Factors

What is a property factor?

A property factor, also known as a property manger, is a person or company who has been contracted to maintain a common area of land or property that is owned by more than one person. Registered social landlords and Local authorities can also act as factors.

Factors are most commonly found in tenements and flats or other situations that have common areas used by all residents.

When buying a home you may want to check what arrangements are in place for the upkeep of common areas. You should also check the title deeds for information on your responsibilities for any common areas.

What do property factors do?

Factors typically carry out activities such as

  • Organise repairs
  • Cleaning of communal airways such as stairwells
  • Maintaining equipment such as lifts
  • Lawn and garden maintenance  
  • Collecting service charges from residents to pay for their work.

What should I check about factoring arrangements before buying a property?

Information about property management is often included as part of the property questionnaire in the Home report. Some questions you could consider asking the seller about property management arrangements include;

  • Are there are any common areas in the property?
  • What do the deeds say about your responsibility for common areas?
  • Is a factor in place to maintain the common areas?
  • Who has been appointed as the factor?
  • What is the property manager the contracted to do?
  • Can I see the Written Statement of Services ?
  • Factors have to provide a written statement of services. Ask for a copy of this to see what it contains
  • How much do you have to pay the factor?
  • Is there any outstanding work that the factor still has to carry out?

If the deeds say there are common areas but there is no property manager in place this may be a red flag.

  • No factor may mean common areas are not maintained.
  • No factor may mean residents were unable to co-operate with each other to appoint one for their common benefit. Not a good sign
  • No factor could also mean residents had a factor but didn’t pay so the factor withdrew services.

How are property factors regulated?

In Scotland. Property factors have to abide by the Property factors (Scotland) Act of 2011. Property factors in Scotland have to

It is a criminal offence to operate as a property factor whilst unregistered.

Where can I find out more about property factors?

The Property Managers Association Scotland is the trade association for factors in Scotland.  You can find out more about property factors on their website.

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