Why reconciliation matters
Human errors, software updates, or the rapid pace of property management can all lead to discrepancies. Left unchecked, these issues can create financial liabilities and reputational risks for agencies.
Jennifer Markham, founder of The Letting Partnership says that when agents come to them TLP for client accounting, they begin by reconciling their protected deposits and in over 90% of cases find mismatches.
Discrepancies between agency records and TDP scheme data can lead to several issues:
- Deposits may not be protected within statutory timeframes, resulting in potential fines;
- Out of date records can result in overpaying deposit insurance premiums or underpaying, which might result in penalties or coverage issues;
- Mismatched records can complicate the end-of-tenancy process, leading to disputes and delays.
For agents, regular reconciliation of deposit records is not just good practice; it’s essential for compliance and operational efficiency.
Smart solutions for letting agents
Despite its importance, reconciling tenant deposit records with TDP scheme records can be a significant challenge. Recognising the complexities agents face, innovative solutions are emerging to make deposit reconciliation more manageable. For example, DepositAudit™, a specialist tool, has been designed to review and reconcile tenant deposit records against TDP scheme data. Such tools identify mismatches, flagging discrepancies early so that agents can act before they escalate into penalties or disputes.
Deposit reconciliation is just one area where outsourcing and technology can support agents. The Letting Partnership offers a range of services to simplify operational demands and maintain compliance.
Outsourced Client Accounting
TLP provides comprehensive client accounting services, including reconciliation of client bank accounts and access to a fully ring-fenced account if required. This service eliminates administrative overhead while ensuring compliance with client money regulations.
Rent Arrears Chasing
Effective rent arrears management is another critical area for agents. By outsourcing this task to a dedicated team, agents can improve recovery rates while maintaining positive tenant relationships.
HealthCheck
TLP’s award-winning client money HealthCheck offers an independent review of client money handling. It’s a trusted tool used by agents to meet industry body and Client Money Protection (CMP) membership requirements, providing peace of mind for agencies and landlords alike.
A holistic approach to compliance
By combining proactive reconciliation processes with outsourced support services, letting and estate agents can focus on providing excellent service to landlords and tenants while minimising operational risks. Whether it’s tenant deposits, client accounting, or arrears chasing, leveraging specialist expertise allows agencies to stay ahead of compliance challenges and improve efficiency.
With solutions like DepositAudit™ and a comprehensive suite of support services, agencies can adopt a proactive approach to compliance, saving time and reducing financial risk. Exploring external solutions tailored to the unique needs of the property sector can provide valuable peace of mind and operational clarity.
The Letting Partnership is a specialist CASP (Client Accounting Service Provider) for UK letting agents. To find out more about The Letting Partnership call them on 01903 477903 or visit their website.
The Letting Partnership: Client accounting
The Letting Partnership was created with the express purpose of supporting and promoting professionalism within the property industry specifically in the areas of client accounting and Client Money Protection.
