Within the multifamily space, an abundance of opinions exist with regard to what most drives resident satisfaction and NOI. From the latest amenities to cutting-edge smart technology, owners and operators are trying it all. However, one growing-in-popularity tactic to improve the overall operations of a community is the implementation of a resident rewards program.

The Numbers Speak for Themselves
A Domuso survey administered at the 2024 NAA Apartmentalize conference found that an overwhelming majority of respondents – 92% – believe that reward programs can be beneficial to their communities. In fact, 40% of surveyed leaders have already implemented such a program. While maintaining occupancy is the primary concern for both owners and operators, the survey indicated that online reputation and resident happiness are also top priorities – all of which can be addressed by incorporating rewards.

How Rewards Help
Survey respondents cited three primary reasons for considering a rewards program, including:

• Referrals and Reputation: The most significant benefit operators see in offering resident rewards is the influx in referrals and improvement in online reputation following the implementation of the program. A good online reputation and strong referrals from existing residents can greatly improve overall occupancy rates.
  
  

• Resident Happiness: Reward programs are a tangible way to promote brand loyalty, boosting resident satisfaction and retention. Plus, offering a variety of rewards–from cash back on rent to amenity upgrades and marketplace rewards–creates an environment where residents feel valued and are more likely to renew their leases.
  
  

• Digital Payment Adoption: Reward programs can help encourage the adoption of digital payments, particularly in communities where residents are reluctant to use the service. Digital payment options mean more secure and efficient rent collection processes.
  
  

For owners and operators who are still hesitant about implementing a resident rewards program and need a little push, they can look to industry data demonstrating the value of such a program.

Residents Are Drawn to Reward Programs, Too
Per internal data from a new rewards client, 75% of its units are engaging with the resident rewards platform. Since launching the rewards program at its communities, the company has seen early or on-time payments jump by 15% and an increase in digital adoption by 10%.

Resident rewards are only going to accelerate the shift to total digital payments. As more owners and operators experience the benefits first-hand, rewards will become an integral component of boosting the adoption of digital payments, increasing resident retention, improving satisfaction and driving NOI.