Safe Agent a scheme for letting agents who have full client money insurance have called for all agents to be regulated into having client money insurance. Of course if they did this then their main function would be erased – which is to highlight agents which do comply with best practice.
I sometimes get asked when a landlord comes on the phone – how much do you charge? It’s a fair question – but I would much rather landlords ask whether I have client money protection! Then ask about fees….
Having client money protection means that the funds held by an agent, be that rent, a tenants deposit is under written by insurance such that if the agent goes bust or abscond then the landlord and tenants will not lose out unduly.
These schemes frequently involve operating separate client and office accounts, and not mixing client and business money which is clearly best practice. If your agent is a member of Propertymark. ARLA or RICS you can be assured that your agent is covered, by client money protection. Just make sure that their membership is up to date.
For example our Propertymark membership details can be found here…at this link on the postcode.
I know of no other industry where commercial organisations are required to handle money with so little regulatory protection for their customers.
