An alternative to a client account for letting agents
Many startup and established letting agents are getting frustrated with the difficulty in opening and managing a client account. Currently, many letting agents are struggling to open new client accounts, with some even being served notice that their accounts are to be closed. This problem is a consequence of the Anti-Money Laundering (AML) legislation reported on in 2019, and subsequently tightened in January 2020, (HM Treasury, 2020).
However, Proptech platform LettsPay, has the solution to this headache which complies with AML legislation, whilst providing letting agents and their clients with the secure accounts they need.
LettPay is a digital client accounting platform which removes the need for letting agents to have specific client accounts with a bank. They offer a range of services in one place to reduce costs, and save time by automatically managing accounts.
LettsPay covers all of the agent’s accounting needs from sending out payment reminders, to managing and splitting funds. Every penny is traced, which allows accounts to be reconciled with ease and ensure that the correct payments are made on time. Linked to each agent account, landlords have their own dedicated account with their unique sort code and account number. Statements are automatically sent to landlords and suppliers as soon as they are paid, cutting out a tedious process traditionally taking up manpower. Rent can be collected via direct debit or standing order, with an automatic reconciliation once a payment has been made. In addition, the needs of overseas landlords are just as easy to manage, with a price well below that for the same service carried out by a bank.
LettsPay has been consciously designed to be simple, easy to use and effective. It was designed with the support and guidance of successful letting agents who were finding that they were taking up to a 3 days every month just managing payments. As a result of this time consuming process, other areas of their business, such as growing their client base, were suffering. This revolutionary accounting system frees up the agent’s time by chasing payments, automatically sorting funds and providing a detailed account analysis.
“Client accounting has always been a headache for letting agents, but now with all the regulations and CMP requirements mixed with the banks becoming more difficult to manage, now is the right time for agents to look at alternatives in the market and LettsPay is a fantastic solution to take the pain away”. Garrett Foxon Director LettsPay
References HM Treasury (2020) [www.gov.uk/government/consultations/transposition-of-the-fifth-money-laundering-directive]