What is Factoring?
At PMC Property Management and Lettings, we offer a range of factoring and property management services for our clients. But what exactly is factoring? And why is it something you should consider for your property or development? We break it down for you in this handy blog post.
Factoring and Property Management
In Scotland, factoring is the management and maintenance of shared land and communal areas owned by more than one property. Whether private, council or housing association, a Factor is employed to act on owners’ behalf to manage the common property. It is the owners’ responsibility to make sure the common parts of their building are kept up to standard, and the Factor is there to help owners do this effectively. Following the introduction of the Property Factors (Scotland) Act 2011, and the associated code of conduct, property factors are well managed and thoroughly regulated, ensuring they operate in a professional manner.
Why do I need a property factor in Scotland?
If you have a property within a development with any shared land or areas, you don’t necessarily need to have a Factor in place, unless this is stipulated within your own legal Deed of Conditions for the development. However, it is hard work and can be difficult to get contractors to work for you as they may be concerned that they will have to chase every owner to get their bill paid separately.
Having an outside party to manage any shared areas, keep on top of contractors, oversee works carried out, and fairly split payments between other residents can help stop any disputes with neighbours and save you time, money and stress. It can also prevent one owner having to take responsibility for collecting necessary funds from the other owners, and provides a stress free way to recoup any debts, should some of the owners chose not to pay their share of the funds.
If you don’t have good property management, it is very likely that your building will fall into disrepair and not keep its value. There’s no doubt that common property management and building repair has become more complex and all owners will, at some point, require professional help. This is particularly the case where there are large numbers of absentee owners, and in larger modern developments where there are lifts, security systems, and mechanical ventilation and pumping systems.
Property Factors have developed professional expertise in both management and technical areas. They provide a “one stop shop” that can take away many of the property management headaches that affect common properties. Factors can also put in place a common block buildings insurance policy, on behalf of the owners, if they are FCA regulated, as PMC are.
What do factoring fees cover?
At PMC, we understand that every property, situation, and budget is different. We offer a bespoke property management service that can be easily tweaked and changed to suit each development, whether residential houses or commercial buildings. PMC issue each of our customers with an annual budget newsletter, which outlines all expected costs, and clearly defines what these costs include.
In general, factoring fees will include the maintenance and cleaning of communal areas, such as hallways & stairwells, care and maintenance of the grounds, carparks, and gardens, along with arranging the correct insurances for the properties and development as a whole. The fees for factoring are split and managed according to the Deed of Conditions, which is the legal document that governs the development, and outlines the apportionment of common ownership. Generally, this is an equal split between the development, or block, depending on the service provided and the properties included. However, some Deeds may apportion costs according to the square footage of the properties, or depending on how many bedrooms the properties have.
How to find the right factor for your property or development
At PMC Property Management and Lettings, we cater to around 9,500 properties across Scotland and have offices in Aberdeen, Aberdeenshire, Glasgow, and Inverness, so wherever you are, location is not an issue. We work with the highest standard of contractors who are all independent, trustworthy and local to your development, and the PMC team takes the time to pop out to make regular checks and ensure everything is in order too.
Finding the right Factor to suit your property can be difficult. At PMC, we find that good communication is the key to great relationships with our clients, and feedback has proved that this is vital for our clients too. We send regular updates to all of our clients and we ensure we are easy to contact to get any issues solved quickly and effectively. Our property managers are forward-thinking and will see the potential work that can be done to improve developments, and suggest new and innovative ideas to take care of problems, rather than waiting for our clients to suggest change.
At PMC Property Management and Lettings, we offer a range of bespoke services to best suit you. You can find out more about our Property Management services here or get in touch to have a chat with our team, whether you are switching from your current factor or starting fresh.
Do you have any other questions about factoring for your property? Get in touch to let us know.
