All residential letting and property management agents that handle client money are legally required to join a client money protection scheme.
Client money protection is a form of insurance that protects the landlords and tenants’ money held by a letting agent. If the money is misappropriated, lost, or stolen or if the agent goes into administration, landlords and tenants can contact the agent’s client money protection provider to make a claim for compensation.
A more recognisable Client Money Protection scheme is operated by the travel industry. All travel agents in the UK are required by law to be a member of an independent client money protection scheme, typically ABTA or ATOL. When you pay for your holiday or travel arrangements to the travel agent it is protected against the agent going bust or stealing the money. You claim against ABTA or ATOL rather than the travel agent. Client Money Protect works in exactly the same way.
Reid & Dean are members of Client Money Protect, the UK’s largest independent government approved scheme.
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