Your bank account is a client account: money managed by your bank. Your ISA & pensions accounts are client accounts too: capital and income accounts managed by your stockbroker. The money held by your lawyer when you buy a house is a client account.
It’s a client account! Nothing more, nothing less. Simple stupid. Stupid simple!
Held on trust: real, accountable, reliable, caring trust.
For each of the above, you can access a statement any time, mostly online, real time. OK, for a lawyer, you might have to request it, but he/she’ll send it to you pretty quick.
So why not the same for your properties, from your lettings and property manager? What’s so different? As a landlord, the money your agent holds and processes for you is 110% a client account too. No ifs, no buts. So why not?
And have you thought about the landlord “statements” you get? Typically, you’ll receive one a month. When you received your first one, did it seem a bit odd? With things reserved, in and out, and no balance carried forward. Just ending with what you get paid. Ever struck you as strange?
The answer is that most agents these days are still sending out “what-happened-since-last-month” schedules; and calling them “statements”. Their systems are more focused on the property than your money. Their accounting systems are most often run separately in parallel, often remotely, and tie up only on a global basis for all their properties.
We’re not saying that cannot work. It does … enough … usually … just about … you hope … and certainly if an agent keeps a buffer fund (as many do) they can get away with reconciling only periodically (you would hope at least each year).
But is this really what we’d expect in the 21st Century?Are we really comfortable with that? Banks, fund managers and lawyers wouldn’t be allowed to do it. So why property agents, often controlling your most valuable asset? Is it really the best they can do?
Still wondering? Just ask yourself: I get a tax certificate from my bank, stockbroker or fund manager. So why not from my property agent? (And how mucham I paying them?)
Herddle is bringing lettings and property management out of the 80s, with investment and good thinking, long overdue. Automating the long-established natural process, with lots of efficiency benefits and better features. With us, you can look at a proper “bank statement” any time, any period, any place, at your fingertips. Oh, and that includes a tax certificate.
Our systems fixate not just about your property, but your money too. We hold it for you on trust. It’s your money, client money. Totally integrated penny by penny, all the time, as part of our management system. Like a bank account, transparent for you to see 24/7, wherever you are, on desktop, laptop, phone or tablet.
If you’re a landlord and want to join the future, please get in touch. Whether one property or a portfolio, private or institutional, we’d love to hear from you.