Property Management Referral Program Tips and Tools

As a property manager, you’re constantly looking for new owner leads – people who are interested in owning a rental property that you’ll manage and becoming your client. 

Whether they’re just buying a property or they’ve owned one for a while, there are plenty of owners looking for someone to manage their day-to-day operations, like maintenance and sourcing tenants. But where to find these owner leads who are interested in what you have to offer? 

The best way is through referrals, whether they come from other owners, tenants, realtors, people at local businesses, or other members of your community. And referrals aren’t as unpredictable as you might think. A referral program provides a reliable way to harness these recommendations and find the owner leads you seek – leads who are more likely to trust you for their property management needs. Here’s how to start one. 

What are property management referral programs?

Property management referral programs  (or owner referral programs) motivate people to refer possible owners – their friends, family, and other peers who own or will own properties – to your property management services. When someone they refer signs up for your services, you reward the referring person and the new owner. It’s a win-win-win!

To effectively manage a referral program, it’s best to utilize a referral software platform that automatically monitors the referrals made by your advocates. Avoid using a DIY approach where people need to mention the name of the person who referred them, as this could lead to missed referrals. With software, you can easily track referrals without manual effort and quickly assess the performance of your program.

Benefits of property management referral programs

Why implement a referral program? Your property management business can enjoy numerous advantages, all stemming from the trust that individuals have in their friends and acquaintances.

People are more inclined to trust recommendations from their peers over any other advertising methods. This means that owners who come through referrals are significantly more likely to close (sign a contract) – up to four times more likely than those who aren’t referred. This makes a referral program an efficient way to grow the amount of properties you manage. Additionally, referred owners often represent a higher quality, as they are typically referred by people who know they are a good fit and know they want someone managing their properties

In addition, referred owners are more likely to continue letting you manage their property, which boosts your lifetime value and lowers your turnover rate. In fact, referred clients tend to have about a 16% higher lifetime value compared to other owners. 

And referral programs are generally more cost-effective than traditional advertising. They also carry less risk—you only pay when the referred individual signs a contract, and that payment goes directly to the referring party and the newly managed owner. Plus, thanks to software, you have the ability to monitor each referral made by your customers, giving you insight into how well your program is performing.

Referral software for property managers [Free Tools]

These referral tools for property managers are a free and easy way to help you start your referral program.

Want a fully automated referral program for your property management business? Run your referral program with us at Referral Rock. Find out how we can build your program with you (and tailor it to your unique needs)

Essentials for program success

For the most successful property management referral program, you’ll need:

• A referrable business, with people ready to recommend you
• Knowledge of possible referral sources
• A clear picture of the ideal owner client
• A reliable way to track referrals/issue rewards (that’s where referral software comes in)
• A motivating, dual-sided reward that’s easy to understand and redeem
• A program that’s easy to access and use overall
• A consistent promotion strategy, so possible referrers know about your program

Here’s how to nail all the essentials.

Make sure you’re referable

Before launching a referral program for your property management company, it’s important to ensure that you’re ready to receive referrals. Rewards get the shares rolling in – but only if you’ve built a reputation for quality services in the first place. Here are some indicators that people are ready to help you out.

Firstly, do you have a number of long-term clients? Those who have been with you for a while are more inclined to refer others, as they are familiar with the benefits of trusting you as a property manager.

Secondly, are you committed to providing an outstanding experience as a property manager? Going the extra mile – like promptly addressing repair requests, being available for tenant and owner inquiries, and sourcing tenants – can significantly encourage both existing owners and their tenants to refer you to others. They see your excellent service, and know you’ll provide it at other properties.

Additionally, look for signs from individual owners that they are happy and willing to recommend you. 

• For example, have they posted positive comments or reviews? 
• Or, have you noticed any instances where they’ve suggested your services to other owners? 

If they’re already promoting your property management online, they’re likely to continue doing so, especially if there are rewards involved.

Remember all your referral sources

Other owners you already manage are a great source of owner leads. But so are the tenants you help manage, and other local community connections who are related to you, but don’t compete with you (think home repair professionals, home services professionals, real estate agents, or movers, for instance). 

Your vendors – people you work with to help you manage the property – are a particularly good referral source. These are the people you trust with repairs and maintenance on your property, like the plumber, appliance repair person, cleaner, grounds servicepeople, and security officers. If you’ve built a strong relationship, they’ll be glad to offer referrals because they know the built-in benefit – you’ll probably trust them with their services for the new property, meaning more business for them.

Choose valuable rewards

Rewards, or referral fees, are the reason people will refer your service to owner leads. So, select them carefully. They need to reflect the value of a referral to your business, and be at or slightly below your typical acquisition cost. And if competitors in your area have a rewards program, you’ll want your own rewards to be competitive.

You’ll also need to offer double-sided rewards – rewards for both the referrer and new owner lead. This both incentivizes people to send lots of referrals, and motivates newly referred leads to sign on. Plus, this way, referrers won’t be concerned about “selling out” their peers just to get an incentive.

Since you’re likely going to have lots of different referral sources, it’s best to streamline things and stick to a reward anyone can appreciate. Ideally, both the referrer and new owner reward should be in cash or gift cards – people will appreciate the freedom to use their reward however they’d like.  But if the referrer is a property owner you currently manage, you might give them both credits towards their management fee instead.

Note: Some people, like realtors, may not be able to accept referral fees if state and local laws prohibit it. If you run into a case like this, offer to make a donation to charity in the referrer’s name instead.

