11:09 AM, 11th August 2016, About 6 years ago 20
I use a letting agent to manage a few of my student HMO’s. The current tenants have paid a full twelve months up front as they are international students, however my letting agent pays me on a monthly basis.
I phoned up NALS as I was researching a letting agent for another property in a different part of the country and found out that the only provide client money protection for up to three months of the rent.
I have questioned my HMO letting agent and the answered that they do this to offer mutual protection for landlord and tenant in case the landlord property gets repossessed etc.
I was wondering is this a valid argument? My concerns are of course what happens if the agent goes bust/disappears and also on a more monetary stance I can be earning interest (however little) on funds which are actually mine and improve my cashflow (of course the agent would subtract all their fees on the bulk payment)
I would appreciate the views from other landlords that use agents or agents themselves.