How PayProp can help with CMP insurance

Valid client money protection (CMP) insurance is a legal requirement for any letting agency that handles client money in England, Scotland and Wales. Agencies that flout this rule could face warnings, fines, and in some cases bans.

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The good news is that technology can make the experience of getting CMP cover practically painless and highly cost-effective. That is where PayProp and its automated rental payment platform can help.

All the right CMP information

Every CMP scheme on the market is different, so supplying the right documents can be a challenge. Fortunately for PayProp users, the platform’s client support team works closely with Propertymark, Money Shield and other CMP providers to understand exactly what they need to insure an agency. As a result, PayProp’s team is in the best position to support an agency in their application, with the right figures and client money statement reports on the PayProp platform as required by their CMP scheme.

How CMP scheme cost is calculated, and how PayProp can help minimise that

Most CMP providers will base the cost partly on the highest amount of money a letting agency has sitting in their client account throughout the year. Therefore, the more money an agency has in a client account at any time, the higher the potential cost of their cover (and the risk to the agency). 

But with well-managed automated accounts, there need never be more than a day’s money in a client account, almost certainly bringing down CMP insurance costs. 

But are daily reconciliation and payouts practical?

Thanks to the unique bank-integrated automation built into the PayProp platform, PayProp-powered agencies can reconcile and pay their entire portfolio in a few clicks, taking just a few minutes. Plus, PayProp is accessible on any device with a web browser, so agents don’t need to be in the office, or even in the country to keep up with those payments.

I went on holiday and managed to continue processing rents for a portfolio of over 200 rental properties using PayProp. It took me 5 – 10 minutes each day.
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Neil Baldock Director | Charles David Casson
What else PayProp offer to help businesses handle client money 

While some banks no longer offer client accounts to letting agents (or require one client account per landlord, dramatically increasing the workload for letting agencies), PayProp provides an integrated trust environment covering all agency clients and their clients – and it is fully bank-compliant. 

The platform offers complete client money peace of mind and makes agents’ lives that much easier with automated incoming and outgoing payments, freeing up their time and money to give them more out of work and more out of life.

Tracking and auditing transactions are also simple with PayProp. All incoming and outgoing payments are visible in real-time and statements are generated automatically, so letting agents can account for every penny of their clients’ money at any time in just a few clicks. Landlords can further see any money processed on their properties through PayProp via the free Owner app, while tenants can check and pay rental invoices online and access statements 24/7 via the Tenant portal.

With this level of enhanced oversight, it’s no surprise thousands of lettings agencies around the world rely on PayProp to help them manage their client money. Book a demo to experience the peace of mind that comes with PayProp.

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PayProp: Automated rental payments

We are recognised as a Propertymark Industry Supplier, setting the standard for speed and accuracy of payments, cost and payment status transparency and complete transactional control.