The National Suppliers Council (NSC) is a prestigious network of suppliers within the National Apartment Association that serves as the expert voice and advocate for all apartment industry solution providers. This NSC Insider column is new and dedicated to offering a unique, service-provider view of the industry via insight and trendspotting for units' readers.
Imagine a community where residents are not only happy but eager to stay. Resident reward programs are more than just perks, they’re a strategic lever to enhance retention and boost your bottom line. The right rewards can drive behaviors like digital payment adoption and lease renewals, while also elevating a property’s reputation. Understanding how to harness this power could be the game-changer communities need.
The Power of Rewards
Psychological research consistently shows rewards are powerful motivators—84% of consumers say they’re more likely to repurchase from brands offering rewards, according to a University of Maryland report. In fact, according to NMHC, 69% of renters already engage in point-based reward programs in their everyday lives. The same principles apply to multifamily housing. When residents feel appreciated, they’re more likely to renew their leases, pay rent on time and become enthusiastic advocates for their community. Positive online reviews and referrals from satisfied residents can significantly enhance a property’s reputation and increase occupancy rates.
Rewards also cultivate a sense of community and belonging. Rewarding residents for positive behavior fosters a deeper connection and pride in their living space. This positive atmosphere benefits both residents and the overall success and reputation of the community.
Consider this: 92% of multifamily leaders recognize reward programs can benefit their organizations, according to an in-booth poll conducted at Apartmentalize 2024 by Domuso. The most cited benefits—elevated resident happiness, increased digital payment adoption and improved renewal rates and online reputation—highlight the transformative potential of these programs. With nearly four out of five Americans living paycheck to paycheck, according to a 2023 survey conducted by Payroll.org, it’s no surprise that 66% of consumers are eager to join reward programs that offer cost savings. The evidence is compelling: Well-crafted reward programs are not just beneficial, they are crucial for driving community success. In a market where resident satisfaction can make or break a property, these programs are not a luxury but a necessity for those committed to thriving in the multifamily housing industry.
Identifying Effective Reward Programs
Selecting the right rewards program is a strategic decision that can significantly impact organizational success. The most effective programs align with key objectives—whether it’s boosting overall happiness, driving retention and occupancy, accelerating income or increasing digital adoption. Decision-makers must focus on identifying programs that resonate with residents and meet these goals.
Variety is key. Choose a program that offers a diverse selection of incentives like cash back on rent, amenity upgrades or marketplace rewards. A variety of redemption options ensures the program appeals to all residents, making it engaging and inclusive. Programs that truly resonate with residents are more likely to see higher engagement and deliver meaningful results.
Ease of participation is equally critical. The program must be simple to understand and easy to engage with. The more accessible the program, the higher the participation rates—and the greater its impact on the bottom line.
Budget constraints are a common obstacle, but some resident reward programs are fully funded by the platform, maximizing benefits at no cost to the properties.
The Future of Multifamily Rewards
As the multifamily housing industry evolves, so will strategies for resident engagement. Leveraging the psychology of rewards creates more positive, engaging and satisfying living environments. This not only benefits residents but also strengthens the community’s financial stability. As these programs continue to gain popularity, they will likely become an integral part of the multifamily experience.
Domuso’s in-booth Apartmentalize poll data supports this—40% of multifamily housing organizations have already implemented resident reward programs, according to survey respondents. The future looks promising for those who embrace this approach. Increased occupancy, happier residents and enhanced digital adoption—these are not just possibilities, they’re the future for forward-thinking multifamily organizations.
Terri Nicholson is with Domuso, an NAA National Suppliers Council (NSC) member company. Visit https://nsc.naahq.org/directory to quickly find the suppliers, products and services you need through both location and category-specific searches.