A large number of agents could go out of business as a direct result of Tenancy Deposit Protection, because they do not currently have client money protection and lack the experience and manpower to deal with the financial and management impact, writes Tony Booth.

Buy-to-let investors are advised to verify the situation and, if their agent's credentials and practices prove unsatisfactory, they should change to an alternative agent now...before it's too late.

Although there are no official or precise statistics available, respected experts believe about ten per cent of letting agents in the UK do not have a 'client money' protection facility shielding funds kept on behalf of landlords and tenants.

Such funds include existing tenant deposits, rent yet to be accounted for before being distributed back to landlords and reserve funds from the landlord held by agents in lieu of emergency repairs.

Client money