A Practical Guide to Resident Rewards

Resident rewards sound like an easy win, but rent credits, gift cards, and prize drawings can turn into an expensive giveaway if they aren’t tied to a clear goal. So what actually works when it comes to keeping residents happy and renewing?

In this episode of The Multifamily Marketers Podcast, hosts Josh Grillo and Caroline Mills answer a listener question from a family that recently purchased a 98-unit community: Which resident rewards are worth the investment, and which ones just cost money?

From on-time payment incentives and early renewal offers to resident events, points programs, and referral rewards, Josh and Caroline cover how to match a reward to the problem you’re trying to solve. Plus, they share a simple framework for pricing, launching, and measuring a small pilot program, even with just one person on site.

You’ll learn:

• Why fixing service issues should come before launching any rewards program
• Which rewards residents value most, and why a rent credit often beats a flat-screen TV
• Whether rewarding on-time rent payments makes sense, and when to stop the test
• How to build an early renewal offer that feels clear and fair, not pushy
• How to boost resident event attendance without relying on bigger prizes
• How to budget for a rewards program and calculate whether it actually pays off
• The most common reasons rewards programs fail, and what to measure before deciding to keep one

To suggest a topic, get in touch!

For more multifamily marketing help, connect with us at Resident360.

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TRANSCRIPT

Episode 61: A Practical Guide to Resident Rewards

Podcast Co-Hosts: Josh Grillo and Caroline Mills, Resident360

Josh: Welcome back to the Multifamily Marketers Podcast. I’m Josh Grillo, co-founder here at Resident360, and I’m joined by our director of digital marketing, Miss Caroline Mills. How are you doing, Caroline? What’s happening out there today? Sunny day in Florida. Are we feeling good?

Caroline: It is, and we’re getting our “fall,” quote unquote, compared to the rest of the country. We’re in the upper 50s to the upper 70s, low 80s, so we’re taking it in. That’s really nice for us.

Josh: Oh, love it. So I’m going to jump right into today’s topic. It actually came in from a listener whose family recently purchased a roughly 98-unit property out in California, I believe. They asked a really good question: What actually works when it comes to resident retention programs? Caroline, have we talked about resident retention programs on the show before?

Caroline: I actually don’t think we have. We were talking about this offline ahead of time. We’ve talked all about different resident experiences, but I don’t think we’ve specifically dived into resident retention strategies.

Josh: Sounds like a perfect topic for today.

Caroline: Yes.

Josh: So they had some specific questions. What actually works when it comes to resident retention programs? Should we reward on-time payments, early renewals, or people showing up to resident events? And what do residents actually want? Do they want rent credits? Do they want gift cards, or do they want, say, a new flat-screen TV? We talk a lot about getting residents in the door here on the show, but today we’re doing a deep dive on resident retention. And I know you have a lot of experience with this, Caroline, so I’m talking to the right source.

Caroline: Yes, absolutely. I’m excited. Let’s dive in.

Josh: All right. So the big question: Are resident rewards actually a retention strategy, or are we just giving away money?

Caroline: They can be either, honestly. The difference is whether we know what we’re trying to change. If the problem is late payments, that’s a collections and cash flow goal. If the problem is last-minute renewal decisions, that’s really a timing goal. If residents are leaving, that’s a retention goal. They’re all related, but they’re not the same thing. Someone signing a renewal earlier doesn’t necessarily mean we saved a resident who would have moved, and a crowded resident event doesn’t automatically mean more people will renew. I think that’s a common misconception, too.

So I’d start with one question: What is happening at this property that we want to improve? Then build the reward around that, rather than starting with a standard reward. And before we do any of this, make sure the basics work. A gift card doesn’t make up for a maintenance request that’s been sitting there for three weeks.

Josh: So if my service is broken, the first retention investment probably needs to be fixing the service.

Caroline: Exactly. Rewards should reinforce a good experience. They just can’t carry the whole experience.

Josh: Okay, so what does the research say residents actually want?

Caroline: The clearest theme we see is practical value. Entrata’s 2026 Renter Research Summary identifies rent credits, gift cards, and cash-equivalent benefits as appealing rewards. It also found that 84% of respondents were interested in a rewards program, while 74% didn’t know whether their property even offered one.

So that tells us two things. There is interest, but there might be a communication problem. You can have a program, but if nobody knows it exists or understands how to redeem anything, it’s really not doing much. And interest in a program isn’t proof that it will increase your renewals. Use the research to choose what to test, then measure what actually happens at your property.

Josh: So before we spend anything, what should we ask our residents?

Caroline: Whether you ask them personally or send out a survey, whatever’s best for your community, ask: Which would you use most? A rent credit, a grocery gift card, a parking benefit, or a home service? Whatever may work for your property and your community. But give real choices at values you can actually afford. We don’t want to put something wild on there, get a lot of interest, and then not be able to follow through. And then look at what people actually redeem, not just what they say sounds nice.

