Landlords Should Benefit From CMP
While there is also a lot of regulations landlords need to follow, there is also regulation impacting on professionals who landlords engage. As of the 1st of April 2019, all letting and management companies who handle client’s money need to be part of a Government approved scheme. This scheme is referred to as the Client Money Protection, CMP, scheme and without it, letting and management firms are not allowed to trade.
CMP provides compensation to tenants and landlords when funds have been misappropriated or fraudulently used by a letting or management company. This money may be rent, it could be unprotected deposits, or it could be any form of client funds. There is no limit to the claim an individual can make in these circumstances, so even there has been a misappropriation of funds, there is backing for you.
Landlords need support and to feel confident about their work
While some landlords will think this won’t impact on their business too much, anything which provides additional support and confidence is good. Far too many landlords have found themselves in a difficult financial position due to being let down by their letting or management company.
Sometimes the letting company makes mistakes which leads to financial problems and at other times, they fraudulently use the money. No matter the circumstances surrounding the misuse of funds, if landlords lose out, they could end up losing their business. Therefore, this safety mechanism should provide confidence and support for landlords, helping them to provide a higher standard of service to tenants.
It is important landlords are aware of areas where CMP isn’t able to assist them. While the scheme offers confidence and support in many financial matters, not all problems can be resolved with this support.
Be aware of limitations with CMP support
Not all disputes or financial matters can be resolved by the CMP scheme. If the deposit were protected by an insurance backed scheme or a statutory custodial scheme, CMP would not assist landlords. If client money has been stolen by an employee where the firm has Professional Indemnity Insurance, CMP will not offer a solution to landlords. If client money is being retained by a third party organisation which isn’t directly connected to the agent or management firm, CMP will not resolve the case.
Any landlord wishing to claim under the CMP scheme should submit their application within 12 months of the incident or case taking place. There is no set time for a resolution, as each case is reviewed on its own merits. However, most organisations providing this support will keep landlords informed of the progress of their claim, and what they need to do next if anything.
If you are a landlord looking for guidance in providing the best standard of service to tenants, or you are looking for peace of mind in running your business, we are here to help. We know many landlords have been calling out for increased CMP representation in the industry, and if you have any issues, please get in touch.
Moore & York Lettings’ Leicester office caters for properties to rent in the city centre and covers a wide radius of towns and villages including Market Harborough, Lutterworth, Hinckley, Markfield, Melton Mowbray and Oakham.
1 Rutland Street,
0116 275 63 60
Moore and York Lettings
Moore and York Lettings
‘Moore and York Lettings’ Loughborough office caters for properties to rent in the town centre and covers a wide radius of towns and villages including Birstall, Coalville, Kegworth, West Bridgeford and Thrussington.
18 Devonshire Square,
01509 21 45 46