Do I Need To Pay Factor’s Fees?
If you live in Scotland and are wondering whether or not you need to pay a Property Factor or manager’s fee, you will find the answer to your question in the article below as we explore where the responsibility of paying a Factor’s fees lies, the average fees they charge and the services to expect from them in return.
Do I Need To Pay Factor’s Fees?
You would need to pay Property Factor’s fees under the following circumstances:
- you are a homeowner in Scotland
- your title deed says that you need to hire a Property Factor
- your home has communal areas that need to be maintained
The fees for a property factor are typically paid by the owners of the properties that are being managed by the factor. This can include individual homeowners, landlords who own rental properties, and property management companies that own and manage properties on behalf of their clients.
The fee for Property Factors covers two aspects; one being charges for the work that they two and the second being their management fee.
This means that if you need a manager to maintain and repair communicable areas in a residential area such as hallways, gardens, stairs or lifts, you are required to contribute towards their management fee for the services a Factor renders; as well as the material they may need to purchase for maintenance and repairs.
What Is The Average Fee Of A Property Factor?
The specific terms and conditions of the property factor agreement will outline the fee structure and payment terms.
Property factor fees can vary depending on several factors, including the size and complexity of the property or properties being managed, the level of services provided by the factor, and the location of the property.
Based on these factors, Property Factors can charge around £50 per quarter to £200 or £300 for the services they provide. Then there are the management fees of a Property Factor; which can be between £15 and £120 per quarter.
Homeowners are usually asked to pay into a maintenance fund so that there is no sudden payment to be made in case of an emergency and regular repairs and maintenance can be carried out without the risk of a shortage of resources.
What Services Does A Property Factor Render For The Fees They Charge?
Firstly, a Property Factor should be registered with the Scottish Property Factor Register. Then, they can offer the following basic services to homeowners:
- provision of a written statement of services including service charges, terms of engagement, and payment details
- repair and maintenance of communal areas with prior approval of homeowners
- budget management and cost analysis for repair and maintenance work
- record-keeping of receipts and payments
Since the terms of engagement are based on mutual agreement between them and the homeowners, additional responsibilities can be added here.
The above discussion helps to highlight that the responsibility of a Property Factor’s fees lies with landlords and homeowners. This fee is usually paid each quarter against the services that a Property Factor renders to maintain and repair communal areas in a residential area and includes a service fee for the work they carry out as well as a management fee.