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If it seems like it has been years since the issue of mandatory client money protection was first raised, that\u2019s because it is. On numerous occasions, we\u2019ve been told about possible dates for implementation of regulations, but it hasn\u2019t happened. Now, following a campaign by ARLA Propertymark, the finishing line is in sight, and all lettings agents in England will have to belong to an approved CMP scheme by 1 April 2019.<\/p>\n
Now, we\u2019re not always sure that the Government has the property rental sector\u2019s best interests at heart, but in this case, we\u2019re all in favour. There have been too many cases where tenant\u2019s funds have \u2018disappeared\u2019. Our industry is fighting hard to build and strengthen a professional and responsible reputation, and we cannot allow the continuation of practices which are unscrupulous, dishonest, negligent or just plain sloppy.<\/p>\n
Of course. it isn\u2019t just tenants who can lose out. Landlords too can incur significant losses if the rent they\u2019re due isn\u2019t protected. It has been too easy for lettings agents to beg, borrow and indeed, steal from their clients.<\/p>\n
Let\u2019s assume that a letting agent starts with completely honest intent. They have two accounts, one their working capital account and one for client money. If financial difficulties occur, without CMP, it\u2019s far too easy to dip into clients\u2019 money. It may be something as minor as a few days of cash-flow crisis, but we\u2019ve heard of cases where situations have escalated, money has been siphoned out of the agency, and businesses have collapsed owing tens of thousands of pounds to tenants and landlords.<\/p>\n
For years, other professionals have worked with similar protection schemes. Since the introduction of the Consumer Rights Act 2015, it\u2019s been a requirement for every lettings agent in England to display whether or not they are a member of a CMP scheme. Letting Agents in Wales already have to comply as part of the Rent Smart Wales initiative. Finally, England is catching up.<\/p>\n
Sadly, some tenants and landlords remain unaware of CMP schemes. Let\u2019s hope that a little more publicity will help to alert them.<\/p>\n
In my view, agents should be in CMP schemes regardless of legislation and certainly shouldn\u2019t wait until the April 2019 deadline. In fact, I\u2019d go as far as to say that it\u2019s scandalous if they\u2019re not. \u00a0This industry has had its rotten eggs for too long, and they have to go. The tenant fee ban may be a blunt instrument, but it will, at least, wipe out a lot of rogue traders.<\/p>\n
Client Money Protection is a serious issue as reflected in the proposed penalties. Local Authorities will be given powers to fine agents up to \u00a330,000. You can be fined \u00a35,000 just for failing to display the correct scheme membership details on your website or at your premises.<\/p>\n
I\u2019d like to ask any agent not currently operating a CMP scheme what they\u2019re waiting for. Why wait for legislation to force you to do what\u2019s clearly the right thing?<\/p>\n
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If it seems like it has been years since the issue of mandatory client money protection was first raised, that\u2019s because it is. On numerous occasions, we\u2019ve been told about possible dates for implementation of regulations, but it hasn\u2019t happened. Now, following a campaign by ARLA Propertymark, the finishing line is in sight, and all […]<\/p>\n","protected":false},"author":2,"featured_media":11204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n