Threshold warns of rogue letting agents

TENANTS and landlords are being warned about an upsurge in rogue letting agents who could leave them suffering considerable financial losses.

Housing charity Threshold said they have experienced a significant increase in the number of calls regarding unprofessional letting agents in the past 12 months.

Among the incidents being reported are cases where tenants’ deposits have gone missing, where tenants have been unlawfully evicted and where agents have disappeared with both the landlords’ and tenants’ money.

Chairwoman of Threshold Aideen Hayden said the numbers of cases involving unethical practices by letting agents is extremely worrying.

“Many people holding themselves out as agents are not licensed at all. We have seen cases where agents have gone out of business or simply disappeared with both landlord and tenants monies. It is unacceptable that it is so easy to set up in business as a letting agent with little protection for landlords and tenants.”

She said landlords need to be aware that they are legally responsible for the actions of their agents.

“If an agent does not pay over a tenant’s rent to a landlord, the landlord is at a loss. Similarly if an agent does not return a tenant’s deposit without cause, the landlord is responsible, even if the agent holds the deposit. Too often this only comes to light when the agent cannot be found and the tenant is at a loss of a deposit.”

According to Threshold, about 12% of people in Ireland are living in rented accommodation, and more than 150 unregistered letting agents are currently doing business across the state.

Ms Hayden said that as a result of the recession, a growing number of home owners cannot sell and are forced to rent their property in order to pay mortgages.

She said the lack of enforcement of legislation in this area is simply unacceptable given the money at stake.

“Some agents hold tenants’ deposits and receive rent, putting them in a position of holding a lot of money without any standards to ensure that it is handled ethically.

“We are concerned that there are not tougher measures against unregistered agents – with the increasing demand for the services of letting agents in the private rented accommodation sector, stricter, more transparent and more comprehensive legislation which provides for quick and appropriate sanctions is long overdue.”

Threshold is warning landlords and tenants to only deal with a licensed agent and ideally an agent that is a member of a professional body such as the Institute of Professional Auctioneers and Valuers or the Irish Auctioneers and Valuers Institute.

Picture: Threshold Chairwoman Aideen Hayden.