Client Money Handling Procedures

These procedures set out how Nestforge Ltd handles client money as a small full-management agent in England. They are intended to comply with the Client Money Protection Schemes for Property Agents Regulations 2019 and the Tenant Fees Act.

Client money includes rent, holding deposits, maintenance floats and other funds held for clients. Tenancy deposits protected in an authorised scheme are not held by Nestforge Ltd; they are handled under that scheme’s rules, as set out in section 5.

Client money is held with an FCA-authorised UK bank or building society, in an account whose name includes “client”:

[Client account name – to be supplied], [Bank – to be supplied].

The client account is kept separate from company money. Company money is never mixed in except to correct an error, and any such correction is made promptly. The client account is not overdrawn.

Rent, holding deposits (capped at a maximum of one week’s rent) and other payments are paid straight into the client account. Each receipt is identified and receipted, and is recorded on a per-landlord and per-tenant ledger the same day or the next working day.

Landlords are paid the net amount after the agreed 8% full management fee and approved, invoiced expenses, within [X working days – to be confirmed] of cleared funds, together with a monthly statement.

Payments are made only with authorisation and supporting records. Money is repaid without delay when it is no longer required. The company’s fee is moved to the office account only once it has been earned and invoiced.

Tenancy deposits are capped at five weeks’ rent where the annual rent is under £50,000. They are not held by Nestforge Ltd. They are paid to the government-backed custodial Deposit Protection Service (DPS) within 30 days of receipt. DPS holds the money for the whole tenancy, free of charge.

Tenants receive the DPS deposit ID and the prescribed information within 30 days, and can check their protection on the DPS website.

At the end of the tenancy, the landlord or Nestforge Ltd and the tenant agree the repayment, and DPS pays it out directly within 10 days of the agreed repayment request. If there is a disagreement, DPS offers free, impartial dispute resolution (ADR), and the disputed amount stays safely with DPS until it is resolved. If a tenant cannot reach the landlord or agent, they can apply to DPS directly.

For landlords: because DPS holds the deposit throughout the tenancy, this removes deposit risk from your side — the money is not held in Nestforge Ltd’s client account and does not depend on the company remaining the stakeholder.

A client ledger is kept for every client. A three-way reconciliation — bank statement against cash book against client ledgers — is carried out at least monthly. Any differences are investigated and corrected promptly. The reconciliation is signed off and kept for at least six years. A periodic independent check is recommended.

Nestforge Ltd is a member of Client Money Protect. Membership number: [membership number – to be supplied]. The certificate is available on this website and on request. Clients are told in writing within 14 days of any change or revocation of membership.

If the company becomes insolvent, money in the client account belongs to clients, is held on trust and is not available to the company’s creditors. Clients can claim from the CMP scheme for any shortfall, subject to its terms and limits.

Tenancy deposits held by the Deposit Protection Service (DPS) are unaffected by any insolvency of Nestforge Ltd. Those funds remain safely with DPS.

Please contact Nestforge Ltd first, by telephone using the Call us button or by email at [email protected]. We aim to acknowledge concerns within [3] working days and to give a final response within 8 weeks.

You may then escalate a complaint to the Property Redress Scheme (membership number: [membership number – to be supplied]), or to the CMP scheme for a client money claim.

These procedures are reviewed annually. Last reviewed: [date].