What’s in your Factor Fee?

For those new to communal living, understanding the property factoring process may seem a little daunting. From buildings insurance to floats to management fees, there’s lots to learn about property factoring but it’s not as confusing as you may think. Today, we have a look at some common questions regarding property factoring: what’s included within your fee and what you should expect from James Gibb as your property factor.

Why should I have a factor?

There are many reasons as to why your property requires a factor. This can be stated within the Deed of Conditions that a factor must be in place or the majority of owners in your development have voted to appoint a factor. Ultimately, the main bonus of appointing a factor is having that peace of mind when any repair or maintenance work is required, your factor is there to manage this for you.

What areas of my development are covered by the Factor?

With all the developments we manage there’s an associated Written Statement of Services and Development Schedule, which identify our areas of responsibility, tailored to the needs of your property. Examples of which include: gardens, parking areas, lifts, gutters, roofs and tiles, external fabric of buildings, common lighting, security systems, insurance and more!

Why do I have to pay a float and how much is this?

If you decide to appoint James Gibb as your factor, a “float” invoice is issued to the owner(s). What this means is that in order to carry out the required maintenance and pay contractors, insurance etc., we must be “in funds” to do this. This is why we invoice you to cover three months of services when your property becomes one of our factored developments. Of course, the float is returned to you in full as a credit on your final invoice when you sell your property.

What’s covered in the Factor’s management fee?

In addition to the float which is used to pay our contractors for the essential maintenance costs, our management fee covers the duties we undertake to help look after your property. This includes: inspecting the development on an on-going basis, gathering quotations for proposed works, arranging routine repairs, having a dedicated property manager to respond to your queries and ensuring all works are carried out professionally, legally and safely.

To find out more about what your factor fee’s cover, check out our property factoring guide here. Alternatively, if you have any further questions on this topic, please contact one of our staff members who will be happy to assist you.