Client Account / Escrow Administration
PRS assumes responsibility for firms such as Law Firms & Estate Agents, allowing you to service your clients' monies while eliminating coordination time.
Simplified Client Money Management
PRS assumes responsibility for firms such as Law Firms & Estate Agents. PRS allows you to service your clients' monies while eliminating the time your team spends coordinating these efforts.
This will put the focus on what is important and allow firms greater flexibility to manage their business. The Accounts Rules will also be simpler and easier to understand, supported by an online toolkit comprising guidance and case studies to aid compliance.
Key Principles for Keeping Client Money Safe
Our Services Include
Our Services for Estate Agents in UK
We offer a full range of services tailored to meet the needs of rental business owners. Our goal is to make your bookkeeping, tracking, and reporting simple and accurate. Tracking income per property or asset and assigning expenses correctly is critical — this is why many owners use rental business accounting software to manage their operations.
Client Account Procedures
Client Money
Agents must keep client money (rent, deposits or other money collected by an agent for a landlord) in a separate client account and be able to identify the money allocated to each client, applicant, tenant or ex-tenant. The money cannot be used for any other purpose and must be forwarded to the relevant party as soon as administratively possible when it is due to be returned. The client account cannot be used for the deduction of fees unless the agent has consent from the person concerned.
Rent Processing
An agent must process rent to the landlord once it has been received. It should be passed on as soon as administratively possible after the money has cleared and sent to the landlord in line with the agent's terms and conditions.
A landlord should receive rental statements detailing the amount received, deductions, retentions, VAT and the balance to be forwarded. It is a legal requirement to keep all invoices for six years for tax purposes.
Paying Contractors
An agent should only instruct contractors when the funds to pay for this are available, or will be received shortly. It is not sufficient to rely on the next rental payment to pay contractors.
However, there may be circumstances when an agent has to instruct a contractor in a genuine emergency when funds are not available. Agents can, without consent, retain money from the rent on a monthly basis to accrue funds for future agreed works.
Rent Arrears
If tenants are late with rental payments, an agent will write to them at set intervals to remind them the rent is due. Agents should ensure they are aware as soon as possible of any rent arrears and should keep the landlord informed. A tenant may be charged interest on late payments so it is essential that accurate records of payments, part payments and arrears are kept.
Deposits
Deposits must be held in line with the requirements of the Housing Act 2004 for ASTs (see Tenancy Deposit Schemes). Since April 2007 deposits must be held in an insurance scheme or a custodial scheme if there is an AST.
Overseas Landlords
The Finance Act 1995 places obligations on agents regarding overseas landlords' tax. Overseas landlords must register with the Personal Tax International (PTI) department and obtain an approval number. If an agent does not receive an approval number, they are obliged to deduct an amount equivalent to the basic rate of tax from the rental income and account to HMRC on a quarterly basis.
HMRC can withdraw an approval number if the landlord fails to submit their returns. If a tenant pays the rent directly to an overseas landlord without an approval number, the obligation to account to HMRC falls to the tenant. Overseas landlords must still submit tax returns and pay any income tax due, although they may be able to offset some expenses.
Why Choose PRS Smart?
At PRS, we specialize in providing comprehensive real estate accounting services tailored to your needs. Whether you require rental accounting, property accounting, or real estate accounting services, our team of experts is here to assist you. With over 20 years of experience, PRS Smart is your trusted partner in the UK real estate market, ensuring your financial records are handled with precision.
Our dedicated professionals are well-versed in property management accounting, offering you a clear financial overview of your real estate assets. We provide AP/AR, lease administration, and rental property accounting services that help you effectively manage rental income and expenses. Let PRS be your reliable partner, supporting your real estate business and guiding you towards making informed financial decisions for your property ventures.
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