property factors – pros and cons
Are you thinking of engaging a Property Factor rather than managing your block yourself?
Here’s our for and against which might help with your decision.
Pro’s for having a Factor.
- Being registered and governed by the Factors Code of Conduct, they have the legal provision to steer the owners in the right direction.
- They are in place to ensure the upkeep of the communal spaces and the safety of the residents.
- They will carry out works and collect sums for payment that may otherwise take months to organise between owner occupiers.
- Cleaning gutters, stair cleaning, lift maintenance, lighting, roofing inspections / repairs, garden upkeep, compliance testing and a common insurance policy are all taken care of under a property management contract.
- Regular inspections of the common areas of the buildings and grounds to ensure that the building is maintained to a high standard.
- A properly managed development will be worth more than a non-managed development, as years of wear and tear can be seriously detrimental to the capital value of the property.
- Quarterly bill detailing all the expenditure in one place.
- Value-added service removes the hassle of self-managing this amongst owner occupiers.
- They will chase non-paying owners and will instruct debt collection agencies to pursue any arrears.
- They are up to date with changing regulations and safety matters, such as the current issues with cladding following the Grenfell tragedy.
Con’s for having a Factor.
- A bad factor can be worse than an owner-managed block, assuming the residents are actively involved.
- If you are not happy with the service provided, you will need a majority approval to switch. This sounds easy, but the more people there are in the development, the harder this becomes.
- If the factor is poor, the cost of the service does not provide value and owners sometimes take on some responsibilities themselves whilst also still paying the Factor.
- No transparency with costs, repairs or invoicing can lead to disgruntled owners and disputes between co-proprietors and the factor.
- If the factor is not proactive in chasing any outstanding debt, services could be disrupted, works placed on hold and bills left unpaid.
At Factors Direct we are an impartial voice that should guide the owners in the right direction and will help maintain the capital value of your asset, maintain compliance with ever-changing regulations and ensure that your asset is appropriately insured in line with current values.
Transparency is key to our service, owners are kept abreast of all repairs and associated costs and always notified in advance of any matters relating to the common areas of the building.
Our owners are at the heart of everything we do, and we pride ourselves on personalised and customer service based approach to property management.
