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LANDLORD GUIDE

Are you a property landlord? If so, these features will offer guidance on tenants, insurance and everything you need.

LANDLORD GUIDE

Client Money Protection Scheme

Client Money Protection Scheme.

On 27 March 2017 Housing Minster Gavin Barwell confirmed via twitter, that Client Money Protection Insurance would be made mandatory for agents in England following the recommendation of a working group set up in Autumn 2016.

What is Client Money Protection Insurance?

CMP ensures the money that a landlord or tenant pays to a letting agent is safely protected against misappropriation by the agency.

Letting agents that have CMP must maintain and operate a separate account with their bank, where all client money is held separately from their operating funds. Examples of client money can include tenants’ deposits (before and after they’re protected), landlords’ repair funds, rents, service charges and arbitration fees. So, in the unlikely event that money is mishandled by the agent, the landlord or tenant’s money is secure, and they can make a claim from the relevant CMP insurance scheme for its return.

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