Wednesday 1 May 2019

How biased is a letting agent?

I am currently looking for renting an apartment through a letting agent. I am definitely this letting agent's client; however, my landlord is this agent's client if I find and rent an apartment through this agent. Then this agent needs to take care of both my landlord's benefits and my benefits, often my benefits and my landlord's benefits do contradict. When my benefits contradict with my landlord's benefits, then how does the agent balance its clients' benefits? Is the agent likely to be biased towards any party?
My belief is the agent is very likely to be biased towards the landlord. Landlord is much more likely to stay with the same letting agent than someone who is renting a property because people who rent are likely to move around and different places have different letting agents while properties do not change locations. Therefore, it is not surprising that letting agents are biased towards their long term clients. However, letting agents cannot take no care of tenants' benefits at all, because this will make letting agents difficult to let properties to people and make the tenant periods shorter than they should be. Maybe agents can use information asymmetry to make some more benefits for themselves and their landlords; however, this is not consistent, especially when the Internet has help to improve information perfection.
Overall, letting agents are likely to be biased towards their landlord clients, but they still have to take some care of tenants' benefits.

No comments:

Post a Comment