Having been a “model tenant” in the past, I’ve found that did not materially impact my ability to sign a new lease or to buy a property. Further, it’s hard to believe but arguably the largest monthly cost of on-time rent payments are not but relatively minor expenses such as Netflix payments are reflected on credit bureau ratings!  

Why Aren’t Resident Awards Packages Everywhere?

In short, they are increased work and a traditional property management company focuses on minimizing work – and therefore costs. But, many resident award types actually increase the asset’s income (see my previous blog re package lockers).   

So, What Are Some Award Types?

As an overview, the awards should improve the resident’s life by rewarding behavior (such as on-time rent payments), adding convenience (such as providing a package locker), streamlining requirements (such as replacing furnace filters), or providing increased enjoyment. 

1. Perks for On-time Rent Payments

Some programs provide perks for on-time rent payments. The perks typically accumulate in a points system and can be traded in for goods and services. 

2. Convenience

An example of a convenience would be installing a package locker. The locker provides improved convenience and safety for residents that participate in the program.   

3. Streamlining Requirements

An example of streamlining requirements is an air filter delivery program. The air filter would be delivered just before the scheduled replacement interval (typically annually). 

4. Increased Enjoyment

An example is discounts on home furnishings such as linens. These discounts can substantially improve first-time tenants that are furnishing an apartment from scratch. 

So, Who Do I Call?

The good news is that there are companies that streamline rewards packages. Here are a few to consider:

• Second Nature (www.secondnature.com): Claim to be the industry’s only fully managed resident benefits program. Provide a range of benefits from move-in throughout the lease term. 
• Real Page (www.realpage.com): Provides resident benefits program software. Includes a benefits program for multifamily properties. 
• Paylode (www.paylode.com): Provides software for residential benefits programs. Also, has a handy reference section on their website. 

Recommendation

Property managers should strongly consider a full range of resident benefits packages to formally add to the lease. The additional costs should more than be offset by increased resident durations and payments per benefit. This makes them a no-brainer in any economy!