The Association of Residential Managing Agents has launched a first-of-its-kind Client Money Protection to members.
Although CMP schemes are to be mandatory for letting agents from April next year, they are not yet compulsory for managing agents.
However ARMA says that given the sums held by property managers are significantly larger than those held by lettings agents, the need for client protection is all the more pressing.
It says that on average, property managers hold £6.2m in leaseholder money and larger firms could be holding in excess of £100m, whereas the average letting agency holds around £500,000 at any one time.
Money held is made up of clients’ service charges and reserve and sinking funds, all held in trust in individual client accounts.
ARMA says it believes 40 per cent of all managing agents have no CMP in place, meaning that money would not be insured should theft or misappropriation take place.
Its new policy is specifically for the block management sector and is offered through NFU Mutual, underwritten by multinational insurance group RSA.
“The current CMP schemes are not designed to offer the level of protection required within our sector … We want all managing agents and leaseholders to have confidence that their money is safe” says Nigel Glen, chief executive of ARMA.
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Client Money Protection: Because apparently agents can't be trusted not to steal from their clients....
Why not just have agents who are at risk of stealing from their clients forced out of the industry instead of forcing small companies like is to pay out of the ears for silly things like CMP?
Ah well, we're not a charity so I suppose we will have to increase rents to recover costs. £35 a month will allow us to recover our costs from two tenancies over 6 months... If all of our rents go up, that will mean quite a decent pay rise for us here.
We're finding the rising costs of running our business are meaning we're less and less able to accept housing benefit tenants as very few meet affordability criteria now rents in Leicester are shooting up to cover agent and landlord costs.
people who make the policies like politician and council are actually the very person who caused the huge rise in rental in order to keep it going. we are to pay inventory at start and end of tenancy 160 each, niceic certificate and extra work which easily comes up to 2000 where electrician can hike up any work needed done because they are holding our throat with the certificate required by council for hmo, then the professional cleaning wanted by tenant cost 500-600 including professional carpet cleaning 300 each time prior to tenancy and again garden and also not to forget british gas cover which easily comes to 50 per month. all these had to be taken into account in the decision of amount to rent which in this case hike up real fast. yet they are complaining its too high. well folks. i am just looking at both sides. previous years prior to hmo licencing and so call rogue landlord and slum tenants. rent used to be half the amount or less.
dont forget, recently its all about upvc window with the latch to lock with a slight opening for ventilation which effectively caused mould because students and tenants alike are too lazy to do so and with mould, dps claimed its normal wear and tear??? including causing damp in the property and when wash mould off the wallpaper came off the wall and again my deposit so call qualified adjudicator claimed its wear and tear and no deduction off for damages including burnt marks using candles on mantelpiece. where is the place to go for redress? tenants are having a field day with these dps/my deposit adjudicator getting away with damaging property and not having to be liable for it.
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