As many are aware, not only do we run the Guild of Residential Landlords but we are also a landlord too. Further, we manage my parents properties and another 2 properties are managed on behalf of other clients. This means that our property management business even though it doesn’t really earn much still needs to be registered with a redress scheme.
We have today gone with The Property Redress Scheme because I rather like their pricing structure. They charge £95.00 plus VAT per annum and then you pay as you go for complaints. The complaint fees are £60.00 for an agent who has client money protection or £90.00 without (both plus VAT).
The alternative price to join the scheme is £199 plus VAT and this includes a “fair usage” of complaints. Both pricing structures are per office / branch.
I found the application process to be very straightforward and was entirely completed online.
One thing that this scheme requires (and possibly the other schemes too) is professional indemnity insurance and I’ve had a lot of calls asking where to get the insurance so I thought it worth sharing what we did. Update 7/10/14: we are now able to offer professional indemnity insurance, see box below.
Basically, it started with a search and I tried two options but the first one despite going through the full process and being the cheapest said on checkout that they would contact me to arrange cover. I therefore ditched it and got a policy with HCC International through ProfessionalIndemnity.co.uk. It was fairly quick and straightforward and crucially the whole thing was completed online without the need to communicate directly with anyone. The cost came out at £85.86 for the year and this covers up to £50,000 and is more than adequate for my very basic needs. Obviously larger agents would likely need higher cover but none of the schemes that I can see specify any minimum amount.
So, we are all ready for 1 October 2014 by which time all letting and managing agents must be a member of one of the three redress schemes.
As an update, we have now spoken with our insurers who look after the buildings insurance for landlords and they are able to quote for professional indemnity insurance for letting agents. See at the bottom of our insurance page for contact details.