Client money protection
Client Money Handling and Controls Procedure
Last reviewed: August 2026
Download the complete procedure as a PDF. A free electronic or hard copy is also available on request by emailing info@propertysmartlondon.com.
1. Purpose
This procedure explains how Property Smart London Ltd safeguards, records and controls client money received through lettings, property management and any other agency activities in which client money is held.
2. Client bank accounts
Client money is held in commercial designated client accounts with Lloyds Bank plc, an authorised bank. The account title includes “Property Smart London Ltd” and the word “Client”. Client money is kept separate from our business funds.
We retain written confirmation from the bank that all money in these accounts is client money and that the bank has no right of set-off or combination against our business accounts. Client money remains available on demand without undue delay or penalty.
3. Access and security
Access is restricted to authorised persons, credentials must not be shared, multi-factor authentication is used where available and access is removed promptly when no longer needed.
4. Money received
Money received is identified to the relevant landlord, tenant and/or property and recorded in the appropriate transaction record. Unidentified payments are investigated before distribution. Client money received will normally be banked within two working days.
5. Payments and bank-detail changes
Before paying a landlord, we check that funds have cleared, fees and VAT are correctly calculated, authorised expenses are accounted for and the balance is correct. Payments are made only to verified details. Money due to a client is paid promptly and no later than one calendar month after it becomes due, unless lawfully retained or otherwise agreed in writing.
Requests to change payment details are independently verified using contact information already held wherever practicable.
6. Fees, contractors and maintenance
Management fees and VAT are deducted only where permitted by signed Terms of Business. Payments for contractor or maintenance work are supported by an invoice or other payment record, with evidence of landlord approval retained where required.
7. Records and monthly reconciliations
We keep records of money received and paid from each client account. The Director prepares a reconciliation of every client bank account each month, comparing the bank-statement balance, cashbook or transaction-record balance and total individual client-ledger balances.
Within 10 working days of preparation, each reconciliation is independently checked and signed by an appointed checker who did not prepare it. Differences are identified, investigated and corrected with a clear audit trail.
8. Interest
Interest is recorded and attributed where applicable. Unless a written agreement permits Property Smart London Ltd to retain interest, it belongs to the relevant client and is accounted for accordingly.
9. Record retention and insurance
Client-money records are kept securely for at least six years from the end of the relevant accounting period or from the date the relevant client account reaches a nil balance after the relationship ends, whichever is later. Property Smart London Ltd maintains suitable professional indemnity insurance.
10. Responsibility and standards
The Directors are responsible for ensuring that this procedure is followed and reviewed periodically. Our procedure should be read alongside the Propertymark Conduct and Membership Rules.