Why do i pay a factor?
Why Do I Pay a Factor?
Understanding What You’re Really Paying For – with Factors Direct
Buying a home is one of the biggest financial commitments you’ll ever make and the costs don’t stop once you’ve got the keys. From insurance to ongoing maintenance, keeping your property in great shape comes with regular expenses. So when that quarterly bill from your property factor lands, you may be wondering – what exactly am I paying for?
At Factors Direct, we believe that clarity and value go hand in hand. In this guide, we break down what property factoring really involves, what your fees cover, and how to know if you’re getting the service you deserve.
What Does a Property Factor Actually Do?
Your property factor is there to manage and maintain the communal areas of your development, things like stairwells, gardens, roofs, car parks, and lifts. It’s about protecting the shared spaces around your home, which helps retain the value of your property and keeps your environment safe, clean, and well-maintained.
At Factors Direct, we handle:
- Routine maintenance (e.g., gutter cleaning, grounds maintenance)
- Emergency repairs
- Ongoing upkeep of shared systems like entry doors, lifts, and gates
- Insurance administration
- Health and safety compliance checks
- Site visits to monitor standards
- Financial management, including collecting and paying contractor fees
- Mediate between neighbours if required
We also liaise directly with contractors, estate agents, and solicitors to ensure everything runs smoothly, whether it’s arranging a repair or assisting with a property sale.
What Are My Factor Fees?
Many homeowners assume that all charges on their invoice go directly to the factor. Most of the costs are recharged services, meaning the factor acts on your behalf to pay third-party contractors. The only payment that goes to the factor directly is the management fee.
At Factors Direct, your bill might include charges for:
- Communal buildings insurance
- Cleaning of shared spaces
- Landscaping and grounds upkeep
- Annual gutter cleaning
- General repairs and maintenance
- Our management fee (clearly separated)
We never apply mark-ups or commissions to contractor services or insurance policies – what we’re charged is what you’re charged.
What Does the Management Fee Cover?
Your management fee goes toward the essential behind-the-scenes work of running your building efficiently. At Factors Direct, this includes:
- Organising and overseeing maintenance and repair work
- Managing insurance cover and claims through a trusted broker
- Tendering for competitive contractor quotes
- Monitoring contractor performance and checking workmanship
- Issuing transparent quarterly accounts
- Handling complaints and resolving service issues
- Pursuing unpaid fees on behalf of all homeowners
- Communicating regularly with homeowners
- Chairing homeowners’ meetings and issuing minutes
- Providing 24/7 emergency contact service
- Managing advance payment funds and sinking funds
We don’t just keep things ticking we actively protect and add value to your property.
Can I See Where My Money Goes?
Absolutely. Transparency is key to trust. You should always be able to request a detailed breakdown of your charges, know what services are scheduled, and be informed about any changes in advance.
At Factors Direct, we ensure our invoices are clear and itemised. If you ever feel something isn’t being delivered as promised, or if a contractor’s work doesn’t meet your expectations, we want to hear from you – and we’ll act.
We also have a 24/7 emergency call service and assign dedicated property managers to small portfolios, so every development gets the care and attention it deserves.
What If I’m Unhappy with My Current Factor?
If you’re not getting good service or feel you’re overpaying, you don’t have to stay locked in. Changing factor is easier than you might think. Often, it only requires a majority vote from homeowners in your development.
Factors Direct can support you through the switching process. We’ll help with everything—from drafting letters and coordinating with neighbours to reviewing your current contract and ensuring a smooth transition.
Ready to Switch? Let’s Talk
Choosing the right factor isn’t just about cost—it’s about trust, service, and peace of mind. At Factors Direct, we treat every property like our own and every client like a neighbour.
Get in touch today for a no-obligation management proposal. We’ll walk you through the services we provide, estimated fees, and what’s involved in making the switch.
