What do property factors do? Factors play a central role in the day-to-day management of common elements in both shared residential and commercial properties.
Regulated by the Scottish government, the position involves organising essential maintenance and managing communal finances, ensuring common property is safe, compliant and well-maintained on behalf of the co-proprietors.
If you’re new to the concept, the Taylor & Martin guide to property factoring in Scotland provides a good introduction. Read more about property factor responsibilities below.
What Is a Property Factor?
A property factor is typically a private business, local authority or housing organisation appointed to manage the shared responsibilities of a residential building or land. Title deeds define the role, as well as:
- Tenement Management Scheme
- Scottish legislation, including the Property Factors (Scotland) Act 2011.
All property factors must be registered and follow a statutory code of conduct that sets standards for transparency, communication, and accountability. For example, you can view how this applies in practice by reviewing Taylor & Martin’s property factor registration.
Many homeowners choose to work with experienced providers offering property factoring services in Scotland to ensure these standards are consistently met.
Communal Areas Covered
A property factor is responsible for maintaining and managing the shared spaces within a development. These communal areas typically include:
- Stairwells
- Hallways and internal communal spaces
- Courtyards and atriums
- Communal gardens and landscaped grounds
- Roofs and external building fabric
- Gutters, downpipes and drainage systems
Depending on the development, responsibilities may also extend to lighting, door entry systems and general upkeep.
Main Property Factor Responsibilities
At a fundamental level, the core role of a property factor is to organise, manage and communicate.
They do not own the building, and they do not make decisions unilaterally. Most decisions are made in line with legal rules, shared agreements, or homeowner approval. Below, you may find a list of the different responsibilities of property factors.
Coordinating Maintenance & Repairs
- Arrange common repairs to shared parts of the building
- Manage upkeep of common parts such as stairwells, roofs and external areas
- Help maintain the overall condition and safety of the property
- Coordinate planned property maintenance as well as emergency repairs
- Create long-term and seasonal maintenance plans
Communication with Owners
- Act as a central point of contact for all owners
- Facilitate homeowners meetings to inform and to allow decisions to be made
- Provide updates on works, issues and decisions
- Help resolve queries or concerns
- Updated client portal to ensure transparency
Managing Shared Costs
- Financial administration, including managing sinking funds and building insurance
- Apportioning of costs in line with the Title deeds
- Issue invoices to recover funds for services completed, including the regular management fee
- Oversee budgeting for ongoing maintenance
- In some cases, support structured approaches like a voluntary common repairs scheme
Providing a Clear Service Framework
- Supply a written statement of services provided
- Clearly outline what is included, how fees are structured, and how the process works
- Follow a recognised code to ensure transparency
Ensuring Compliance & Standards
- Operate in line with the property factor code and legal requirements
- Support adherence to safety and maintenance obligations
- Provide a route for raising a formal complaint if needed
Who Needs a Property Factor?
Property factors are typically appointed in:
- Traditional tenements
- Retirement and sheltered housing
- Listed buildings
- High-end properties
- New build developments
- Converted properties
Anywhere that responsibility for shared spaces is divided among multiple owners, a factor helps coordinate the practical and administrative workload. Depending on the type of property, this may involve working with tenement property factoring specialists or tailored new build factoring services.
In some cases, such as property purchased through a housing association, an appointed factor may already be in place when you take ownership. This means you will be required to use that factor’s services and will be bound by the existing factoring agreement, even if you did not choose them yourself.
Role of a Property Factor in Decision Making
Property factors don’t usually make major decisions on their own.
Instead, actions are guided by:
- Title conditions set out in the title deeds
- The tenement management scheme
- Agreement between all the owners, where required
This ensures that responsibility is shared fairly and decisions reflect the interests of the building as a whole. Long-term planning may also involve structured approaches such as tenement maintenance plans.
FAQs About Property Factor Duties & Processes
Our registered factoring team answers some of the most common property factoring questions below.
Is it worth having a property factor?
In many cases, yes, particularly in buildings with shared responsibilities. While it’s not always a legal requirement, a property factor can simplify maintenance, communication, dispute mediation and decision-making among multiple owners.
It is often a requirement of the Deed of Conditions for a factor to be appointed to act on behalf of the homeowners
A company like Taylor & Martin can potentially save you time and money. Find out more in our blog post: Is it worth having a property factor?
Can you change factors?
Yes, homeowners can change or begin dismissing property factors if they are unhappy with the service. The exact process depends on the building’s legal arrangements. It usually requires agreement between the owners and following the procedures set out in the title deeds or management scheme.
If you’re considering this step, our guide to changing your factor outlines the process. Here’s what to look for in a new property factor company.
What do I do if there’s an issue in my building?
If something goes wrong in your building or land, there is a clear process to follow:
- Raise the issue directly with the factor
- Submit a formal complaint if it isn’t resolved
- Escalate to the First-tier Tribunal for Scotland (Housing and Property Chamber) if necessary
This framework helps ensure accountability and protects homeowners.
What is the difference between a property factor and a property manager letting?
It’s common to confuse these roles, and while they are related, they are different:
- Property management is a broad term covering services such as estate management and letting agencies.
- Factoring is a specialist subset of property management, unique to Scotland. This role focuses specifically on the upkeep of shared or communal areas for homeowners.
Read our blog on the differences for a deeper understanding of these professions.
What happens if there is no property factor?
While there isn’t a legal requirement for all properties to appoint a property factor, title deeds often require owners to contribute to common-area maintenance. The Tenements (Scotland) Act 2004 provides a default maintenance framework where deeds are silent.
Without a factor, responsibility falls on homeowners. Some common problems that may arise include:
- Owners must coordinate maintenance themselves.
- Without routine inspections, issues can go undetected, leading to more costly urgent repairs later.
- Increased disputes without a neutral third party to mediate.
- Delayed or poorly coordinated maintenance can be more expensive over time.
- Buyers and their solicitors can scrutinise common repair histories during conveyancing, and the absence of professional factoring can put off purchasers.
A professional factor ensures that building finances are properly managed and repairs are handled efficiently and equitably.
Now that you’re no longer wondering ‘What do property factors do?’, read up on how they manage repairs and maintenance. Contact us for more information.