Why Resident Rewards Programs Are Delivering Real Results
November 25, 2025
The Changing Rules of Reputation Management for Property Managers
Most apartment communities today understand the fundamentals of online reputation management: monitor key review platforms, respond promptly—ideally within 24 hours—and use resident feedback to improve the living experience. For example, if multiple reviews highlight challenges with your tour path, it may be time to reevaluate your approach.
However, recent updates from the Federal Trade Commission (FTC) have introduced new considerations for multifamily operators. These rules, which took effect in October, emphasize authenticity and transparency in all online review practices. Under the new guidelines, communities can face significant penalties for publishing fabricated, misleading, or incentivized reviews.
The FTC now specifies that “online reviews must be genuine, from real customers with actual experiences,” and prohibits businesses from creating, purchasing, or disseminating fake reviews—including those produced by artificial intelligence. It also bars incentivizing reviews with a particular sentiment, whether positive or negative.
Activities Now Prohibited Under FTC Guidelines
Property teams must avoid the following practices or risk enforcement actions:
Coordinated review swapping: Employees or team members from one community leaving positive reviews for another within the same portfolio.
In-house or employee-generated reviews: While not outright forbidden, these reviews must clearly disclose the individual’s relationship to the company. Only employees who legitimately experience the community as residents or prospects—such as on-site associates—should participate.
Incentivizing reviews: Offering cash, gift cards, concessions, prizes, or any form of reward in exchange for positive reviews is now strictly prohibited.
The rules also ban review suppression, which occurs when a business selectively displays positive reviews while omitting neutral or negative ones. If a property chooses to highlight reviews from a platform such as Google, it must clarify that these do not represent all available feedback. Additionally, property teams cannot discourage or intimidate residents from posting honest negative reviews under any circumstances.
Clarifying the Gray Areas
These updated requirements may feel restrictive, but the core principles remain manageable. Property teams can still encourage satisfied residents and prospects to share their experiences—they simply cannot offer anything in return. Patterns of inorganic feedback, such as a sudden surge of glowing reviews from a single associate’s tours, may raise red flags if investigated. Importantly, the new rules apply only to activity occurring on or after Oct. 21.
How the Guidelines Affect Reputation Strategy
Many communities strive to maintain a perfect 5.0 rating, but research increasingly shows that consumers trust more balanced scores. Ratings between 3.8 and 4.4 are often perceived as more credible, and prospects will scrutinize both positive and negative feedback. If a community responds professionally and substantively to criticism, prospects are far more likely to view the property favorably.
Response timeliness also remains critical. BrightLocal data shows that 89% of prospects are likely to choose a business that responds to all reviews, compared to only 44% who would consider one that does not engage at all. A review page devoid of responses signals poor communication—a major concern for potential residents.
Moving Forward With Transparency
While the core components of reputation management remain consistent, the new FTC guidelines add an important layer of accountability. More than ever, property teams must ensure that all posted feedback is authentic, unincentivized, and free from internal or AI-driven manipulation.
This shift aligns well with the multifamily industry’s longstanding focus on transparency and resident experience. Positive reviews will always help drive leasing success, while negative reviews offer valuable insights for improvement.
Ultimately, by prioritizing genuine resident feedback and adhering to the FTC’s standards, properties can build trust, uphold regulatory compliance, and demonstrate the authenticity that today’s renters—and regulators—expect.
