident experience while driving activities that positively impact revenue and NOI.

By aligning the structure of the rewards program with the specific needs and wants of residents, multifamily leaders can create a living environment that feels less transactional and more like a partnership. This alignment is crucial in today's market, where renters have more choices than ever before and are seeking more than just a roof over their heads.

Ready to explore the possibilities? Download the full report to dive deeper into how rewards can transform your property’s performance.

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About Domuso

Domuso helps multifamily properties accelerate cash flow and enhance resident loyalty with a world-class digital payments platform and resident rewards. We provide unmatched portfolio intelligence with views into payment trends and resident behavior to help improve property performance, all through a seamless and fully integrated experience.