“Protecting your Rent and Investment”

Client Money Protection

A number of unscrupulous Letting Agents have been prosecuted for mysteriously ceasing trading, holding many thousands of pounds in client monies.  The result is that it is now a legal requirement that letting agents subscribe to a Client Money Protection (CMP) Scheme.  The requirement began on 1 April 2019. For the protection of Callaways’ clients, we subscribed to such a scheme long before it became a legal requirement.

The National Approved Letting Scheme (NALS) estimated that residential letting agents hold around £14 billion in client monies.  This consists mostly of rent.  Moreover, it is only right that these monies should be fully protected.  It is no different to the way in which tenants’ deposit monies have been protected since 2007.

It is therefore essential to ensure that your letting/managing agent belongs to one of the government-approved Client Money Protection schemes.  The only ones currently approved are provided by Client Money Protect, Money Shield, NALS, Propertymark, RICS and UKALA.   A Client Money Account with a bank or building society authorised by the Financial Conduct Authority must hold these monies.

Professional Indemnity Insurance

Agents must also hold professional indemnity insurance.  They must have appropriate client money handling procedures in place.  Their chosen protection scheme’s certificate should be displayed at their offices and on their website.   Should they fail to do this, they face a £5,000 fine (or £30,000 if they fail to join an approved scheme altogether).

We take our role as our valued clients’ investment managers very seriously.  All rents are fully protected so you can sleep easy knowing your investment is not only in safe hands but double protected via one of the Client Money Protection Schemes, in our case, ARLA Propertymark.

Contact ARLA Propertymark Licensed Callaways for details of our Lettings services.  Call 01273 735 237 or email enquiries@callaways.co.uk