Many accountancy businesses are operating reduced services and even getting an accountant into the office for a visit is proving challenging during the pandemic. As a result, Propertymark agents offering lettings are turning to the online HealthChecks provided by The Letting Partnership to ensure their business is compliant.
Regulated agents using the Client Money HealthCheck have saved an average of £900 on their annual audit and in the last 12 months alone this translates into a total saving of over £1m in auditing fees.
While over 90 per cent of members are eligible for HealthChecks, many are yet to take up the opportunity to save time and money.
Completing the HealthCheck online only takes an hour. With all these benefits in place, it’s surprising that more letting agents aren’t signing up for the service. This could be down to lack of awareness or because they have always carried out their audit a certain way and haven’t thought to try it out.
We believe there are millions of pounds more savings to be gained by Propertymark members which they are missing out on.
An audit from an accountant, if you can get one, can easily leave the agent with a bill of £3000 - £4000. As the industry works hard to recover from lockdown, surely every penny saved counts.
What is Client Money HealthChecks?
They are a cost-effective, fast, online alternative to traditional accountant reports. HealthChecks were created to support and promote professionalism within the property services industry in the areas of client accounting and client money protection.
All agents need to do to complete a HealthCheck is provide information about their active portfolio, their processes for handling client money, and details about their tenant deposits. This will avoid lengthy accountant visits during the pandemic where we continue to work from home, this is an essential service for the industry.
HealthChecks are also used as part of the membership application process for new agents wishing to join Propertymark. To maintain their Propertymark membership regulated agents who handle client money must have their client accounts inspected annually. Inspections can only be carried out in one of two ways - an accountant’s report completed by a chartered/certified accountant or The Letting Partnership’s HealthCheck.
Even during the pandemic, the client money examination report is a key component of compliance for membership of Propertymark for principals, partners, and directors.
The statutory requirements for client money protection also require regular inspection of client accounts to ensure that letting agents are all maintaining expected standards of conduct in relation to client accounts.
The Letting Partnership has been the market leader in outsourced client accounting and client money protection services since 2006 and provides HealthChecks to Propertymark members.
