The importance of choosing a lettings agent with Client Money Protection

The Government recently announced that it intends to make Client Money Protection (CMP) mandatory for all letting agents.

This move has come after six years of campaigning from companies such as SAFEagent – a mark used to denote firms who use approved CMP schemes. A CMP scheme protects money which is being held by an agent, for example rent.

Agents who are part of schemes ARLA/NAEA, NALS, RICS and UKALA operate completely separate client accounts where money is held independent of the general firm funds.

This means that if an agent was to misappropriate a client’s money they would be able to use the scheme to recover the funds.

Although each scheme has its own scope and terms the general idea behind them is the same.

Over the years there have been high-profile cases of fraudulent letting agents stealing from landlords and tenants – one Staffordshire-based agent stole £123,000 from clients before the company fell into administration.

An estimated £2.7 billion is held by letting agents in client accounts, but unfortunately there are still too many cases of criminal letting agents stealing landlord and tenant cash.

Although the government has made the decision to enforce CMP as mandatory for all lettings agents, currently it is still very important to check your agent is part of an agent regulatory organisation which already provides CMP.

All lettings agents are required to clearly display on their website and in their office whether or not they are part of a CMP scheme.

Many also choose to display the SAFEagent logo as a clear symbol that they are a trustworthy agent who has the correct measures in place to protect their clients’ money.

May 15 to 19 was SAFEagent Awareness Week.

The week was the most successful yet and continued to highlight the importance of choosing a lettings agent that is part of a CMP Scheme run by an agent regulatory body or trade association.

Felpham-based lettings agent Abacus Letting Services places the highest importance on ensuring its tenant and landlords’ money is safe and therefore uses a CMP scheme and prominently displays the SAFEagent logo.

If you have any questions on Client Money Protection and choosing the right lettings agent for you give Abacus a call on 01243 842048 or email: [email protected] and its expert staff will be happy to assist.