Client money protection: what your letting software has to support

The rule, in gov.uk's words

gov.uk states: 'You must join a client money protection scheme if you're a letting or property management agent in the private rented sector in England and you hold clients' money.' The schemes exist so that landlords and tenants are compensated if the agent cannot repay their money, for example if the agent goes into administration, and gov.uk is explicit that this is different from tenancy deposit protection. The penalty is stated just as plainly: 'You may be fined up to £30,000 if you do not join a client money protection scheme' (gov.uk, read 15 August 2026).

The six approved schemes

• Client Money Protect
• Money Shield
• Propertymark
• RICS
• Safeagent (previously NALS)
• UKALA Client Money Protection

Two more requirements that software touches

gov.uk sets out two further duties. First, you must hold your clients' money in an account with a bank or building society authorised by the Financial Conduct Authority. Second, you must get a certificate confirming membership of the scheme you join and provide it to anyone who asks, free of charge, and display it in any office where you deal with the public and on your website. The fine for not displaying it or not providing it on request is up to £5,000.

The rules differ across the UK. gov.uk states that Scotland has different rules, that in Wales you need to join a money protection scheme before applying for an agent licence through Rent Smart Wales, and that in Northern Ireland you do not have to join a client money protection scheme at all. If you operate across borders, check each jurisdiction rather than assuming the English rule.

What the suppliers say about client money

PayProp

The most specific. States it holds all processed funds directly in CMP-recognised NatWest client accounts, in its words providing Financial Service Compensation Scheme (FSCS) protection, plus separate professional indemnity insurance, and a date-stamped uneditable log of every user action including editing bank details and paying out funds.

Reapit

Advanced auditing and transparent client accounting built in to track and protect client monies, with daily automated account reconciliation.

Street.co.uk

Client accounting included in Street Lettings with no bolt-ons and no extra cost, bulk receipting and reconciliation in one action, and a full audit trail maintained.

Dezrez

Reconciliation with direct bank integration, bulk payments to landlords and contractors, and tools stated to protect client money.

Goodlord

Collects rent, deposits and move-in monies with the agent's oversight, and displays a Client Money Certificate on its own site.

Arthur Online, Acquaint CRM and Apex27

All three describe client or tenant accounting as a module or feature. None of the pages we read describes a client account banking arrangement or a scheme relationship.

Every entry above records what appears on the supplier's own pages, read on 15 August 2026. None of it is a verification that a product satisfies any scheme's audit requirements. The scheme membership, the FCA-authorised client account and the certificate are all obligations on your agency.

Five questions to ask before you sign

1. Can the system produce a client account reconciliation, at a date, that an accountant reviewing our scheme membership would accept without rework?
2. Who can edit a landlord's bank details, is that action logged, and can the log be altered?
3. Can we separate client money from office money in the system, and does a report exist that proves the split at any past date?
4. If we hold money for multiple entities, does the system keep separate client ledgers per entity?
5. On the day we leave, what format does the client ledger history come out in, and how long is it retained?