Tenant retention driven by landlord relationships

Landlords hoping to keep tenants in place for longer may need to focus less on rent levels and more on the relationship at the centre of the tenancy, research reveals.

According to the Winter 2025/26 Lettings Report by LRG, it highlights that when asked what would most encourage them to stay long term, 68% of tenants said a good relationship with their landlord or agent.

That response placed it well ahead of feeling settled in the area, cited by 50%, stability in personal circumstances at 45%, and confidence in building management and maintenance at 44%.

Landlords want tenant retention

LRG’s national lettings managing director, Allison Thompson, said: “What this data tells us is that 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.”

She added: “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.”

RRA is affecting tenant choice

The report’s timing coincides with structural changes to tenancy agreements when the Renters’ Rights Act takes effect on 1 May.

However, the survey responses suggest the change is already shaping expectations.

Around 24% of tenants say the move to periodic agreements means they expect to remain in their current home for longer.

Also, financial issues for more than seven in 10 tenants lead them to affect where they live.

Roughly a third say those pressures influence their decision on a home’s location a great deal.

Tenant choice declines

Nearly half of tenants report having fewer accommodation options than a year ago and 44% say it has been harder to find a home that meets their budget.

Long-term suitability is now the most frequently cited factor when choosing a property, selected by 52% of respondents.

Among tenants aged under 34, the shift is more pronounced with 42% saying their expectations of what a rented home should provide have grown over the past year.

Landlords responding to the survey expressed similar preferences when asked about tenancy duration.

Some 72% say they favour tenants who stay indefinitely, while 28% say they prefer fixed periods.

Where fixed terms are preferred, the reasons tend to be operational.

Landlords pointed to rent reviews, redecorating or tenancy renewals rather than recovering possession of the property.