Since the enactment of the Property Services (Regulation) Act 2011, property service providers have had to abide by the new regulations. We have set out below some tips to help avoid common breaches to these regulations;

Funds belonging to the Property Service Provider

Where the provider is beneficially entitled to client money (ie. where an amount of rent is collected to the client account and the provider is due a % of this as a letting fee), the funds should be transferred to the office account “in a timely manner”- within 3 months.

Bank fees and interest

The bank holding the client account should be instructed to take any bank charges from the office account. This will prevent non-client expenditure from being paid out of the client account.

Recording cheque payments

Where a cheque payment is made from the office account, the details of the payment should be recorded. This should be done on the stub and a copy of the cheque should be retained for bookkeeping purposes.

Multiple client accounts

Where the Property Service Provider keeps more than one client account, these accounts should be kept in the same bank unless the PSRA authorises otherwise.

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