You must join a ‘client money protection scheme’ if you’re a letting or property management agent in the private rented sector in England and you hold clients’ money.
These schemes make sure landlords and tenants are compensated if you cannot repay their money, for example if you go into administration. This is different to tenancy deposit protection.
You may be fined up to £30,000 if you do not join a client money protection scheme.
The rules are different in:
Scotland
Wales - you need to join a money protection scheme before you apply for an agent licence through Rent Smart Wales
Northern Ireland - you do not have to join a client money protection scheme