inducement to letting agents.

Fian

So it seems that local authorities are offering financial inducement to letting agents who house hap tenants.



These agents are supposed to be working exclusively for the landlord.


Section 1(2) of the prevention of corruption act 1906 (as amended) provides as follows:

(2) A person who—

(a) corruptly gives or agrees to give, or

(b) corruptly offers,

any gift , consideration or advantage to an agent or any other person, whether for the benefit of that agent, person or another person, as an inducement to, or reward for, or otherwise on account of, the agent doing any act or making any omission in relation to his or her office or position or his or her principal's affairs or business shall be guilty of an offence.

http://www.lawreform.ie/_fileupload/RevisedActs/WithAnnotations/HTML/EN_ACT_1906_0034.htm


If such an incentive were offered "corruptly" to a letting agent acting as an agent for a landlord it would constitute a criminal offence.

M.Cribben

Does landlord need to OK the decision ?

L1011

I can see this

a: Not actually being of any assistance and just wasting cash
b: Ending in tears

Increasing housing supply is what is needed, not bribing inducing people to take one class of tenant over another. Spend the cash on social housing.

spaceHopper

So they drive up house prices by buying house on the open market instead of building them. Now they are distorting the rental market by bribing EA's

Graham

Fian wrote: »

So it seems that local authorities are offering financial inducement to letting agents who house hap tenants.

Do you have a source for this snippet of info, I'm curious to see the detail.

The Student

Graham wrote: »

Do you have a source for this snippet of info, I'm curious to see the detail.

Was on RTE Radio 1 earlier today. Rep from Housing Authority (I think) and from the IPOA discussing it.

kalych

Graham wrote: »

Do you have a source for this snippet of info, I'm curious to see the detail.

https://www.rte.ie/news/2018/1101/1007930-rent-landlords/

Sleeper12

It's a complete non started. Another FG publicity stunt.

Absolutely no point offering 500 to the letting agent when he /she does not make the decision. If it were to have any chance of success the bribe should be offered to the landlord not the agent. They need to make hap more attractive to landlords. Nothing short of that will encourage landlords to accept hap.

It does nothing to solve the homeless crisis/housing shortage. One landlord accepting this will most likely put another family on the homeless list. It's like musical chairs.

More housing is the only solution. Anything else is just dicking about with the the figures

Askthe EA

IPAV have already come out and said it would be a conflict of interest.

It is a conflict of interest (unless the agent pays it over to the LL).

It just doesnt make sense and I'd be surprised if many (any) agents have ever actually taken it.

Marcusm

I just can’t see how this has been approved by anyone with a scintilla of intelligence/common sense.

The agent is employed by and responsible to the landlord. Any inducement to the agent is an interference (?tortious interference) in that contractual relationship.

The money is paid to the agent over and above the rent payable to the landlord; what service is being rendered by the agent and how is this a valid able use of taxpayer funds?

It is akin to a commission paid by a vendor to a civil servant to procure a government contract; that would be a corrupt practice redolent of a banana republic or an absolute monarchy directing payola to members of the royal family.

l5auim2pjnt8qx

https://www.independent.ie/irish-news/murphy-defends-fee-for-agents-who-let-to-homeless-37484448.html

Eoghan Murphy has defended the bribes of €500 to estate agents by Dublin Local Authorities to place Hap tenants before private tenants into Landlords properties
without there knowledge.

Time to go!!! The people of Ireland voted for a change in this type of corruption
last time around .

https://www.rte.ie/news/2018/1101/1007930-rent-landlords/

One cannot defend the indefensible of downright murky Bribes & Corruption that
is taking place .

Askthe EA

This thread will die a death before it starts.

L1011

Merged with existing thread with less hyperbolic title

Baby01032012

Landlords are already been offered inducements by HAP, homeless bodies etc. I advertised an apartment 9 months ago let it privately at 1390 inline with the rpz rent cap. I received numerous emails from the above offering me up to €2000 plus under table money if I agreed to house their social tenants.

