Rent rewards programs are designed to make renting more rewarding for residents by offering incentives for behaviors that benefit both the resident and the property manager. These programs often help residents improve their financial standing while encouraging responsible residency.
In this blog, we’ll look at:
- What these programs include
- Benefits they bring to property managers, investors, and residents
- How rent rewards programs work
An Overview of Rental Rewards Programs
A rent rewards program is a loyalty program that encourages and recognizes positive resident behavior, from paying rent on time to renewing a lease. In providing a structured system of rewards, these programs aim to improve resident satisfaction and encourage long-term residency. Many property managers offer a range of incentives for various behaviors, which we'll explore next.
What rent rewards programs typically include
Most rent rewards programs are designed to offer residents something in return for making timely rent payments or taking other actions that benefit the property. Here are some examples of behaviors that are commonly incentivized in these programs:
- On-time rent payments: Residents might receive a credit boost for consistently paying monthly rent on time, which helps them build credit over time.
- Lease renewals: Property managers often reward residents who choose to renew their lease instead of moving out, reducing vacancy rates.
- Autopay enrollment: Residents may earn rewards for setting up automatic rent payments, reducing the chances of missed payments.
- Positive reviews: Leaving favorable reviews on social media or review sites can also be rewarded.
- Prompt maintenance reporting: Residents who report maintenance issues quickly may receive incentives for their proactive actions.
Rewards vary by each property manager, but they typically include gift cards, credits toward rent, points that can be redeemed for various perks such as travel rewards, or discounts on local services such as gym memberships and fitness classes. Some residents might even receive cash back or percentage discounts on their rent for maintaining good payment habits.
How a Rent Rewards Program Benefits Everyone
Property managers
For property managers, rent rewards programs reduce delinquencies and encourage residents to take better care of their homes. These programs also help properties to stand out in a competitive market, offering an extra reason for residents to stay for the long term.
Managers can also incentivize and track behaviors they want to reward, adding a layer of customization to the program.
Investors
Happy residents are more likely to stay in a rental property, which boosts retention rates and reduces turnover costs. Real estate investors benefit from consistent occupancy and reliable rental income.
Residents
For residents, rewards create extra motivation to pay rent on time and engage with their property manager in a positive way. Beyond the financial benefits, these programs offer peace of mind by helping residents improve their credit scores and manage their rental experience more smoothly. Note that residents can continue to pay using the method preferred by the property manager, including credit card, debit card, or direct bank account deposit.
Resident Rewards Through Piñata
Second Nature partners with Piñata to offer its rent rewards and credit-building services. Piñata provides an app (accessible via mobile as well as desktop) that allows residents to track and redeem their rewards easily. This partnership gives renters access to additional perks, such as exclusive deals and credit improvement opportunities, making it a win-win for both residents and property managers.
How rent rewards work
When a property manager signs up for a Resident Benefits Package with Second Nature, a rent rewards program is included in the price. They can simply tailor the program to fit their needs. Managers choose which behaviors they want to incentivize, such as paying rent on time or renewing a lease. As indicated above, with Piñata, these programs are accessible through both a web browser and a mobile app, making it easy for residents to track their rewards.
Residents benefit right away, with some programs offering a welcome gift at lease signing. Over time, residents accumulate reward points they can redeem for rewards in Second Nature’s exclusive perks marketplace, with built-in savings.
They also position themselves with better credit scores, meaning better deals on credit cards and leases, as well as better rates on loans, including an eventual home mortgage. From the property manager’s side, the rewards – and the resulting positive resident behaviors – are part of the resident benefits package, so there are no extra costs involved.
Final Thoughts
Rent rewards programs bring value to both property managers and residents. By incentivizing positive behaviors, property managers can reduce delinquency, increase resident retention, and help ensure a better rental experience overall, as well as a more rewarding rent day!
For more information on how rent rewards programs can work for your property, check out Second Nature’s Resident Rewards Program. Additionally, you learn more about the many benefits of a resident benefits package here.
November 4, 2024
