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 externally audited on a regular basis. 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, you / they are probably afforded absolutely no cover if problems occur.
For further information on the ‘Safe Agent’ scheme, please see www.safeagents.co.uk.
