- Landlords are offering rewards like 2% cash back or points redeemable for home goods, aimed at increasing tenant retention.
- Programs by Stake, Incentco, Piñata, and more attracted over 2M renters nationwide, incentivizing timely rent payments and lease renewals.
- Although renter rewards may seem modest compared to rising rents, they provide tenants with small but meaningful financial perks.
Paying rent used to just secure a place to live. But these days, landlords are sweetening the deal with renter rewards programs that offer cash back or points for various perks, as reported in WSJ.
Cashing in on Loyalty
With rising rent costs, these small incentives are catching the attention of renters who see them as a way to make their biggest monthly expense more manageable.
Indeed, around 2M renters across the U.S. are currently participating in such programs, according to recent reports.
Driving The Trend
Programs like Stake, Incentco, and Piñata are helping landlords encourage tenants to stay longer and renew leases, even when rents go up.
For example, Stake offers renters cash back for paying rent on time, covering any online payment fees. Piñata allows tenants to redeem points for products and gift cards from major retailers like Amazon (AMZN) and Target (TGT).
These programs are proving effective for landlords, as tenants in reward programs are more likely to renew leases, sometimes even at higher rents. According to Piñata, 97% of renters using its rewards renewed their leases in 2024, compared to the national renewal rate of 65%.
Modest But Meaningful
Although these rewards may seem modest compared to the high cost of rent, they still provide some financial relief.
Ernest McKee, a renter in East Fort Worth, TX, gets 1% cash back from Stake, which he uses to help cover additional fees, like property maintenance charges. Another renter, Joelle Manning in Summit, NJ, uses her Piñata points to purchase household items like reusable paper towels.
Even though the dollar value of rewards is generally smaller than traditional concessions like a month of free rent, they still offer some relief for renters. For many, the rewards programs are a small but welcome bonus, especially as rent prices continue to climb.
The Bigger Picture
Real estate analysts caution that renters should consider the overall value of their rental agreements and not be swayed solely by rewards programs. Although these incentives can add up, they may not outweigh significant rent hikes.
However, as landlords use these programs to gauge how much they can raise rents while retaining tenants, the trend of rent rewards is likely to continue growing.
