{"id":12674,"date":"2022-02-14T23:11:34","date_gmt":"2022-02-14T23:11:34","guid":{"rendered":"https:\/\/www.parcelpending.com\/?p=12674"},"modified":"2024-08-09T20:11:08","modified_gmt":"2024-08-09T20:11:08","slug":"property-management-incentive-ideas","status":"publish","type":"post","link":"https:\/\/www.parcelpending.com\/en-us\/blog\/property-management-incentive-ideas\/","title":{"rendered":"14 Property Management Incentive Program Ideas to Retain Residents"},"content":{"rendered":"

As a <\/span>property<\/span> manager<\/span><\/a>, you undoubtedly recognize that turning over a unit has a significant price tag \u2013 from cleaning to marketing to maintenance costs (especially in <\/span>current market conditions<\/span>). To retain residents, here are 14 key <\/span>property management incentive ideas<\/span> to keep your residents happy and in place.<\/span><\/p>\n

The Details of Incentives<\/strong><\/h2>\n

With an average resident<\/span> retention<\/span> rate of just 58% and a cost of $4,000 (or more!) to replace just one <\/span>resident<\/span>, you earn a positive return on your investment by convincing residents to stay<\/span>.1<\/sup> Don\u2019t forget: your <\/span>incentive plan<\/span> objective is to convince <\/span>good residents<\/span> who are on the fence why they should stay and renew, not to subsidize <\/span>existing brand loyal <\/span>residents.<\/span><\/p>\n

#1 Offer a Cash Reward<\/strong><\/h2>\n

A recent study found that 52% of residents prefer incentives in the form of <\/span>cash <\/span>flow<\/span> or <\/span>a <\/span>spendable <\/span>reward<\/span>s<\/span>.2<\/sup> In short: cash is king. Consider offering cash rewards for on-time rent payments or referrals.
\n<\/span><\/p>\n

#2 Add Smart Lockers as a Lease Renewal Incentive<\/strong><\/h2>\n

Online shopping, grocery, and restaurant delivery are now a permanent part of how consumers order and acquire goods. Residents today expect their packages and other deliveries to be stowed safely and securely. In fact, recent National Business Research Institute surveys of apartment residents<\/a> show that amenities that deliver high levels of safety and security \u2013 particularly smart package lockers \u2013 are of particular importance to residents.3<\/sup>
\n<\/span><\/p>\n

Installing smart parcel lockers is a big win, as it\u2019s estimated that package lockers can lift <\/span>lease<\/span> renewals by as much as a jaw-dropping 40%! More importantly, it adds to <\/span>resident<\/span> satisfaction, as residents can retrieve their packages on <\/span>their<\/span><\/i> schedule with zero human interaction\u2026and within 10 seconds.\u00a0<\/span><\/p>\n

To learn more about how <\/span>IoT is transforming property management<\/span><\/a>, check out our related blog post.<\/span><\/p>\n

#3 Propose a Temporary Rent Deduction<\/strong><\/h2>\n

The keyword here is \u201ctemporary.\u201d <\/span>Property management companies<\/span> with successful <\/span>financial<\/span> incentive<\/span> programs often limit the <\/span>rent<\/span> reduction <\/span>for a <\/span>rental property <\/span>to three months <\/span>of the resident\u2019s <\/span>lease agreement<\/span>. 26-35 year-olds are the demographic most likely to continue renting if they receive a discount<\/span>.4<\/sup><\/span><\/p>\n

#4 Schedule an Upgrade<\/strong><\/h2>\n

Many <\/span>incentive<\/span> options are at your fingertips: carpet cleaning or replacement, fresh paint, new flooring, new fixtures, and new appliances are all options.<\/span><\/p>\n

#5 Propose Free or Discounted Parking<\/strong><\/h2>\n

Depending upon your property’s location and the cost of <\/span>real estate<\/span>, parking is as difficult as earning a gold medal or as plentiful as air. Free, discounted, or even covered parking is often an attractive <\/span>incentive<\/span>.\u00a0<\/span><\/p>\n

