📊 Definition
Resident Satisfaction Score / Net Promoter Score (NPS) measures how likely residents are to recommend your property to others. It's a leading indicator of retention, renewals, and property reputation.
The Formula
Scored from -100 to +100, passive scores (7-8) are excluded
Example Calculation
Survey results from 200 residents:
Where Does the Data Come From?
Collect NPS from resident surveys and feedback:
- Move-In Surveys: Onboarding experience (30-60 days after move-in)
- Annual Surveys: Overall satisfaction and renewal intent
- Move-Out Surveys: Exit feedback (understand detractor reasons)
- Ongoing Feedback: Service request follow-ups, interaction surveys
Use platforms like SatisFacts, Grace Hill, ORA (J Turner), or custom surveys.
Who Uses This Metric?
Property Managers
Track resident sentiment and identify service issues before they impact renewals. Low NPS (below +20) correlates with high turnover. Address detractor feedback immediately to prevent non-renewals.
Regional Managers
Benchmark properties and identify underperformers. Property with +15 NPS while portfolio averages +40 needs immediate attention—likely has operational or staffing issues affecting resident satisfaction.
Asset Managers
Correlate NPS with renewal rates and NOI performance. Properties with +50 NPS typically achieve 60-65% renewal rates. Properties with +20 NPS struggle to hit 50% renewals. High NPS drives retention and profitability.
Why This Metric Matters
1. Leading Renewal Indicator
NPS predicts renewal rates and impacts online reputation scores. Residents scoring 9-10 renew at 70-80% rates. Residents scoring 0-6 renew at <30% rates. Track NPS quarterly to forecast renewal performance and adjust retention strategies.
2. Reputation & Leasing Impact
Promoters generate positive word-of-mouth and online reviews. Properties with +50 NPS have 4.0+ star online ratings, driving higher tour-to-lease conversion. Detractors leave negative reviews, harming leasing velocity.
3. Operational Performance Metric
NPS reflects service quality, maintenance responsiveness, and staff performance. Declining NPS signals operational issues before they show up in financials. Act on detractor feedback to prevent revenue loss.
💡 Pro Tip
Focus on reducing detractors more than increasing promoters. Moving 10 residents from detractor (0-6) to passive (7-8) improves NPS by 5 points and dramatically improves retention. Address detractor issues immediately—they're flight risks.
Frequently Asked Questions
What's a good NPS for multifamily?
Excellent: +50 or higher. Good: +30 to +50. Acceptable: +15 to +30. Concerning: +0 to +15. Poor: negative NPS. Industry average is +30 to +40. Class A properties typically achieve +40 to +60. Class B/C: +20 to +40.
How often should I survey residents for NPS?
Annually: comprehensive satisfaction survey (all residents). Move-in: 30-60 days after move-in. Move-out: exit survey. Ongoing: after service requests or interactions. Target 30-40% response rate minimum. Incentivize participation ($25 rent credit, gift cards).
What causes low NPS in multifamily?
Top detractor drivers: slow maintenance response, unresolved issues, poor communication, noise complaints, package theft, pest problems, dated amenities, staff turnover, rent increases perceived as unfair. Address top 3 issues to improve NPS by 10-15 points.
How does NPS correlate with renewal rates?
Strong correlation. NPS +50 → 60-65% renewals. NPS +30 → 52-58% renewals. NPS +10 → 45-50% renewals. NPS negative → <40% renewals. Every 10-point NPS improvement typically adds 2-3% to renewal rate.
Should I act on individual detractor feedback?
Yes—immediately. Detractors are non-renewal risks and potential negative reviewers. Have PM call within 24-48 hours, understand issues, create action plan. Personal follow-up can convert detractors to passives/promoters and save renewals.
Track Resident Satisfaction
BubbleGum BI integrates with resident survey platforms via our online reputation tools to track NPS trends and correlate satisfaction with renewal rates—helping you improve retention proactively.
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