Rewards programs have been a key driver of brand loyalty in countless industries. From airlines and hotels to coffee shops and grocery stores, the impact of rewards on consumer retention is undeniable. In fact, 84% of consumers are more likely to stick with a brand that offers a loyalty program.
Yet in multifamily housing, many operators haven't fully tapped into the potential of resident rewards. As more supply floods the market, the pressure to maintain occupancy has never been higher. Traditionally, resident retention was only centered around the overall living experience and amenities, but today nearly 60% of residents are factoring in community as a reason to renew. Introducing a rewards program is a great way to build that valuable connection and sense of community.
According to a Domuso survey of owners and operators at the 2024 National Apartment Association Apartmentalize conference, 92% of respondents said they believe that a rewards program would be of value to their communities. Despite these programs still being relatively new to the industry, 40% of surveyed organizations already have a program in place.
Building Loyalty Through Rewards Programs
The integration of a resident rewards program has proven to be instrumental in increasing resident satisfaction and brand loyalty. A well-crafted program provides an opportunity for property managers to cultivate a stronger relationship with residents.
Whether it’s points earned from lease renewals, submitting feedback, or paying rent digitally, rewards incentivize more resident engagement, which builds a stronger sense of camaraderie and appreciation for their community.
For Aaron Glick, managing director of loyalty for Greystar, a resident rewards program is a comprehensive solution that allows its communities to retain residents and maintain optimal occupancy levels. And with a background in hospitality, Glick knows that satisfaction correlates with better business outcomes.
“I'm a strong believer that resident satisfaction is directly tied to community success,” Glick says. “At Greystar, we’ve prioritized certain initiatives that will help us create a more resident-focused experience, including a rewards program. With a strong commitment to service, we aim to deliver a best-in-class digital ecosystem across our global network, and by offering rewards within our digital payment platform, we’re better able to support these initiatives.”
The Impact on Property Performance
A variety of redemption options—like cash back on rent, marketplace rewards, and amenity upgrades—encourages positive renter behavior and gives residents tangible incentives for staying engaged and renewing their leases. A thriving community boosts overall resident satisfaction, reducing turnover rates that in turn eliminates listing fee costs and lost revenue from vacant units. Long-term occupancy establishes consistent revenue streams and leads to an influx of positive online reviews and word-of-mouth promotion boosting the property’s appeal to prospective residents.
“It was exciting to learn that not only do a very high majority of owners and operators believe rewards can have a positive impact on their operations, but that 40% have already implemented a program,” says Julian Morgan, chief marketing officer for Domuso. “The value of reward programs extends far beyond the residents themselves. Resident satisfaction touches every facet of property performance.” Morgan remarks that with an improved reputation, “properties are positioned as resident-centric communities, increasing their appeal even further.”
Steps for Successful Implementation
The benefits of rewards are indisputable, but creating and funding these programs can be cumbersome and determining which budget it should come out of, marketing or operations, is difficult. However, that doesn’t have to be the case when it comes to fully funded reward programs.
“The biggest hurdle many operators face when considering a rewards program is funding,” Glick says. “We’re always looking for creative ways to fund resident rewards and create value for our clients.”
In addition, getting implementation right is crucial to the success of reward programs. Vanessa Siebern, chief operating officer for FPI Management, has gained valuable insight from her personal experience with rewards in the multifamily space.
“I always advise operators to test extensively to make sure the program will produce the results they’re looking for,” Siebern says. “And ensure that teams have a solid understanding of the time and resources required to properly implement resident rewards in order to maximize the advantages of the program.”
Glick believes rewards should also be easy to redeem, “The first time a customer has a rewards redemption, their satisfaction goes up significantly because they are seeing the value of the program firsthand.” Operators should find ways for residents to redeem points early to build excitement around the program and encourage them to engage in the behaviors that earn more points.
Education about the rewards program is paramount for both residents and on-site teams. Operators should be able to lean on their rewards provider for the training and resources needed to inform residents and drive engagement.
“The more active our industry partners can be with the implementation and operations teams, the better,” Siebern says. “They have experienced what has been successful and what hasn't. We always count on their active involvement with the rollout plan and beyond. We're not experts on everything, so when we can bring in the professionals to support our team, that's incredibly valuable.”
Reward Residents, Reward the Community
In the multifamily space, a well-crafted rewards program doesn’t just retain residents; it fosters a thriving community where people are happier, more engaged, and more likely to refer their friends. For operators, that means improved retention, higher occupancy, and better property performance.
“Resident rewards hold immense value for our properties,” Siebern says. “They close that revolving door and improve retention. It costs us a lot more to turn apartments than it does to create a community where residents want to make their home long term. Rewards help us cultivate a relationship with residents and maintain that connection, elevating their satisfaction while safeguarding the health of our assets.”
