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Search costs and apartment rents
Journal article   Peer reviewed

Search costs and apartment rents

John D. Benjamin and Kenneth M. Lusht
The journal of real estate finance and economics, Vol.6(2), pp.189-197
03-1993

Abstract

APARTMENT RENTS PROPERTY MANAGEMENT SEARCH COSTS
Differences in apartment rents are explained with a hedonic equation that includes property management variables omitted in prior studies. Our joint hypotheses are that differences in contributions to rent exist among property managers as a function of their ability to reduce search costs to renters and that the manager's fee for providing search-cost-reducing information is reflected in the amount of rent paid. Two proxies for the level of search costs are found to be positively and significantly related to the rent level.

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