Dilemma: Right vs. Right
Market or 'Friend' Rental Rate?
Samuel approves leases for Bayside Properties, a real-estate company. One day, Elaine, a real-estate appraiser, approached Samuel to inquire about leasing office space in one of the companys buildings. Elaine had previously rented space in a Baysides building, but that building had been sold and Elaine had to find new space at the end of her lease. Samuel would like to rent to Elaine--she is not only an ideal tenant with an excellent credit record with the company, but Samuel knows that Elaine is in the position to speak favorably to others about the companys good service and careful maintenance of their buildings. In addition, Elaine is a close family friend.
Samuel has the perfect space for Elaine coming available just when she needs it. The problem is, rental rates have increased quite a bit since Elaine signed her last lease with Bayside, and it is more than she wants to pay. Elaine asks Samuel for a break on the rent. What should he do?
Analysis
Samuel sees this dilemma as a self-versus-community dilemma. He would like to do a favor for a good friend--and save himself the job of checking out the credit record of prospective tenants--but he knows his job is to maximize rental income for the good of the company as a whole. From the point of view of justice versus mercy, Samuel feels it wouldnt be ethical to charge less for one tenant, while at the same time he understands Elaines problem of finding space she can afford, and wants to help her out. At first look, though, it seems as if Samuel has no choice but to charge the going rate for the property.
Thinking the dilemma through some more, though, Samuel sees that the dilemma could also be viewed as a short-term versus long-term situation: Charging the going rate would result in more money for the company in the short term, but there was a good possibility that doing Elaine this favor would result in more business for Bayside in the future because of Elaines business contacts. Also, by renting to Elaine, Bayside would save the cost of advertising the space or paying a brokers commission (good for the short term), and who knows how long the property might be empty before it was rented (a possible long-term consideration)? And what if the new tenant proved to be a "problem tenant"? Elaine, after all, had proven herself to be a model tenant.
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