Can flat owners "self-factor" a factored communal property?

magiccake

I live in a converted building which consists of several flats. We use a property factoring company to administer communal tasks such as repairs/maintenance, grass cutting and buildings insurance.

The problem is they are very expensive and too happy to spend communal money.

Is there a way that all the owners in the building can self-factor and manage the property by ourselves? Or is there some law requiring a third party to be the factor?

comeandgo

Our property deeds state we must have a factor but the residents have the power to fire any we think are not performing. This is done by majority vote at residents association meetings.

antrobus

magiccake wrote: »

I live in a converted building which consists of several flats. We use a property factoring company to administer communal tasks such as repairs/maintenance, grass cutting and buildings insurance.

The problem is they are very expensive and too happy to spend communal money.

Is there a way that all the owners in the building can self-factor and manage the property by ourselves? Or is there some law requiring a third party to be the factor?

If you have a factor, you live in Scotland.

I understand that it is common in Scotland for leases to require the appointment of a professional factor or property manager, so you would need to read your lease. In any event, even if you are obliged to have one, alternatives are available, so you can always sack the one you have, and appoint another one.

Factors also have to be registered, and abide by a code of conduct. There is a complaints procedure.

http://www.gov.scot/Topics/Built-Environment/Housing/privateowners/propertyfactors/2011Act

davidmcn

antrobus wrote: »

I understand that it is common in Scotland for leases to require the appointment of a professional factor or property manager, so you would need to read your lease.

The OP is very unlikely to have a lease - Scotland has never really done leasehold tenure for residential properties (and the few which existed have recently been converted into ownership).

AdrianC

I wonder if you and the neighbours who are interested could form a professional factor company, and contract the business to yourselves?

Nebulous2

I had a flat around 25 years ago, just before factoring became common-place. It was probably one of the last developments locally not to have one. I visited there recently and can't believe how rundown the place is. Broken security entry systems, damaged hallways, rubbish in the garden areas.

It is very difficult to organise and get people to pay yourself, with people being human. Somehow factors bills are seen as different and non-negotiable, so I have come to see factors as a necessary evil.

It would be worth pointing out to the existing one that people are unhappy with the service they are receiving, explain why, and tell them you intend changing company unless the situation improves. You are likely to see a marked difference - at least for a few months!

davidmcn

AdrianC wrote: »

I wonder if you and the neighbours who are interested could form a professional factor company, and contract the business to yourselves?

The overheads involved in doing that would probably vastly exceed the other common costs - I've never heard of it being done just to abide by the technicality of a title condition saying there ought to be a factor.

AdrianC

davidmcn wrote: »

The overheads involved in doing that would probably vastly exceed the other common costs - I've never heard of it being done just to abide by the technicality of a title condition saying there ought to be a factor.

If people are going to DIY it, then they're going to either have or need the equipment anyway. The only difference is whether there's a legal structure in place.

It could also save any arguments between those who do and those who won't do. Those who won't do pay in, those who do draw out nominal recompense after equipment costs.

davidmcn

AdrianC wrote: »

If people are going to DIY it, then they're going to either have or need the equipment anyway. The only difference is whether there's a legal structure in place.

The "equipment" for self-factoring is often just the back of an envelope to work out everybody else's share of the bill you've paid.

AdrianC

davidmcn wrote: »

The "equipment" for self-factoring is often just the back of an envelope to work out everybody else's share of the bill you've paid.

I was thinking more of lawnmowers etc.

Pixie5740

First of all check your title deeds. Title deeds set out:

which parts of the property you own
which parts of the property you are responsible for maintaining
how your building is managed (for example, it may be managed by a factor)
what proportion of certain areas you own (for example, you may own 50% of the roof or garden)
who is responsible for repairs and maintenance
how the cost of repairs and maintenance should be divided up.
These responsibilities are known as 'burdens'.

If you do need a factor there's nothing stopping you from getting together with the other owners, sacking the factor and finding a new one.

If your title deeds don't say who is responsible for maintaining the communal areas then you can use the Tenement Management Scheme.

Shelter Scotland has some good advice about the responsibility of repairs and maintenance in communal areas.