AimDuring the last decade competition for landlords in the Netherlands has increased. Increasing competition between landlords has forced them to become more costumer oriented. For that purpose they concentrate on the enhancement of customer satisfaction. It is assumed that satisfaction immediately leads to customer loyalty. (See also Heskett et al 1997). By improving housing conditions and services (so called ‘housing package’) they hope to enlarge ‘tenants satisfaction and loyalty. Our research tries to find out which aspects of this housing package influence tenants satisfaction and which relation exists between the overall satisfaction and costumer loyalty.The overall satisfaction with the housing package is conceived as a complex aggregation of satisfaction with the separate attributes of the dwelling estate, the physical and social environment and the services. But what is loyalty? Loyalty in housing is often seen as reflected by the tendency to move house. The relation with the overall satisfaction shows to be very weak (Dogge & Smeets, 2002) In this paper is searched for other variables: The length of stay the tendency to recommend ones housing situation to others. Both satisfaction and these tree indicators for ‘loyalty’ are measured in a survey among tenants of social landlords.MethodsStructural Equation Modelling was used to estimate the relationship between satisfaction with several attributes of dwellings semi-public spaces, living environment and services and the overall satisfaction with the housing package and to estimate the relationship between overall satisfaction and loyalty (Byrne, 2001).In a survey, among 7066 tenants of housing association SWS in Eindhoven, 137 variables were used as indicators for satisfaction with the housing package of the housing association (Dogge et al, 1999). By using four confirmatory factor analyses the indicators where grouped into factors that explain the satisfaction of the dwelling, the semi-public space, the living environment and the service. Next, the indicators that formed the different factors in the results of the four confirmatory factor analyses were aggregated into new constructs (like size of dwelling, layout of dwelling etc. See figure 2). Those new constructs are used as the observed variables in a second order factor analyses. In the first order the relationships between those observed variables and the satisfaction with the dwelling, the semi-public spaces, the living environment and the services (all latent variables) are estimated. In the second order the relationship between satisfaction with dwelling, the semi-public space, the living environment and the services and the overall satisfaction with the housing package (latent variable) is estimated. Besides these two orders also the relationship between overall satisfaction (latent variable) and the tendency recommend ones housing situation to others (observed variable) is estimated. ResultsIn the second order factor model the aggregated construct that resulted from the confirmatory factor analyses and the tendancy to recommend ones housing situation to others are used as observed variables. The standardized regression weights are interpreted as indicators for the relationship between the various variables in the model. All these relationships appear to be significant.Overall satisfaction with the housing packageThere is little variance in the weight of the satisfaction with the dwelling , the semi-public spaces, the living environment and with the services in the overall satisfaction with the housing package of the landlord. The weight of the satisfaction with the dwelling is a little higher than the weight of satisfaction with the living environment and with the services. The weight of the satisfaction with the semi-public spaces is a little lower that the satisfaction with these aspects. - Satisfaction with the dwellingSatisfaction with the availability and quality of conveniences in the dwelling and the maintenance condition of the dwelling appear to be most critical constructs in the overall satisfaction with the dwelling.- Satisfaction with semi-public spacesThe variance in the weight of the satisfaction with the used constructs in the overall satisfaction with the semi-public spaces is not very high. - Satisfaction with living environmentSatisfaction with the (absence of) nuisance in the neighbourhood and satisfaction with the other residents in the neighbourhood appear to be most critical in the overall satisfaction with the living environment.- Satisfaction with servicesThere is little variance in the weight of the satisfaction with the used constructs in the overall satisfaction with services. - Overall satisfaction and loyaltyThe research shows that there is a weak relation between overall satisfaction and tendency to move house or length of stay. However the overall satisfaction with the housing package increases the tendency to recommend ones housing situation to others also increases.