Josh: All right, so let’s settle this. Rent credit, gift card, or TV?

Caroline: My starting recommendation would be a rent credit or a choice of practical rewards. A rent credit is very easy to understand: That’s money I don’t have to pay next month. A grocery or general retailer gift card offers flexibility. If you’re in a city, a parking benefit can be valuable if the resident is paying for parking or it isn’t included.

A TV can be fun, but it’s a specific item. Maybe I already have one. Maybe I’d rather put that value toward groceries. It also creates delivery and storage work for your team. Where are you going to keep these things while you’re handing them out? And we need to separate a guaranteed reward from a drawing. Make that very clear when you’re talking with your residents. A $25 credit for every eligible household is a very different proposition from a chance to win a $500 television.

Josh: But the TV, Caroline, looks so much better in Instagram photos. The rent credit, though, looks better in the checking account.

Caroline: Exactly. Completely agree. So ask those residents and let them tell us which one matters most to them.

Josh: Now, would you offer a menu?

Caroline: I can see the appeal, and I do get this question. If you do, make it a small one: two or three choices with clear values, redemption dates, and any limits. We don’t need to turn the leasing office into a department store.

Josh: Okay, let’s talk about rewarding residents for paying rent on time. Should we really reward residents for that? Isn’t paying on time already a requirement when they sign the lease?

Caroline: It is already required, so I understand the objection. I’d say the business question is whether a modest incentive changes payment behavior enough to justify the expense. If nearly everyone already pays on time, you may spend a lot rewarding behavior you’re already getting. If payment timing is a real issue, a small test may make sense for your community.

For example, a proposed program might offer a $10 reward for each qualifying month, subject to a written annual cap. That’s a test amount, not a recommendation or any kind of industry rate. Define the qualifying payment date, how pending or returned payments are handled, and when the reward arrives. Explain it before people participate, and don’t change the rules after someone thinks they’ve already earned something.

And don’t confuse a rewards program with affordability assistance. If residents can’t afford the rent, points aren’t going to solve that. Rewards aren’t going to solve that.

Josh: What would make you stop the test?

Caroline: If costs increase and payment behavior barely changes. Track the share of residents paying on time, delinquent balances, staff collection time, and total program cost. And don’t build the business case around keeping late-fee revenue.

Josh: Let’s talk about what a good early renewal offer looks like.

Caroline: A good offer is very clear. It has a reasonable decision window and a specific delivery date. For example: “Renew your lease by the date in your offer letter and receive a $200 rent credit on the first month of your renewed lease.” The renewal rate and lease terms need to be available when the offer goes out. Residents can’t make an informed decision if we tell them the reward but haven’t told them the price. You can also offer a choice between that credit and a clearly described home benefit, if the economics work for your property.

Josh: So how do we keep this from feeling like pressure?

Caroline: Give residents time to review the full terms. Let them ask questions. Keep the deadline real and explain what happens after it. And have the timing checked against the notice requirements that apply in your state or community.

Josh: Now, could we end up paying residents to renew when they were going to stay anyway?

Caroline: Absolutely. That’s one of the biggest budget traps. Let’s say 30 residents take the offer. We can’t claim we saved 30 move-outs, because some of those residents were going to stay regardless. Track early signing and final renewal rates separately. If early decisions increase but the final renewal rate stays flat, the program may have helped with planning and reduced follow-up work, and that can still have real value. It just hasn’t demonstrated a retention improvement. And if you’re already achieving strong renewals, a blanket discount might be an expensive way to celebrate the same success.

Josh: Would you offer it to everyone?

Caroline: You do want an approved, consistent eligibility policy for all residents. Avoid letting the best negotiator or the loudest voice get the best deal. Any targeting or exceptions should have a documented business basis and be reviewed according to your state and company requirements.

Josh: What about rewarding residents for attending events? That sounds like a pretty good idea. Why not?

Caroline: I can definitely see the reasoning. I’d say it goes back to our first point: first figure out why attendance is low. Is the event at the wrong time? That’s one I see often. Teams will hold events between 3:00 and 5:00 p.m., when a lot of people can’t make it. Is it an event residents actually want? Have you asked them? Have you seen what they want in the community? Is it always the same 10 people?

Sometimes the answer is a better event, not a bigger prize. So I would test a useful experience first. One that’s tried and true, and that we tell everybody about when they’re trying to get people to events, is a breakfast pickup. This one is so easy. Offer chicken biscuits or donuts or whatever it may be, and stand at the exits so people pass by you when they’re leaving the community or out on their morning walks. That gives you face-to-face time with them. Either they turn down a free breakfast, or they’re so grateful and didn’t even know you did free events. Sometimes it’s the easiest way to get residents out there and involved.

