1. Purpose
This procedure explains how Selmans Lettings Ltd (hereinafter referred to as "Selmans") receives, holds, records, protects and pays out client money in connection with its lettings and property management services. Selmans holds client money in a UK bank account, presently with Barclays Bank Plc, which is authorised by the Financial Conduct Authority and is protected by the Financial Services Compensation Scheme available on instant access. Selmans is a member of an approved client money protection scheme (CMP) and publishes details of that protection.
2. Scope This procedure applies to all directors, staff and contractors of Selmans Lettings Ltd who handle, record, approve or reconcile client funds. It covers money received from or on behalf of landlords and tenants, including rent, landlord floats, holding funds and other sums held in the course of agency business.
3. What counts as client money
Client money includes money held or received by Selmans on behalf of a landlord, tenant or other client in the course of lettings or management work, such as rent, landlord maintenance floats and money held pending onward payment. Tenancy deposits are treated separately under the tenancy deposit protection rules and are not mixed into the Selmans' general office money.
4. Bank accounts
All client money is paid into a separate clients bank account and kept distinct from the firm’s office account. The clients account is clearly designated as clients account so that client funds are ring-fenced from the firm’s own trading money. A letter from Barclays Bank confirming this is available on request.
Selmans keeps office money separate from client money at all times, except where a mixed receipt must first be identified and then the office portion transferred properly.
It also keeps an internal register of the client account(s) and authorised signatories.
5. Receiving money
All money received is recorded promptly against the correct property, tenancy or client ledger. All such monies are supported by a clear audit trail showing the date received, the amount, the payer, and the payment purpose.
Selmans issues or retains a payment record for all receipts, allocates receipts to the correct landlord or tenant ledger as soon as reasonably practicable and investigates any unidentified receipts promptly until ownership and purpose are confirmed.
6. Payments out
Payments from client money will only be made where there are sufficient cleared funds and the payment is properly due under the landlord agreement, tenancy agreement or written instruction. Selmans will require supporting evidence and internal authorisation before releasing client money.
Selmans will pay landlords only after rent has cleared and any agreed deductions have been accounted for and will pay contractors from client funds only where the landlord has authorised the works or the management terms permit payment.
7. Accounting controls
Selmans maintains accounting records for each client so the firm can show the money held at any time. Monthly reconciliation between the client bank account and individual client ledgers is a standard control in published client money handling procedures.
Selmans maintains separate ledgers for each landlord, tenant and property where appropriate, reconciles the client bank account to the accounting records at least monthly and investigates and promptly corrects discrepancies, with an audit note kept on file.
8. Tenancy deposit handling
Tenancy deposits are handled in line with the Housing Act tenancy deposit protection rules and protected in an authorised tenancy deposit scheme within the required legal deadline. Selmans is a member of mydeposits, which a government approved deposit protection scheme. Published agency procedures commonly distinguish tenancy deposits from other client funds because deposits are subject to separate statutory protection requirements.
Selmans will:
Receive tenancy deposits into the client account only as an interim step before transfer or protection in the relevant tenancy deposit protection scheme, as applicable.
Protect each qualifying tenancy deposit within the legal deadline and serve the prescribed information to tenants as required by law.
Keep a record of the scheme used, the deposit amount, the date received, the date protected, and the repayment outcome.
Ensure deposit releases are made only in accordance with the agreed apportionment, adjudication or scheme instruction.
9. Unclaimed or unidentified balances
Any unidentified or unclaimed client money will be reviewed and reasonable steps must be taken to trace the owner. Some published procedures allow long-outstanding balances to be addressed only after proper tracing efforts and a retained record to support repayment if the client later comes forward.
10. Oversight and responsibilities
The director(s) of Selmans is/are responsible for ensuring compliance with this procedure, with day-to-day administration delegated to authorised staff. Staff handling client money will be trained in accounting controls, fraud prevention and the requirements of the agency’s client money protection scheme.
11. Publication and complaints
Selmans makes this procedure available to clients on request and publishes the required client money protection information in line with legal obligations. If a client raises a concern about money held, the matter can be escalated immediately to a director and handled in accordance with the firm’s complaints procedure.