Just read an article about a letting Agent closing down overnight with no warning and reports of Landlords being left out of pocket.
This led me to think about the predicament of the Landlords involved. No landlord wants to or can afford to lose rental income.
So how can Landlords guard against possible financial losses like this?
It is key when selecting an Agent to choose Agents who carry Client Money Protection (C.M.P). Any agent who is an ARLA member, the Lettings Industry professional body has to carry CMP. An ARLA agent will have undergone stringent financial checks and will have a ring fenced client account where all rents will be held.
This ensures any rent monies and deposits collected by the Agent on behalf of the Landlord are offered the protection of CMP should the Agent not fulfil their obligations towards their Landlord clients.
From 1st April 2019, all Lettings Agents must carry CMP. This is a positive step forward for our industry in my opinion. It offers Landlords peace of mind and protects their investment. And it helps to raise standards in the industry as all Letting Agents will be required to meet strict financial standards in order to obtain CMP.
For any Landlords out there, does your Agent hold Client Money Protection? And if not, are they going to be able to comply with the financial requirements to get it in place by 1st April 2019?