You can do food from a local business, or you could do an activity. And I’d say ask residents. Where I live now, they actually asked us, “What resident events would you want to see?” So you get to hear from your actual residents. If you do add a reward, keep it modest and cap the budget. And give people different ways to participate over time. Someone who works evenings shouldn’t be excluded from every engagement opportunity. Try different days, different times, and different offerings, and see what works best for your community.

Josh: I like that. A pre-event for the main event, right?

Caroline: Yeah.

Josh: The pre-event is you standing at the exit handing out, I’ll just say donuts because it’s easy, to everybody driving out of the parking lot or walking out of the building. And maybe with that, there’s a QR code for a survey about upcoming events, or asking what they might be interested in attending. So a pre-event for the main event.

Caroline: Absolutely.

Josh: Okay, so how do we tell whether people are actually building community, which is really hard, or just collecting free food like pizza?

Caroline: And I can’t be a complainer here, because I’ve done that before. If there’s free pizza during a game, why not stop by? But I would look at the number of unique households attending, first-time participation, and repeat participation, and if you need to, track cost per household. And definitely gather feedback.

Follow renewal outcomes over time, while remembering that residents who already like the property may be more likely to attend, and they may know more people there. Attendance alone doesn’t prove an event caused retention. But use these moments. If it’s someone’s first time, spend a little extra time with them and make sure they’re enjoying the community and the event. Take into account what people are looking for, and then see whether it’s actually helping your retention efforts.

Josh: Could we combine payments, renewals, and events into one points program, one big rewards program?

Caroline: You could, but I wouldn’t start there, especially with a smaller team trying to handle it all at once. A simple, direct reward is easier to explain: Complete this qualifying action and receive this benefit by this date. Points become useful when you have several activities, reliable tracking, and a catalog residents actually want. But you need clear redemption value. If 500 points sounds impressive and turns out to be $2, residents will notice.

Buildium’s Resident Center is one example of a platform offering points-based resident rewards through Piñata. Its help center says activities and rewards vary by property, and points don’t apply to rent unless expressly allowed. So ask exactly what a platform provides. “Rewards” might mean cash value, merchandise discounts, or access to offers, and those are different things.

I actually have one where I live. It’s called Bilt. By paying rent on time through their approved methods, we get points every month, and you can redeem them for gift cards and experiences. It even gets you first access or last-minute reservations at places. But that’s something my management company had to decide on and look into in advance. It’s very clear: Every time you pay, it tells you what you’ve earned and where you can use it. But it’s a third party. So that’s where I’d say: Don’t take all of this on yourself if you have a small team managing it. Bring in other resources if it makes sense for your community.

Josh: And what should an owner ask before buying software?

Caroline: Good question. If that makes sense for you, ask: Who funds the rewards? What does a resident actually receive? Are there any fees, expiration dates, or purchase requirements? Does it connect to your existing property management system? And how much work is left for our team?

Josh: Okay, now put yourself in our listener’s shoes: 98 units, one person on site. Where would you start with a rewards or retention program?

Caroline: I would start with one behavior, one reward, and one tracker. If renewal uncertainty is the biggest issue, pilot an early renewal offer for the next eligible group under a consistent, approved policy. If late payments are the issue, test a payment reward instead. Don’t launch three programs at once and then wonder which one made the difference.

Use the systems you already have, if possible. You need the household, the qualifying action, the date earned, the reward amount, when you delivered it, and the outcome. And limit access to resident information. The manager should be able to explain the program in a couple of sentences, and residents should be able to tell when they’ve qualified and when they’ll receive the benefit.

Josh: So would a property this size need an app? I know there are apps out there for retention and renewal programs. But for a smaller property, would you need one?

Caroline: You probably don’t, and definitely not automatically. Only buy technology when it solves a real tracking or delivery problem. You don’t want to create an app project when what you need is a clear offer and a simple, reliable process.

Josh: So Caroline, how do we set a budget without guessing?

Caroline: Price the entire promise first. Assume every eligible household earns it. Wouldn’t that be great, if the entire property renewed with us? At a 98-unit property, a $10 monthly reward available to every household could cost $980 a month, or almost $12,000 a year, before administration. A $200 renewal credit costs $200 per qualifying renewal, so if 30 households earn it, that’s $6,000. Those are two different cost structures, and you want to keep them separate.

Then compare the cost with the benefit you actually expect: fewer preventable move-outs, less vacancy, lower collection effort, or earlier decisions. Here’s a hypothetical retention calculation. If a preventable move-out costs your property $3,000 in avoidable vacancy, turnover work, and re-leasing expenses, and your program costs $6,000 all in, you need two additional retained households to cover it. Three would put you ahead under those assumptions. But use your own costs, and only count the savings that actually disappear when a resident stays.