Next, decide when the referring person will get their reward. This could be right after their peer signs the property management agreement, after they pay for your services, or sooner – after they’re qualified, like when they sign up for a prospect meeting with you.  You could also offer the best of both worlds –  a smaller reward after a lead is qualified, and a larger reward when the lead signs the property management contract or makes the payment. This is known as a multi-step reward. 

To keep interest high, you might also consider giving out rewards in tiers, where the value of the reward increases after someone gets a certain number of peers to sign contracts. Or, give out higher rewards for higher-value referrals, in a percentage commission structure.

Here’s more on how Referral Rock can help you set up referral rewards of all kinds.

Ask for referrals the right way

One of the best ways to secure referrals is simply by asking for them. This should be an easy task, especially if you’ve built strong relationships with the people you serve.

Think about reaching out for referrals when you sense that your clients, tenants, and vendors are satisfied and you’re fresh in their minds:

• They’ve given you a positive review  
• They’ve posted a kind comment about your work on social media  
• You’ve received enthusiastic feedback during an in-person chat  
• You’re sending an invoice (or paying one, in the case of your vendors) 
• It’s the first or second anniversary of a satisfied owner’s contract
• You know they’ve already recommended your services to others outside of your referral program.

Once you’ve nailed the timing, how to make the ask?

• Let them know how much you value their choice to work with you.
• Remind them of why they are a great fit to refer others. 
• Be specific! Inquire if they know anyone who matches the ideal client profile and need your services.
• Lastly, include a straightforward link to your referral program to encourage clients to take the next step easily.

Make sharing super-simple

The simpler you make it for your tenants to refer others, the more referrals you’ll receive. Therefore, it’s important to design a referral experience that is as efficient as possible.

With Referral Rock software, you can streamline the referral process with our One Click Access links. These links let people start referring immediately without any need for registration. Make sure to include these links in all your emails promoting the referral program so people can easily click and share.

Then, when people get to the page or portal, make the sharing experience super easy with these best practices:

• Clearly outline how the program works in just 3-4 simple steps.
• Highlight the rewards, and other benefits of sharing, in a prominent place.
• Allow people to share with minimal clicks or taps.
• Don’t ask them for too much referral information. All you need from them right now is their referral’s name and email. You can get more later, once the referral expresses interest.
• Offer various sharing options that align with how people typically share with friends.
• Provide each program member with a unique referral link they can easily copy and paste.
• Pre-write a message for people to send to their friends, making it effortless for them to share right away. Make sure it sounds conversational, like it’s coming from a peer, and not salesy.
• Ensure there’s a clear and easily accessible call-to-action on the landing page that encourages sharing.

Promote, promote, promote

The more people you engage in your referral program, the greater your chances of generating successful referrals and increasing your revenue. It’s essential to promote your program through various touchpoints.

Here are some effective ways to spread the word about your referral program:

• Send dedicated emails, both personal and mass
• Share information on your social media platforms
• Include details in newsletters
• Display signs and postings around your managed properties
• Distribute flyers in tenants’ mailboxes or place them on or under their doors
• Mail out flyers to existing property owners
• Feature the program on your property management website, including in your menus
• Highlight it on your online tenant portals and/or online owner client portal
• Discuss it in personal conversations with tenants and owners
• Place a link to the program in your email signatures

Keep in mind that promotion shouldn’t end once the program is launched. You’ll be gaining new owner clients – and new tenants that you serve – rapidly, who might not all know about the program. And even if they do, it’s important to keep the program fresh in everyone’s mind. Develop a strategy to promote your program regularly.

We suggest sending a dedicated email about the program at least once every quarter, along with utilizing social media, newsletters, and other email communications in between to maintain consistent awareness of your program.

Track referrals with software

Starting a manual referral program with printed cards or emailed forms might seem appealing, but it can complicate tracking. A far more effective solution is to utilize referral software.

This software creates a unique, trackable link that people can share in whatever way suits them best. Each link allows the software to automatically connect every referral back to the person who shared it. Plus, since the link captures the moment a new owner signs on, people can receive immediate rewards for successful referrals.

With this software, you can easily monitor the status of each referral, identify who made it, and know when it’s successful, keeping tenants informed about their referrals.

Referral Rock provides user-friendly referral software suitable for all types of businesses, including property management. Our team of onboarding specialists is here to assist you at every stage of setting up and managing your program. We have the knowledge to get your program launched rapidly, so you can start enjoying the benefits right away.

Express gratitude for referrals  

Even if the friend they referred doesn’t end up signing a contract, it’s a great idea to send a thank you note to show your appreciation for their effort. This can be a handwritten note or a quick thank you email. Additionally, promptly rewarding people when they qualify for an incentive is a key way to demonstrate your gratitude—this can be automated with software.  

Keeping program participants informed about the status of their referrals is also crucial for showing appreciation and encouraging them to refer more people.  

Referral Rock’s Monthly Summary emails are a fantastic tool for keeping participants updated. These emails provide a personalized monthly recap of each person’s referral program activities, including the referrals they’ve made, new customers they’ve brought in, and the rewards they’ve received. This Monthly Summary helps keep your program fresh in peoples’ minds, increasing the likelihood that they will continue to share.

Start a property management referral program

There are so many benefits to running a referral program for your property management service. If you’ve determined that you’ve made yourself shareable, why not use a referral program to drive consistent sharing and gain new clients?

Automation will make running a referral program much easier than setting up a DIY referral scheme. Rely on Referral Rock software for detailed tracking, instant issuing of rewards, and top-notch service that lets you get the most out of your referral program.