Property factoring in Scotland is a process whereby property owners can transfer the management and maintenance of their property to a third party. This can be an attractive option for those who do not have the time or resources to manage the building themselves, particularly in tenements. In the majority of cases, the Deed of Conditions will make a provision for the owners to appoint a Manager or Factor, and each set of deeds will outline the process for doing so. Estates can assist and advise property owners on the process specific to their building and assist in gaining support or arranging meetings of owners to either make the change in factor, or to appoint your first Factor.
In the absence of a provision within the deed of conditions for the appointment of a factor, owners should refer to the Tenements (Scotland) Act 2004 for information. Estates can assist with interpretation and implementation of the relevant Acts.
There are many property factoring companies operating in Scotland, so it is important to do your research before choosing one. Make sure you get quotes from several different companies and compare their services. You should also check whether they are a member of any trade bodies such as the Property Managers Association Scotland and ensure they are registered as a Property Factor.
As of the 25th October 2016, Managing Estates are a registered Scottish Factor under Scottish Property Law.
Scottish property law and land ownership differs in comparison to England and Wales, we therefore tailor our management package and services to comply with these differences. For us to provide you with effective factoring services in Scotland, we conduct a full review of the apartment deeds before submitting our management proposal. This ensures successful and accurate management in compliance with the deeds. Please contact EstatesPM if your need a Property Factor Scotland service to help with your property management.
Rather than arranging repairs and maintenance yourselves, you may find it helpful to appoint a professional property manager to carry out this work and ensure continuity of maintenance across changes of ownership. Property management is the management of common or shared property by an agent responsible to the joint owners. The agent is known as a property manager, or by the traditional term of Property Factoring Scotland. While most property managers are private businesses, some councils and housing associations also provide property management services (usually for Right-to-Buy properties). A good property manager will provide technical expertise, organise the work, deal with billing, payment and administration and handle the tensions that can sometimes arise between owners.
If you decide to appoint a property manager the type of service you receive will depend on what is agreed between you and your property manager. Typically the range of services offered by property managers includes:
- Undertaking periodic inspections of the building to identify any maintenance or repair work required to common areas
- Arranging and managing contracts for day-to-day or routine maintenance, for example for stair cleaning and gardening. In some cases this will also involve managing maintenance contracts for lifts and boilers or directly employing and supervising on-site staff such as caretakers
- Arranging for repair work to be carried out including obtaining quotations, hiring contractors and supervising their work. This might involve coordinating the services of several building trades
- Managing the joint owners’ bank account and collecting payments as required
- Arranging buildings insurance
If you live in housing which includes commonly owned areas (such as roofs, staircases, entrances and gardens), you and your co-owners will share joint responsibility for the repair and maintenance of these areas. To ensure that these common parts are properly maintained, you will need to decide collectively how routine and one-off maintenance and repairs should be carried out.
This requires joint, co-ordinated action on the part of owners and there are a variety of arrangements available for organising and managing common repairs and maintenance. These range from individual owners taking on the task (‘self-managing’) through to appointing a professional property manager. In some cases the title deeds will require owners to use a property manager and this is now the usual arrangement for modern flatted developments in Scotland. In other cases, especially in traditional tenements, the title deeds do not include a requirement to appoint a property manager and owners are free to agree their own arrangements.