4. Property management
4.2 Financial management
126.96.36.199 For agents only: client’s money
You should keep adequate and up-to-date accounts and records to show that money has been paid into a dedicated client account and to explain all dealings with that money.
You should advise your client or tenant that the monies will be held in a designated client account and
provide them with details of this account.
A client account should be in credit at all times. There must not be any borrowing from one client’s fund to pay another client or those entitled to receive money from the latter’s account.
The clients’ money should be deposited into a Financial Conduct Authority (FCA)-authorised bank or
Unless the client or tenant has agreed otherwise in writing you should credit interest earned on any client bank accounts to the appropriate client or tenant.
The letting commission or other charges due to the agent from the client must not be taken from a tenant’s deposit. You must ensure at all times that the deposit is released only in compliance with the terms under which the deposit was originally held.
You should be a member of a clients’ money protection scheme.
As discussed in section 2.2.1 an agent has a strict fiduciary duty towards his landlords and this is particuarly the case with money held for clients.
You should aim to be a member of SafeAgent.