Self factoring versus using a property factor – the key differences
Scotland has many buildings and developments that do not use a property factor to manage their communal areas, opting instead to manage matters themselves. Many have done so successfully for years and, for those developments, the appeal of appointing a professional property factor may be limited.
The flip side is that, in some developments, the cracks in self-factoring may be starting to appear — perhaps due to a lack of owner engagement, debt recovery issues, or simply a lack of knowledge about how to tackle more complex repair and maintenance matters.
Whether it’s organising stair cleaning, arranging roof repairs, or managing communal gardens, there is always the question: should we handle this ourselves, or appoint a property factor?
Let’s break it down in a straightforward way so you can decide what works best for you.
What is Self-Factoring?
Self-factoring means that homeowners collectively take responsibility for managing the building and any shared areas. Rather than appointing a professional factor, owners organise matters directly between themselves.
In practice, this could include:
- Organising repairs when something breaks
- Arranging regular contracts such as gardening and cleaning
- Obtaining quotes from contractors
- Collecting money from each flat owner
- Managing budgets for ongoing maintenance
- Making decisions as a group
One of the biggest appeals of self-factoring is cost or, at least, the perception that doing it yourself will save money. Whilst self-factoring avoids management fees, property factors can often secure better value through established contractor relationships and economies of scale.
Another attraction is having greater control over how the development is managed, with owners retaining full accountability and decision-making power.
Of course, it’s not always straightforward. Self-factoring requires time, effort, and organisation, which very often falls to a small group of owners — or sometimes even one individual owner. Organising repairs and maintaining financial transparency for fellow homeowners can feel like a full-time job, usually carried out through goodwill and community spirit alone.
For self-factoring, size really does matter. In larger developments, the workload for committee members or volunteer representatives can quickly become significant and absorb a considerable amount of free time.
Whilst many homeowners will get on well together, disagreements can and do arise. Not everyone agrees on everything. One neighbour might want to proceed immediately with roof repairs, while another may wish to delay due to cost concerns. These disagreements can stall decision-making and create tension within a development.
Having a property factor as a neutral third party can help as a managing agent has no personal involvement in disputes and can often approach matters more objectively and dispassionately.
There are also financial risks to consider. What happens if someone does not pay their share?
With self-factoring, responsibility for chasing arrears and, where necessary, pursuing legal action often falls on the owners themselves. This can be uncomfortable within a close-knit community and may create ill feeling between neighbours. Debt recovery forms part of a property factor’s role, and professional factors will usually have established procedures and experience in dealing with arrears appropriately and consistently.
Whilst some homeowners may begrudge paying for a professional property factor, others may view it as money well spent. A property factor brings experience in dealing with communal repairs and management issues across a wide range of developments and can provide expertise, structure, and reassurance, whilst removing much of the administrative burden from owners.
Choosing between self-factoring and using a property factor is not just about money — it is also about time, relationships, and peace of mind.
Self-factoring gives owners control and may reduce costs, but it also requires cooperation, commitment, and ongoing effort. A property factor offers convenience, experience, and professional support.
If you are unsure which route is best, start by having an open conversation with your neighbours. Understand everyone’s priorities — whether that is cost, time, convenience, or involvement — and take it from there.
At the end of the day, the right choice is the one that keeps your property well maintained and your stress levels low.