Our landlord advice team have received a number of calls recently in relation to the upcoming requirement for letting agents to have client money protection in place.
This week’s call was from a member looking to find out where they can find client money protection and what exactly they are required to do under the legislation.
We advised the member that they must first find an authorised client money protection scheme. At the time of writing there are 4 schemes that an agent may choose from –
- Client Money Protect
- Money Shield
More are expected before April 1st however.
Once an agent has signed up to become a member of one of these schemes, when dealing with client money, they must ensure that they follow all the requirements of the scheme.
In addition, they are required to display their membership via a certificate.
A copy of the certificate confirming membership must be displayed on the agency website and prominently displayed in each of the agent’s offices in a position where the certificate can be easily seen. If a client requests a copy they are also required to provide this free of charge.
If the agent chooses to change schemes or has their membership revoked, they must notify all their current landlords and tenants in writing within 14 days of this change.
Rupinder Aujla, LAT Manager, said ‘Client Money Protection has been sneaking up on agents and it is surprising how slowly the roll out of schemes has been. Nevertheless, agents must have this in place by April 1st this year so they need to make a choice quickly.’
- If you’re an RLA member and would like to learn more about upcoming legislation changes, give our Landlord Advice Team a call on 03330 142 998 and press option 1.