Josh: So a reward can be affordable per resident and still end up being expensive across the property.

Caroline: Exactly. The first example sounds like a lot less. But $10 sounds really small until you multiply it by every door, every month.

Josh: What usually makes these programs fail?

Caroline: I would say trying to do too much at once, complicated rules, weak value, and poor delivery or follow-up. Residents earn something but have to chase down the office. A gift card requires extra spending. Points expire before people can use them. The team can’t fully explain the program, or the property adds a fee that wipes out the reward’s value entirely.

Another mistake is marketing the incentive while ignoring the renewal increase. If rent goes up by $100 a month, that’s $1,200 over a year. A one-time $100 rent credit doesn’t erase that. Be honest about the full cost. And don’t use essential maintenance as a prize. Repairs residents are entitled to should happen whether they participate or not. Optional upgrades are a separate conversation.

Josh: And what needs to happen before launch?

Caroline: A written budget, clear eligibility and delivery terms, consistent administration, and a review against the property’s lease, housing requirements, and local rules. Any prize drawings need their own review. And keep the first version very simple while you’re testing it.

Josh: So what should we measure, and how do we know whether we want to keep it?

Caroline: Establish a baseline before launch, then measure the outcome the program was built to change. For payments, check your on-time payment rate, delinquency, collection workload, and cost. For renewals, look at early signing, the final renewal rate among eligible expiring leases, the reward cost, and the property’s actual turnover economics. For engagement, look at unique households reached, cost, feedback, and longer-term renewal patterns.

Use comparable groups or time periods where it’s feasible, like months with a similar number of expiring leases. Account for rent changes, seasonality, service improvements, and a different resident mix. Otherwise, you can give the program credit for something it didn’t change. At 90 days, review whether people understand it, whether rewards are arriving correctly, and whether costs match the budget. You may need a full renewal cycle to judge retention, especially at a 98-unit property, where a few decisions can swing the percentage pretty drastically.

Josh: Okay, let’s shift gears for a second. What about rewarding residents for helping bring in new neighbors? There are programs out there like RentGrata, where residents connect with people considering the property. Is that beneficial?

Caroline: This is actually a question we get a lot. I just led a training where we talked about resident referrals and helping bring new people into the community, and that’s definitely another way to involve residents. Like you said, RentGrata connects prospective residents with current residents who can answer questions about living at the community. If that conversation leads to a qualifying move-in, the resident and the new neighbor can receive a reward.

This can happen through word of mouth, too. A resident tells someone how great the community is, and they’re the one who referred them. It gives prospects a chance to hear from someone who actually lives there, while recognizing residents for helping grow the community. Whether you use a platform or a simple referral program, keep the offer easy to understand and deliver the reward when promised.

We actually looked at a multifamily study on this, and it said nine out of 10 people will trust a review from someone they know over someone else. Think about that in your personal life. We all would. If somebody tells me a new drink or a new toothpaste is great, I’m going to trust that a lot more than an ad on TV.

Josh: That makes total sense. All right, how about a quick-fire round? We haven’t done one in a few episodes.

Caroline: Okay.

Josh: First up, Caroline: guaranteed reward or a chance to win a TV?

Caroline: I would start by testing a modest guaranteed reward. Clear value is easier to communicate.

Josh: Okay. Number two: most overlooked reward.

Caroline: A practical benefit for something the resident already pays for, if they actually want it. A grocery gift card, whatever it may be.

Josh: All right, number three: biggest red flag.

Caroline: Residents having to chase us to receive something they earned. I see that in Google reviews all the time: not getting their gift cards, or whatever it may be.

Josh: Oh, that would leave a bad taste in my mouth.

Caroline: Mm-hmm.

Josh: All right, number four: one thing rewards can’t fix.

Caroline: They can’t fix a home people don’t enjoy living in.

Josh: That is so true. And finally, number five: first action after this episode.

Caroline: The first thing I would do is ask residents what they’d use. Then pick your one business problem, price it, and run a small pilot. But absolutely ask them first.

Josh: So would that be an e-blast with a survey?

Caroline: I would recommend it, absolutely. That way you don’t forget anyone, you’re not trying to remember who you checked off as you saw them, and you don’t have to track anyone down. If someone doesn’t want to participate, they don’t have to. But keep it very simple. Only ask a few questions so it isn’t overwhelming.

Josh: Awesome. All right, let’s wrap it up there. Caroline, as always, super helpful and very valuable. I got a lot out of this episode. Thank you, guys, for listening. We’ll be back next week with another episode of the Multifamily Marketers Podcast. Take care.

Caroline: Thanks, guys. Bye!