When it comes to selecting the right factor for your property, price can be a huge deciding point. Unfortunately for homeowners, there is much more to consider, and the factoring world can be overwhelming.


In a previous blog, we’ve taken you through what it means to be a property factor, what property factors do, and what you can expect from yours. However, when it comes to fees, factoring can be a tricky world to navigate. Taylor & Martin aims to help homeowners in this situation by making all things factoring simple to understand and totally transparent.


We aim to answer as many of your questions as possible and hope you’ll find this article useful. If you are looking to stay up to date and learn more about what to expect from your property factor, be sure to follow us on Facebook and LinkedIn.


What does a factoring fee cover?


A factoring fee is a total fee you pay your property factor, or property manager, to upkeep your estate, building or home. This covers things such as a share of common buildings insurance and a building maintenance fund.


It is the property manager’s responsibility to make sure bills are simple and transparent, and you should be able to request a breakdown of what you are paying and why. If there are any unexpected changes, you should be notified of these in advance. At Taylor & Martin, this is something we endeavour to achieve for all of our homeowners.


What is the average factor fee in Scotland?


There can be a wide range of fees associated with living in a factored property. For example, if you live in a block or building with multiple floors and common areas, it’s likely that you will be paying for a share of any communal cleaning and ongoing maintenance through your factoring fees.


Another example of the variation of factoring fees is whether you live in a single-family home on a housing development where there may be the upkeep of parks, grass cutting and public liability insurance to consider for any shared spaces. Factoring fees can range from around £50 per quarter to closer to £200 or £300, depending on the location of your home and the scope of maintenance work that needs to be carried out from year to year. Management fees, which are separate to any work that needs carried out, are typically anywhere between £15 – £120 per quarter.


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

Additionally, homeowners are asked to pay into a ‘float’ which is used for small-scale repairs and maintenance; such as cleaning communal areas or replacing public light bulbs. Some factors will also use a ‘building maintenance fund’ so that they have enough money saved over time to prepare for large-scale repairs.


Taylor & Martin’s approach to factoring fees


We endeavour to make our factoring fees as transparent as possible while reviewing the market to ensure our homeowners are getting great value for money. That’s why we take no commission on repairs or insurance, meaning the true cost is what our homeowners pay.


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


No two properties are the same, so at Taylor & Martin, it’s important to us that we offer flexible billing arrangements. To keep things simple, we never charge commission on repairs undertaken on behalf of our clients.


Choosing the best property manager for you


It’s vital to have a property manager you can depend upon and we take that responsibility seriously. Homeowners have legal protection when using a property factor, so understanding how services and fees work is important. This makes sure that you’re getting the most out of your factor.


If you would like to find out more about our factoring services, why not get in touch today?