There have been recent examples in Northampton and Rugby of Lettings Agents ceasing to trade, and large sums of landlord’s money going missing. These were well established firms too! Rents have been collected from tenants and not passed on. Deposits have been taken from tenants and not registered, leaving the landlord liable for the full value.
The ‘Safe Agent’ scheme is designed to show landlords that their money is safe. To display the ‘Safe Agent’ logo, a Lettings Agent must have Client Money Protection Insurance (CMP) – this pays out if an Agent mishandles client (landlord) money. To qualify for this insurance, the agent’s client accounts must be independently certified. Industry experts estimate that over 60% of lettings agents do not qualify for CMP as their accounts are not in sufficiently good order.
Belvoir in Northampton and Rugby are ‘Safe Agents’. Our client accounts are checked regularly and we carry full CMP. Landlords can hence be assured that their money is being correctly handled and they are fully covered in the event of any dishonesty or loss.
- Do you have properties with lettings agents that are not in the ‘Safe Agent’ scheme?
- Do your friends and colleagues?
If so, they are probably afforded absolutely no cover if problems occur. For further information on the ‘Safe Agent’ scheme, please see www.safeagents.co.uk.