In the light of rentability problems, real estate managers are increasingly interested in the appreciation of the performance of their dwelling stock. Meeting the stringent demands of customer satisfaction is the greatest challenge facing real estate managers today. This paper deals with tenant's appreciation, housing performance and the way in which housing managers can cope with this. The performance concept is of major importance for a client_oriented approach. In our view the quality is determined by the match between offered and demanded performances. The better a housing stock matches the demanded performances, the higher the appreciation of tenants on the whole and the more successful housing management. We will see that the appreciation of performances varies for different groups of tenants, so called 'target groups'. In the paper the relation between the 'supplied' performance and the appreciation of different tenants groups will be investigated. Firstly we will deal with the measuring of supplied performance. Secondly, we will enter on the concept of 'demanded' performance by analysing the relation between the supplied performance and the appreciation (not: the preference) of the user. Thirdly we will distinguish several steps to match supplied and demanded performance. Next, the application of the method is illustrated on a extensive research in Eindhoven, a middle size city in the Netherlands. This research made it possible to analyse the relation between housing performance and tenant appreciation. Moreover, we will see that the appreciation is not only determined by the type of household, but also by the household income en the inclination to move. These insights are of great importance for housing managers and place them for a great challenge: how to manage tenants' appreciation.