#6 Give the Gift of Clean<\/strong><\/h2>\n

Given the continued preference for hybrid or remote work, many residents appreciate the joy of someone undertaking a deep clean of their residence. You have the option of making it a one-time event or offering a cleaning service for a limited time.\u00a0<\/span><\/p>\n

#7 Embrace Subscription Gift Boxes<\/strong><\/h2>\n

The subscription model is exploding! It\u2019s currently a $650 billion industry<\/span>,<\/span> and UBS predicts it will skyrocket to $1.5 trillion by 2025<\/span>.5<\/sup> From food boxes to prepared meals, razors, coffee, and make-up, there\u2019s at least one gift box option to give to every <\/span>resident <\/span>from their <\/span>property management team<\/span>.<\/span><\/p>\n

#8 Serve Up a Renewal Menu<\/strong><\/h2>\n

Residents adore this strategy as it recognizes that every <\/span>resident<\/span> is different.<\/span> This menu includes<\/span> everything from upgrades to dinner gift certificates to theater tickets.<\/span><\/p>\n

#9 Package Up Internet & TV Options<\/strong><\/h2>\n

Many <\/span>property<\/span> managers receive bundled discounts from their corporate parent. Try passing on these discounts to residents.<\/span><\/p>\n

#10 Implement a Referral Program<\/strong><\/h2>\n

Based on the \u201cbirds of a feather flock together\u201d theory, you can ask your <\/span>good residents<\/span> to refer other quality residents to your <\/span>property<\/span>. Ensure there\u2019s an easy-to-understand rewards program in the form of cash or a <\/span>gift card<\/span>.<\/span><\/p>\n

#11 Offer Flexible Lease Terms<\/strong><\/h2>\n

In a recent key survey, <\/span>78% of residents surveyed stated they would remain in their current apartment if they were given the opportunity to renew their <\/span>lease<\/span> for a shorter period of time and with no monthly payment increase<\/span>.6<\/sup><\/span><\/p>\n

#12 Reward Loyalty<\/strong><\/h2>\n

Given continued inflationary impacts on materials, labor, and insurance, resident<\/span> retention<\/span> is more important than ever for community managers<\/span>. <\/span>Some <\/span>property<\/span> owners are considering our outright returning loyal residents\u2019 security deposits, even in installments, to boost <\/span>resident<\/span> retention.\u00a0<\/span><\/p>\n

#13 Provide Feedback Opportunities<\/strong><\/h2>\n

Surveys are <\/span>an excellent<\/span> mechanism for getting input from apartment residents as long as you follow these key guidelines:<\/span><\/p>\n

Keep it Short<\/strong><\/h3>\n

Most experts recommend that you limit questions to no more than five questions.<\/span><\/p>\n

Add a Progress Bar to the Survey<\/strong><\/h3>\n

Research shows that surveys are more likely to be completed when respondents can see that they\u2019re making progress and <\/span>are <\/span>almost done.<\/span><\/p>\n

Always Provide an Area for Comment<\/strong><\/h3>\n

This area is where savvy <\/span>property<\/span> managers invest the most time looking for informal suggestions for improvement in their apartments.<\/span><\/p>\n

Remain Aware of Timing<\/strong><\/h3>\n

Key events should trigger a survey including apartment move-in date, maintenance repair, upcoming <\/span>lease renewal<\/span> date, and move-out date. For example, remember to send a feedback response approximately two weeks after residents have moved in so that they can reasonably be expected to find the time to complete it.<\/span><\/p>\n

Offer Survey Incentives<\/strong><\/h3>\n

Asking residents to complete surveys without remuneration is difficult. Look to contests or prizes to pump up the response rate. Of course, continue the community support by rewarding winners with gift cards from your local booksellers, coffee shops, and retailers.<\/span><\/p>\n

Limit Surveys to Four Per Year<\/strong><\/h3>\n

Survey fatigue plagues many residents, reducing the opportunity for <\/span>property<\/span> managers to gain quality feedback.<\/span><\/p>\n

