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  • Legal FAQs

    Guaranteed Rent & Client Money protection

    We are giving our property to an agent for 2 years on a guaranteed rent scheme.

    They say they have client money protection in place.

    Just wondering how this works?

    Is there any limit & what does it cover?  i.e. if the company goes bust, will my rent, tenant deposits be covered?

    Is this a govt scheme or are there numerous providers?

    Should i get details of the scheme/provider beforehand?

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    There are a number of providers of client money protection.  You should ask your agent which scheme they are registered with, but it is a legal requirement, so if the are not registered, you should choose another agent.

    Look for ARLA accreditation that signposts that an agent has voluntarily committed to professional standards and have a look at - How to vet a lettings agent ... 12 questions to ask





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    All you need to do is check if your agent is part of the CMP scheme.

    It's like how banks are legally obliged to keep the £85k savings protected. Similarly now Estate Agents are required to be part of this scheme to ensure that the rent they collect on your behalf does eventually end up in your hands.

    https://www.clientmoneyprotect.co.uk/cons...at-is-cmp/

    I should also say that if you have a mortgage and insurance then make sure you are allowed to go into a guaranteed rent scheme. Some lenders have weird policies so it's better to make sure that they are happy with the arrangement as well.

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    Saagar

    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences.