The official client-money guidance explains the requirements for property agents carrying out letting or management work. Check current membership evidence and the agreement, rather than relying on a logo in an advert.
Check protection before money is handled
Establish whether the agent will hold rent, deposits or other client money and what protection arrangements apply.
- Verify membership of an approved client money protection scheme where required. Check the legal business name and current certificate.
- Distinguish client money protection from tenancy deposit protection and redress membership. One does not replace the others.
- Keep the management terms explaining who receives, holds and transfers money and when statements are issued.
Reconcile statements with receipts
Review money movement rather than relying solely on the agent's headline balance.
- Match rent periods, tenant payments, fees, contractor deductions and transfers to your bank.
- Query unexplained balances and keep supporting invoices. Record money due but not yet received separately from confirmed receipts.
- Check deposit records directly through the appropriate scheme where needed.
Respond to missing money or a handover
Act on specific discrepancies and preserve the evidence.
- Ask for a reconciliation and explanation in writing. Keep statements, bank records and the management agreement.
- Check the relevant scheme's claim and notification rules promptly if money may be missing.
- When changing agent, agree the transfer of balances and records and verify receipt. Do not mark a transfer complete from an instruction alone.
Example: the agent says rent was transferred
A fictional statement shows a rent transfer that has not arrived in the landlord's bank. Ask for the payment date, reference and reconciliation, then verify receipt. The statement entry and the bank receipt are different pieces of evidence.
What to do
- Confirm whether the agent holds rent or other client money.
- Check protection and the complaints or redress route.
- Agree statements, payment timing and document handover in writing.
Evidence to keep
- Agent agreement and scheme evidence
- Statements and payment records
Sources and guidance
- Mandatory client money protection: enforcement guidanceUK Government · checked 20 October 2026