Share the Results<\/strong><\/h3>\n

Residents want to feel heard and acknowledged. Buzutto, which manage<\/span>s<\/span> over 80,000 rental units, routinely sends not only surveys but this email: \u201cYou Spoke, We Listened.\u201d<\/span><\/p>\n

Surveys certainly work to glean valuable information from residents. Don\u2019t forget to also open up the communication lines with front-line maintenance workers, concierge employees, or on-site <\/span>property<\/span> managers who also take the pulse of residents.<\/span><\/p>\n

Installing comment card collection centers near your mailroom and smart lockers also serves as a great way to understand resident<\/span> sentiment. Don\u2019t forget to provide easy-to-find links on your home page and social media accounts. The golden rule here is \u201csocial listening.\u201d Whether it\u2019s on Instagram, Facebook, or Twitter, it\u2019s important for ideas and complaints never to fall on deaf ears.<\/span><\/p>\n

#14 Deliver Welcome Baskets via Smart Lockers<\/strong><\/h2>\n

Engage your residents and thank them for being a <\/span>resident<\/span> from the get-go. A sample basket from local businesses is particularly relevant. Remember, the more residents feel like your community is truly home, the longer they will be inclined to stay.<\/span><\/p>\n

\n

In our ever-changing world, where it seems as if prices are getting higher and customer service quality is trending lower, <\/span>the best <\/span>property management tip<\/span><\/a> for retaining residents is fostering a positive relationship. By offering incentives <\/span>and <\/span>keeping the lines of communication open, you reap the rewards of having loyal, engaged, and happy residents.\u00a0<\/span><\/p>\n

Sources:<\/b><\/p>\n

    \n
  1. ZeGo. <\/span>3 surprising trends about multifamily unit turnover<\/span><\/i>. (n.d.). <\/span>https:\/\/www.gozego.com\/articles\/multifamily-unit-turnover\/<\/span><\/a><\/li>\n
  2. Zillow. <\/span>5 Budget-Friendly Resident Renewal Incentives<\/span><\/i>. (n.d.). <\/span>https:\/\/www.zillow.com\/multifamily-knowledge-center\/property-management\/five-resident-renewal-incentives\/<\/span><\/a><\/li>\n
  3. Parcel Pending by Quadient. 2024 Resident Preferences Report. (2024, August 2). https:\/\/www.parcelpending.com\/en-us\/resources\/2024-resident-preferences-report\/<\/a><\/li>\n
  4. Short, Taylor. Software Advice. <\/span>Survey Reveals Tenant Incentives That Really Work<\/span><\/i>. (2016, April 26). <\/span>https:\/\/www.softwareadvice.com\/resources\/survey-reveals-4-tenant-incentives-that-really-work\/<\/span><\/a><\/li>\n
  5. Long, Heather & Van Dam, Andrew. The Washington Post. <\/span>Everything\u2019s becoming a subscription, and the pandemic is partly to blame<\/span><\/i>. (2021, June 1). <\/span>https:\/\/www.washingtonpost.com\/business\/2021\/06\/01\/subscription-boom-pandemic\/<\/span><\/a><\/li>\n
  6. Serlin, Christine. Multifamily Executive. <\/span>Assurant Study Looks at Renters\u2019 Changing Priorities<\/span><\/i>. (2021, April 26). <\/span>https:\/\/www.multifamilyexecutive.com\/property-management\/apartment-trends\/assurant-study-looks-at-renters-changing-priorities_o<\/span><\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    As a property manager, you undoubtedly recognize that turning over a unit has a significant price tag \u2013 from cleaning to marketing to maintenance costs (especially in current market conditions). To retain residents, here are 14 key property management incentive ideas to keep your residents happy and in place. The Details of Incentives With an […]<\/p>\n","protected":false},"author":3,"featured_media":12675,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41,9],"tags":[],"class_list":["post-12674","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-multifamily","category-blog"],"acf":[],"yoast_head":"\n14 Property Management Incentive Ideas | Parcel Pending<\/title>\n<meta name=\"description\" content=\"IoT is revolutionizing college campuses. 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