Askthe EA

Askthe EA wrote: »

This thread will die a death before it starts.

L1011 wrote: »

Merged with existing thread with less hyperbolic title

Told ya!!

Graham

While I'd be surprised if the legalities of this approach haven't already been vetted, there is something particularly distasteful about this entire scheme.

I can't imagine it will help much either which just makes the entire thing even more bizarre. Surely any incentives would be much better targeted at landlords.

Askthe EA

Graham wrote: »

Surely any incentives would be much better targeted at landlords.

Bad optics for govt.

The Student

Graham wrote: »

While I'd be surprised if the legalities of this approach haven't already been vetted, there is something particularly distasteful about this entire scheme.

I can't imagine it will help much either which just makes the entire thing even more bizarre. Surely any incentives would be much better targeted at landlords.

I suspect it will benefit the letting agent who suggests a person to a landlord and the landlord accepts the letting agents suggestion.

I know of some landlords who accept the letting agents suggestion without questioning them to any great depth.

This is easy money for the letting agent, he "suggests" those that he has most to benefit by so. Its a win-win for the letting agent. Gets paid by the landlord and gets paid from the above scheme.

Graham

The Student wrote: »

This is easy money for the letting agent, he "suggests" those that he has most to benefit by so. Its a win-win for the letting agent. Gets paid by the landlord and gets paid from the above scheme.

I genuinely can't see many agents even considering this scheme. The details are sketchy (at best) but isn't it something like €500 per 5 referrals?

ED E

Graham wrote: »

I genuinely can't see many agents even considering this scheme. The details are sketchy (at best) but isn't it something like €500 per 5 referrals?

2500 per 5, you need to hit 5 to trigger a payout.

The Student

Graham wrote: »

I genuinely can't see many agents even considering this scheme. The details are sketchy (at best) but isn't it something like €500 per 5 referrals?

I would expect some will avail of it. I used a "reputable" agent last year (due to the sheer number of responses I got to an ad I placed) and they offered to do a cash in hand job if I wanted to save the VAT.

Trust me some will do it.

Askthe EA

The Student wrote: »

I would expect some will avail of it. I used a "reputable" agent last year (due to the sheer number of responses I got to an ad I placed) and they offered to do a cash in hand job if I wanted to save the VAT.

Trust me some will do it.

Theres a difference between a guy dodging Vodka And Tonic and a guy putting a HAP tenant into his clients property though.

The Student

Askthe EA wrote: »

Theres a difference between a guy dodging Vodka And Tonic and a guy putting a HAP tenant into his clients property though.

And therein lies the issue. The letting agent is either legit or they are not. How does the landlord trust the letting agent. Is the landlord actually getting the best tenant for his property or is the letting agent doing whats best for himself and not the landlord.

This has the sense of the "bidding wars" in property sales at the moment.

Baby01032012

The Student wrote: »

And therein lies the issue. The letting agent is either legit or they are not. How does the landlord trust the letting agent. Is the landlord actually getting the best tenant for his property or is the letting agent doing whats best for himself and not the landlord.

This has the sense of the "bidding wars" in property sales at the moment.

Not to tar all with same brush but the aim of the letting agent is to get the property filed quickly with as little leg work as possible.

Hence why I’m suing one as I lost a years rent and lot of stress over Eastern European prostitution gang they put in and never checked references.

Askthe EA

Baby01032012 wrote: »

Not to tar all with same brush but the aim of the letting agent is to get the property filed quickly with as little leg work as possible.

You're not taking into account the value of repeat business to an agent. Letting fees are relatively straight forward (when done properly - sorry to hear of your troubles) work compared to sales.

In the context of the OP, there is one reason why a HAP tenant may be more beneficial to a landlord. They tend to stay longer than a private letting and as such the agent would get less recurring business from a HAP letting and the landlord incur less fees.

But generally, I cant see an agent risking repeat business from a HAP letting unless their client specifically wants one.