The relationship between tenant and landlord is a key factor in renters remaining in their properties.
A survey by agency group LRG shows that 68% of tenants say the single biggest factor to make them stay in their rental home long term is the relationship with their landlord or agent.
That placed it well ahead of feeling settled in the area (50%), stability in personal circumstances (45%) and confidence in building management and maintenance (44%).
LRG says that in a market where supply is tightening and choice is narrowing, the quality of the human relationship at the heart of a tenancy is the single most powerful driver of tenant retention.
With much of the Renters Rights Act coming into effect in little more than six weeks time, LRG’s data offers an early read on how tenants are responding to that shift:
Some 24% say they now expect to stay longer in their current home as a result of the change to periodic agreements.
Cost pressures remain a powerful shaping force. More than seven in ten tenants say wider cost pressures are influencing where they choose to live, with a third saying those pressures are influencing their decision a great deal.
Nearly half of tenants report having fewer accommodation choices than a year ago, and 44% say it has been more difficult to find a home that meets their budget than the last time they searched.
The data also reveals a generational shift in what tenants are looking for.
Long-term suitability has overtaken cost as the most commonly cited priority among tenants when choosing their next home, cited by 52% of respondents. That figure rises among under-34s, who have also seen the steepest increase in expectations of what a rental home should offer:
And 42% of this age group say their expectations have increased in the past year, the highest of any cohort.
The generation entering the rental market at the most difficult point in recent memory is also the generation demanding the most from it.
Landlords, for their part, have arrived at a remarkably similar conclusion about what they want from a tenancy.
Some 72% say their preference is for tenants who stay indefinitely, compared with just 28% who prefer tenants for a fixed period. Of those who do prefer a fixed term, the overwhelming reason given is to allow for rent reviews, redecorations or tenancy renewals rather than to regain possession of the property.
LRG says its data adds the human dimension that statistics alone cannot capture.
The tenant who stays is not staying because of legislation or market conditions. They are staying because someone returned a call quickly, handled a repair without issue, and treated them as a person rather than a contract.
The landlord who keeps a good tenant does not do so through rent or tenancy incentives. They are doing so through responsiveness, respect, and consistency.
And the agency states that the most durable lettings relationships are built on the same foundations as any other long-term relationship: communication, trust, and reliability.
Allison Thompson, National Lettings Managing Director at LRG, comments: “The rental market is growing up.
Tenants are not just looking for somewhere to live. They are looking for somewhere to settle.
“And landlords, overwhelmingly, want the same thing. The shift to periodic tenancies is bringing that aligned ambition to the surface.
“The landlords who understand that tenant retention is the most valuable thing they can achieve in this market will be the ones who come through the next few years in the strongest position.”
This article is taken from Landlord Today