Letting agents who want to show they care about protecting client money can sign up to the new SafeAgent kite mark scheme.

Backed by a group of some of the UK’s largest letting agents, the SafeAgent scheme aims to clean up the letting industry by highlighting the risks of paying cash to firms that make no stand about protecting their customers.

The problem for landlords and tenants is letting agents are not regulated, and unless they belong to a voluntary industry scheme with a protect client money service, if the letting agent goes bust, the client loses any rents or deposits held by the agent.

Riddle of missing landlord cash

Only last week, detectives in Kingston upon Thames, South West London, launched a hunt for missing letting agent Jin Hardy who is suspected of transferring up to £50,000 cash from her business to an unknown private bank account.

The money was collected by her firm Jin’s Letting, in New Maldon, Surrey, as rents and deposits from tenants for payment to landlords. The firm is not part of any client money protection scheme, so customers have little chance of seeing their money.

Three landlords have complained to police that they have lost £16,000 between them.

SafeAgent chairman Nick Cooper, managing director of Northwood, said: “Agents with client money protection schemes want to root out unscrupulous operators who tarnish the reputation of the sector.

No protection if letting agent goes bust

“The group believes that the industry needs to find a more effective way to communicate to consumers the benefits of using agents who have client money protection.

“This is where the SafeAgent kite mark comes in. It will ensure consumers know exactly what to look for when they approach an agent. The aim is simple no kite mark, no client money protection if the agent goes bust.”

Letting agents can sign up to the SafeAgent scheme online at http://www.safeagents.co.uk/register

Registration costs £50 for the first office and £10 extra for each additional branch.

The web site also has a SafeAgent search facility for tenants and landlords.