A Guide to Factoring Fees in Scotland

Dec 16, 2021 | News

Have you ever asked where the numbers on your property management bill actually come from? Do you often wonder where your management fee goes?

Factoring can be confusing, especially if you own multiple properties. At Taylor & Martin, we believe it’s essential to keep it simple. We’re transparent about our fees, and we’re here to help our clients fully understand how the billing process works.

Here’s a comprehensive guide to factoring fees in Scotland.

What Are  Factoring Fees?

If you’ve ever found yourself wondering, ‘What is a factoring fee?’, let us explain. Factor fees are charges paid to a property factor for managing and maintaining the shared areas of their building or development. In most cases, factors’ fees are also made up of your home’s share of insurance and contribution to the building maintenance fund.

It is one of the property manager’s duties to make sure that bills are simple and transparent, and you should be able to request a breakdown of what you are paying for and why. If there are any unexpected changes, you should be notified of these in advance.

What Do Factor Fees Cover?

Put simply, at Taylor & Martin, our fees cover our 24/7 factoring service, which can include:

  • Cleaning: Internal, external, windows, gutters, downpipes, and drainage
  • Maintenance work: Lift, roofs, fire alarm, sprinkler, external walls, door entry, gate, garage door, playparks, and communal utilities in the block
  • General upkeep and repairs: Landscaping, grass cutting/upkeep of gardens, inspections, and routine repairs

Taylor & Martin’s factoring fees are regularly reviewed to ensure we’re providing high-quality service to our clients, on a tailored and individualised basis.

How Do You Calculate Factor Fees?

While every case is different, the average factoring fees in Scotland are usually determined by:

  • Cost apportionment: The Deed of Conditions typically determines how costs are split between owners.
  • Property size or share: Owners of larger flats or homes may incur higher costs.
  • Communal living areas: Generally, the more shared amenities a development has, the higher the costs.
  • Types of services: Some common areas require basic upkeep, like cleaning and managing the gardens, while others may require more extensive maintenance (e.g. swimming pool restoration).
  • Contributions: In many developments, a portion of the factor fee is allocated to a reserve or floating fund, ensuring money is available for major future expenses.

How Does Billing for Management Fees Work?

In most cases, individual properties in a building or development will be charged a management fee, usually on a quarterly basis.

Additionally, homeowners are asked to pay into a ‘float’ which covers charges for small-scale repairs and maintenance, such as cleaning communal areas, managing gardens, or replacing public light bulbs. Some individuals will also utilise a ‘maintenance account’ to save enough money over time to prepare for large-scale expenses.

Taylor & Martin operates on a floating fund (float) for all homeowners. We use the float to pay contractors for general maintenance, replenishing the account when invoices are settled. The value is decided by the Deed of Conditions, or an agreed figure based on the upkeep costs. The float will be reimbursed upon the sale of your property.

Do Factoring Charges Cover Emergencies?

If the worst should happen, your property manager should be on your side to ensure repairs are carried out swiftly and effectively.     

As part of your factoring fee, you might be asked to make regular payments to a ‘building maintenance fund’. This exists as a safety net to ensure that expenses can always be covered, taking the pressure off homeowners to pay large sums if something unexpected should happen.

A factor’s role is sourcing the best tradesmen for the job. We source quotes from multiple companies before carrying out any work. With each repair, a cost-benefit analysis is required, which can be made available to homeowners upon request. You should be notified about any additional costs so that there aren’t any surprises on your bill.

With a trusted roster of contractors on call 24/7 and support with building insurance claims, we’ve got your back. Find out more about how we can support you in an emergency.

Why Are Property Factors Important in Scotland?

Property factoring plays a crucial role in maintaining the quality, safety, compliance, and value of shared areas within properties throughout Scotland. Taylor & Martin don’t just fulfil the basic role of a property factor; we aim to exceed expectations through our approach:

  • Tailored management: We treat each property as unique, recognising a variety of different needs.
  • Personal service: Our property managers personally oversee all their portfolios, enabling quicker response times, professional conduct, and a high attention to detail.
  • Transparent costs: There’s no commission on building insurance or contracted services, and owners receive clear, transparent invoices explaining the charges.
  • Reliable network: Taylor & Martin works with trusted contractors, inspecting their work and gathering homeowner feedback to ensure quality and consistency.
  • Streamlined communications: Our online portal offers a convenient communication channel for owners to relay their needs and concerns.
  • Ongoing support: We assist with new builds and development projects from the early planning stages, advising on Deeds of Conditions, providing assistance at handover, and setting up communal facilities and insurance.

Taylor & Martin: Industry Leading Property Managers in Glasgow

We know the importance of having a property manager you can depend on, and we take that responsibility seriously. Homeowners have legal protection when using a property factor, so understanding how services and charges work is important. This ensures that you’re getting the most out of your factor.

That’s why at Taylor & Martin, we aim to deliver our services at the highest standard, while also providing full transparency on our invoices. We focus on giving you peace of mind, so that you never need to second-guess the expenses involved in maintaining your property.

To learn more about our factoring services, please don’t hesitate to get in touch today. You can contact us via email at info@taylorandmartin.co.uk, or if you’d prefer, call one of our offices:

Our dedicated property managers look forward to providing you with unmatched service.