Employee Bonus programs

I'm looking to restructure our company's current employee bonus structure. Does anyone have a good incentive based bonus structure that that they like and that works to motivate employees? We currently pay a leasing bonus, renewal bonus and a revenue and expense bonus to the manager if he/she beats budgeted revenue and expenses respectively. What is the industry standard for new lease bonus in Arizona? How about renewal bonus standard rate? Any input or info on employee bonus programs would be appreciated.

My company pays a tiered commission to leasing consultants (tier changes to accommodate low/high season activity).

In addition there is a pool of money that is tied to budgeted occupancy the leasing cons. share for renewals. How much of the pie each gets is tied to the new leases moved in that month per person.

But...I fundamentally believe that NO commission or structure or bonus will necessarily inspire a person to perform who is just not in the right seat. You might benefit from training and development of the hiring managers to look for the right talent. It doesn't take a rocket scientist to be a Leasing Consultant, but not just any person can be "trained" to do it.

I've always loved our monthly incentive bonus. Each property starts out with a percentage of rent collected for the month then a percentage added for any collections received and/or late fees, nsf fees, etc.

Then comes the deductions lol. A percentage is deducted for any outstanding rent and vacancy. Also deducted is a set amount for any reports turned in late, or computer backups skipped, things like that. Then the end amount is divided where 60% goes to on-call managers and the remaining 40% goes to leasing employees for hours worked.

A company I used to work for provided commissions on lease renewals - but it was a pool divided between both the office and maintenance staff. Most of the time maintenance is dealing with residents in their apartments and out on property, so it gives them some incentive to better assist with issues, proactively fix "extra" things in apartments, and go the "little extra" to ensure happy residents.

Very interested in this topic.. RIght now we have flat commission on new leases and renewals. Looking for ideas as well. Personally, I'd like to incentivize renewals more than new leases as they are worth more to me...less $ out.

I once worked for a company that had a formula on an excel spreadsheet... It basically paid a certain percentage of the total lease value. It was a great system because the more rent we got and less concession we offered the higher our commissions were.

I once got a $118 commission on a 2 bedroom simply because I rented it at market rate.

Other companies do flat rate / tier and I dont think its as motivating.

:woohoo:

I have always been a firm believer in keeping it simple, fun and engaged. Here are some ideas that you might find useful:

For the Property Managers:

They should always be focused on income, how to make more money and collect it.


For every % they are able to grow Net Rental Income when comparing year over year, the Property Manager would earn X. If the greatest growth is in the 1st qtr, there is a extra bonus. This will have them focusing on Q1 during Q3 and Q4.

For your Service Managers, provide them with a printout of what was purchased the year before and challenge them to locate the same parts or service for less. Then challenge them to purchase less of the items that were most purchased.

For example, our provider, HD Supply, provided us with a report showing everything we purchased in the last two years from them.

Our Service Manager quickly relazed that they were buying a lot of blinds and decided to learn how to repair them instead of replacing them. He was then given a bonus equal to 50% of savings realized in maintenance supplies. You will see how quickly the amount of overstock in the maintanance shop will drop by.

Johan