Frequently asked questions about hiring a property manager or factor
Find answers to frequently asked questions about hiring Link Homes as a property manager or factor in East, West and Central Scotland.
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- Do we have to pay for a factor? Nobody told me of a factor when I purchased the property
- What is a Deed of Conditions?
- What is a float and why do I have to pay for this?
- I already have common buildings insurance, why do I have to pay the factor?
- Why do we have to have common insurance? Can't we just do our own thing?
- Are contractors directly employed by you?
- Do you get commission for employing certain contractors?
- How do we cancel your contract?
- What will you do about noisy neighbours?
- Why is my new bill higher than my last one?
- My neighbour has erected their own satellite dish, can the factor have it removed?
- I rent out my flat - why have you sent the bills to the flat when I don't live there?
- It was my neighbour's fault that water leaked and brought down my ceiling. Why should I have to pay the insurance excess charge?
- The lift keeps breaking down. Why do we have to pay for the repair - surely the developer is responsible?
- The owners' association made a decision at the recent meeting that I do not agree with. Am I bound by it?
- There is an item on my account for legal expenses for pursuing an owner who had not paid their bill. Surely that is the factor's cost?
- The flat next door is let. Why should I have to live next door to 'tenants'?
- What can I do if the Deed prohibits the letting of property but my neighbour is renting out their flat?
- My friend owns a cleaning company and I think that they would do a far better job of cleaning the block than the current contractor. Can I just tell them to take over?
- Why are other managers cheaper?
Do we have to pay for a factor? Nobody told me of a factor when I purchased the property
In terms of developers' planning obligations, there is a requirement to make provision for the future care and management of the communal parts of a development. The Deed of Conditions provides for the initial appointment of professional managing agents. Your solicitor may have advised you of this prior to purchase.
What is a Deed of Conditions?
A legal document outlining your responsibilities/obligations in terms of the title of your property.
What is a float and why do I have to pay for this?
In most modern residential developments under the terms of the Deed of Conditions, each owner is required to contribute a float on taking entry to the property. The factor uses this money as a working fund to ensure efficient payment of generally recurring services. As this fund is constantly utilised there is no refund of interest.
I already have common buildings insurance, why do I have to pay the factor?
Under the terms of the Deed of Conditions, each owner is obliged to contribute to the cost of the Common Buildings Insurance Policy. It is likely that your private insurers will consider a premium refund when explaining your obligations as a joint owner.
Why do we have to have common insurance? Can't we just do our own thing?
By having a block policy we can ensure that all parts are covered in case of a major claim such as fire or flood. Additional benefits are that it would be all dealt with as one claim, with one excess payment and under one loss adjuster/contractor. It also normally works out cheaper for everyone.
Are contractors directly employed by you?
Most companies employ an approved list of contractors. We work to ensure contractors provide a good level of service and offer good value for money.
Do you get commission for employing certain contractors?
No, we don't derive any benefit from employing certain contractors.
How do we cancel your contract?
Refer to your Deed of Conditions for guidance. It may be that there is a requirement to call a meeting or a simple majority of owners may be sufficient. Always make sure you have made plans to have a reputable manager in place before terminating the contract.
What will you do about noisy neighbours?
Factors have no power to engage with 'noisy neighbours'. If you are having trouble with neighbours you should call the police or consult your local authority's anti-social behaviour team.
Why is my new bill higher than my last one?
The amount you are charged relates to the specific services actually carried out during the accounting period.
My neighbour has erected their own satellite dish, can the factor have it removed?
There are two issues here. 1) Did your neighbour obtain appropriate planning consent from the local authority? 2) Has the aerial/dish been attached to the building in contravention of the Deed of Conditions? Factors have no authority to remove the aerial/dish but can assist by suggesting remedial action.
I rent out my flat - why have you sent the bills to the flat when I don't live there?
Correspondence and accounts, as a matter of default, are directed to the specific address of the managed property. In the event that owners do not occupy the property they must ensure that the factor has details of an alternative address for correspondence.
It was my neighbour's fault that water leaked and brought down my ceiling. Why should I have to pay the insurance excess charge?
In terms of the Policy cover, the onus to pay any excess lies with the claimant, regardless of the nature or cause of the insured incident. Notwithstanding, it may be that your neighbour would be prepared to recompense your outlays if requested.
The lift keeps breaking down. Why do we have to pay for the repair - surely the developer is responsible?
Once the initial warranty period expires, responsibility for repair, maintenace and insurance of the lift mechanism lies with the co-proprieters, in accordance with the Deed of Conditions.
The owners' association made a decision at the recent meeting that I do not agree with. Am I bound by it?
The Deed of Conditions will lay down how different types of decisions are to be made. If it was an official decision made at a quorate meeting, within the terms of the Deeds, then you are bound by it and are liable for your share of any related expenditure.
There is an item on my account for legal expenses for pursuing an owner who had not paid their bill. Surely that is the factor's cost?
No. The owners are all liable for the costs incurred in terms of managing the development. Pursuing non-payment is one such cost and has to be borne by all owners. Equally, the cost may be recoverable from the owner, in which case it would be refunded to the accounts.
The flat next door is let. Why should I have to live next door to 'tenants'?
Provided that there is no prohibition against letting in the Deed of Conditions or the Title Deeds, then an owner is entitled to let their property. However, the tenants must adhere to the rules under the Deeds - e.g. refraining from causing noise. It is up to the owner to ensure the tenants adhere to these rules. Any owner letting a property must be registered with the local authority under the Landlords Registration Scheme.
What can I do if the Deed prohibits the letting of property but my neighbour is renting out their flat?
Any owner or group of owners is entitled to raise an action against the offending owner.
My friend owns a cleaning company and I think that they would do a far better job of cleaning the block than the current contractor. Can I just tell them to take over?
It is not that simple. Most managing agents operate a strict criteria for approved contractors and as such any potential contractor would have to comply with all of the requirements, which include appropriate insurance and health and safety certificates.
Why are other managers cheaper?
Most managing agents will ensure clients get value for money. That is a priority. All repairs, however, have to be carried out properly and in accordance with Health and Safety legislation. This can sometimes mean that it is more costly for basic items of maintenance such as cleaning of windows and repairing gutters.
Thanks to the Property Managers Association Scotland for their assistance with this FAQ.