This can either be an accountant’s report or a Letting Partnership’s financial HealthCheck. Using a Client Money HealthCheck can be a cost-effective, fast, online alternative to a traditional accountant’s report,
Why use a HealthCheck?
Anyone involved in the lettings industry knows that complying with all the necessary compliance requirements is time-consuming and often daunting. This is where HealthChecks can be of value to agents and their businesses.
Accountants are professionals who excel at numbers, but they may not fully understand the lettings industry. However, having the assurance that all client accounts are in good order is paramount to ensuring compliance with the statutory requirements for Client Money Protection.
Submitting a Client Money HealthCheck is easy, simple, and straightforward. No need for an accountant, no need for an office visit. Plus, 94 per cent of Propertymark Agents are eligible to submit a Client Money HealthCheck instead of the traditional accountant’s report.
The Letting Partnership (TLP) has been completing HealthChecks for Propertymark members for six years. From the data analysis, TLP has gathered, it is possible to highlight a number of compliance errors agents can make when managing their Client Accounts which is not possible if only purely relying on an accountant’s reports.
Have you checked your client account lately?
An agent requests from the bank their ‘off set letter’ for the account which they believed to be a Client Account, and finds it is in fact no longer a Client Account. Therefore, the agent will not be complying with statutory requirements.
Data has shown that agents can hold monies within an Interest Account, rather than a client account. If the account is for client money you need to be able to have access to instant withdrawal.
HealthChecks have also shown that some agents are processing client money through a business account as they were ‘unaware’ that they needed a client account and error payments such as car finance, wages etc were being paid out of the same account.
Managing deposits
Several discrepancies with deposit records have also been highlighted from the data gathered, particularly with the insured scheme. For example, an agent does not close the deposit record once the tenant has left. Therefore, their scheme records show that they are holding more monies than they are.
This leads to a discrepancy; the account should match the scheme and if it doesn’t this can lead to balances not matching and may cause problems. Furthermore, it means that the agent is paying for insurance which is not necessary.
How to do a HealthCheck
It takes three easy steps to submit the required information:
- Collate active portfolio information and tenant deposits using the checklist provided
- Fill in the online questionnaire using the checklist information, which will take less than an hour
- Submit the screenshots or downloads of client account(s) bank statements and the summary page from the deposit protection provider.
Added value with a HealthCheck
An audit from an accountant can easily cost £3000-£4000. Client Money HealthChecks is a cost-effective, fast, online alternative to traditional accountant’s report and allows the owner to have an up-to-date business profile instantly – the number of lets, average rent collected, are you compliant etc., for just £330.00 (including VAT) which is a discounted rate for Propertymark members.
Make the change
Thousands of agents have already switched to HealthChecks, and over 300 agents have rated the service on Trustpilot and provided a 5-star rating.
Protect Your Propertymark Status – Start Your HealthCheck or contact The Letting Partnership on 01903 477 900.
The whole process from start to finish was very straightforward, have completed via this method for a couple of years now will use again.
Simple and effective solution to an otherwise expensive procedure. Found them to be very efficient and very quick, would highly recommend them.
