Tenant Incentive Programs Work – How to Implement Them

Tenant Incentive Programs Work – How to Implement Them

Working with the tenants and keeping them content isn’t an easy job. You deal with different personalities, ideas, backgrounds, and issues on a daily basis. Unfortunately, most property managers don’t develop a good working relationship with the tenants and that leads to increase in the number of complaints and turnovers. Today, property managers are looking for new and interesting ways to keep tenants engaged and happy. At Nova Eagle, we believe that tenant incentives are a great way to accomplish that goal.

What are Incentives?

You’ve probably heard of frequent flier miles. These are airline reward programs offered to loyal customers. It’s also a good way to encourage people to use the same airline regularly. What most people don’t realize is that these incentives work and can be successfully applied to property management as well. Consider the following facts:

  • Almost every commercial organization has an incentive program in place, including your local supermarket.
  • Around 70% of those organizations offer more than 3 different programs, and some offer more.
  • An incentive program has a success rate of 80%. These organizations do achieve their goals with their incentive programs.

Obviously, incentive programs are beneficial and they can be implemented in different ways. But can they be applied to property management?

How to Apply Incentive Programs to Property Management

The first thing to do is discuss this program with the property owner. After all, you need their consent to offer discounts and incentives. You should prepare a rock solid plan and proposal to convince the owner of the benefits. You can include a number of incentive programs, including:

  • Discounts on Rent – Most property managers and owners want their tenants to pay their rents on time. You can encourage this if you offer incentive programs to tenants who do pay the rent on time. For example, if a particular tenant has paid their rent before the due-date for 6 months in a row, you can offer them a 10% or 20% cashback on their next payment. You can decide how big or small the incentives will be.
  • Rewards for Registering Complaints – You want to encourage your tenants to report problems promptly. This would help keep your property in shape and minimize damage. Small rewards like gift cards or a month’s gym membership can encourage tenants to register their complaints.

Incentives don’t always have to be monetary rewards or cash back. If you have a good plan in place, you can encourage your tenants to cooperate without spending too much.

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