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Is Your Money Safe? A Simple Safeguarding Tip for Kent Landlords and Tenants

Is Your Money Safe? A Simple Safeguarding Tip for Kent Landlords and Tenants

In this two-minute read, we explain why your letting
agent should be part of a client money protection (CMP) scheme.

lettings sector used to be the Wild West of the property market, with a small
group of unscrupulous agents giving the industry a bad name.

the introduction of stricter regulations in recent years has sent many cowboy
agents riding off into the sunset.

no industry is perfect, and landlords and tenants still need to be wary of
rogue operators.

you’re looking to do business with a letting agent, one of the first things you
should check is that they are a member of a client money protection scheme

law, all letting agents in England who handle ‘client money’ – in other words,
hold rent or holding deposits on behalf of customers – must be a member of a
CMPS. (Note: this is different to a tenant deposit scheme, which agents should
also utilise.)

CMPS is basically an insurance policy. It means that if an agent goes bust or
does a runner while holding funds on behalf of clients, the landlords and
tenants affected receive compensation. (This didn’t always happen in the
old days.)

can I tell if an agent is a member of a CMPS?

are six approved CMPSs: Client Money Protect, Money Shield, Propertymark, RICS,
Safeagent (previously NALS), and UKALA Client Money Protection.

the record, here at CWB Property, we’re members of CMPSs:
Client Money Protect.

must display details of their CMPS membership on their website and in their

verify an agent’s membership claim by cross-checking with the relevant CMPS (you
can do this online in minutes).

good practice

If an
agent gives you a blank look or the run-around when you ask about their CMPS
membership, alarm bells should ring.

good letting agent will have no trouble answering the question (and be
impressed by your industry knowledge).

agent who isn’t a member of a CMPS can be fined up to £30,000. Local
authorities, through their Trading Standards operations, enforce these rules.

all of us here at CWB Property, stay safe and thanks for reading.