What is a possible conflict of interest for a representative acting for both landlord and tenant?

When a representative acts for both a landlord and a tenant, the potential for a conflict of interest arises particularly in the context of negotiating terms that may conflict between the two parties. Since the representative has an obligation to both the landlord and tenant, they may find themselves in a position where the desires or needs of one party directly oppose those of the other.

For example, if the landlord wants to increase the rent while the tenant is seeking a reduction, the representative must navigate these conflicting interests. In such scenarios, it can become challenging for the representative to maintain impartiality, as pursuing the interests of one party may inherently disadvantage the other. This dual representation scenario can lead to situations where the representative’s loyalties are tested, making it crucial to recognize and manage these conflicts through proper disclosures and potential recusal from certain negotiations.

This situation distinctly highlights the complexities and ethical considerations that come into play when serving multiple clients with potentially opposing interests, underscoring the importance of clear communication and transparent practices to mitigate conflicts.