Got CMP coverage? Best to be sure, as some agencies are getting into a fine mess.
23 February 2023 5631 Views
The law is clear – agencies in England, Scotland and Wales need a valid client money protection (CMP) policy to protect their client’s money just in case things go wrong. And while the vast majority of agents have coverage, those that didn’t across London in 2022 were handed fines totalling £3m, as local authorities cracked down. Even firms that took out a policy are finding they don’t have coverage when there’s been a change in their business.
But getting a CMP policy can be a challenge, with half a dozen schemes in operation all asking for a different combination of client account bank statements and paperwork, adding to your already packed workload or forcing you to rely on your accountant to show them the books.
Our client support team works closely with all the major CMP providers to understand what they need to insure your business, so we can guide you to download the right PayProp reports on your platform. Plus, we can get bank statements directly from our FCA-authorised banking partner, NatWest, that will show your chosen CMP provider exactly what is in your lettings client account.
And that’s not all – our tech can also save you money on any CMP policy you take out!
…At a lower cost
Most CMP policy prices are based partly on the highest amount of money you hold in your lettings client account throughout the year. The more money you hold in your client account, the higher the amount your CMP provider needs to insure, and the higher the risk.
While you might think it’s impossible or impractical to clear out your client account every day, and to pay your landlords, contractors and yourself on the day the rent arrives, daily reconciliations are a doddle with PayProp’s award-winning PropTech. Our platform lets you reconcile and pay your entire portfolio in a few clicks, taking just a few minutes. Plus, PayProp is accessible on any device with a Web browser, so you don’t even need to be in the office, or even the country, to keep up with those payments.
To see the incredible advantages a proper bank-integrated client account for lettings can bring to your CMP costs and business, book a demo with one of our payment experts today!
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