Property Factors – what you need to know
Property Factors – What you need to know
Owning a property can be daunting, taking out your first mortgage can seem overwhelming let alone dealing with your property’s internal maintenance. So, why would you want to have the hassle of dealing with the communal external areas that’s where a Property Factor can help. What do they do and how do you know they are transparent proactive and will get things done?
We believe that factoring should be simple and fully transparent for you, so in this article we’ll tell you everything you need to know about property factoring in Scotland.
What is a property factor?
Put simply, a property factors role is to manage and maintain all common areas of land and property owned by more than one homeowner. This includes stairwells, hallways, and lifts as well as the actual grounds and gardens of a property.
A factor can operate as a private business or a registered social landlord. In some cases, like local authority housing, the council acts as the factor for the properties it owns.
While it’s not absolutely necessary to have a property factor to look after communal property – it does make things a lot easier.
When it comes to regular maintenance, cleaning, and upkeep – having someone coordinate the work and keep all homeowners up to date can save a lot of hassle and avoid potential disagreements.
What does a factoring company do?
Factors take care of communal areas of property and land. This can look like supervising any day-to-day maintenance, organising owners’ meetings to keep homeowners up to date about the running of the building.
They also handle regular maintenance and repair work, organising contractors to carry out work and deal with any complaints that owners may have.
This also extends to managing disputes that can arise between owners and handling the necessary insurances for the building. At Factors Direct, we organise this through an insurance broker to ensure you get the best deal.
Why are Factors Direct any different?
We believe that exceptional service should be the norm, not the exception and we’re here to make that belief a reality. Transparent and timely communication forms the cornerstone of our customer service philosophy. Whether it’s to share the good news of a successful inspection or to advise on necessary maintenance to uphold your property’s value, we’ll keep you informed every step of the way. We facilitate a range of property management services, from day-to-day maintenance to varying levels of repairs. We ensure communal areas of properties are maintained to a high standard. Our knowledgeable team is always on hand to provide you with as much support as possible from advising you of whether an inspection has gone well to dispute resolution with neighbours.
Scottish property factors register.
All factors in Scotland must be registered and be on the Scottish Property Factors Register. In fact, it’s a criminal offence to operate as a factor if you’re unregistered.
Secondly, each factor must follow the Code of Conduct which sets a minimum standard of the service it gives to homeowners.
Looking into a property management company? Here’s what to look out for on the register:
- who the factor may be for a certain property address or area of land.
- the contact details of the relevant factor
- the current number of properties managed by the factor.
The register and all relevant information must be always kept up to date which is the responsibility of the factor.
Your home is your most precious asset, which is why it’s important to make the right checks to ensure you’re in safe hands.
Do property management companies pay for repairs?
Factoring companies don’t pay for repairs but instead search for the best contractor to complete the jobs which need done.
Our role is to ensure that our clients are happy and the properties we maintain are kept to the highest standards. And that means regular maintenance.
Communal areas can quickly cause issues for homeowners like you, which is why having a factor you can trust saves you time and energy. When it comes to repairs and maintenance, we use our trusted list of contractors to ensure your property stays in top condition.
How do factors fees work?
In most cases, individual properties in a building or development will be charged a property management fee, usually on a quarterly basis.
Additionally, homeowners are asked to pay into a ‘float’ which is used for small-scale repairs and maintenance, such as cleaning communal areas or replacing public light bulbs. Some factors will also use a ‘building maintenance fund’ so that they have enough money saved over time to prepare for large-scale repairs.
Factors Direct holds a floating fund (float) for all homeowners. We use the float to pay contractors for general maintenance and repairs, replenishing the fund when invoices are settled. The value is based on the Deed of Conditions, or an agreed figure based on maintenance and upkeep costs of the property. The floating fund will be reimbursed upon the sale of your property.
Obviously no two properties are ever the same, so it’s important to us that we offer flexible billing arrangements. To keep things simple, we never charge commission on repairs undertaken on behalf of our clients.
How much are factoring fees?
Property Factors historically have a bad reputation however at Factors Direct we are changing that perception, we want to be proactive in our approach to repairs and maintenance with regular inspections we look out for potential repairs and catch them early so they don’t become a costlier job in the long run, maintaining your asset.
We make sure your building is very well maintained. You can be assured knowing that every aspect of property management is being attended to, from day-to-day maintenance and running repairs to emergencies and major works.
As a result, we believe in simple, upfront pricing. Visit our website for more information https://factorsdirect.verticaldev.org/about-us
Want to find out more about factoring?
If you’ve got any more questions, just get in touch today 0141 739 4439
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