It is extremely common for blocks of flats, and now more frequently, housing estates to have the common parts managed by a Property Factor or Block Manager. As Buildings and developments become more complex, the duties of the Property Factor or Block Manager become more complex and more onerous. Fire detection and suppression systems, lifts, door entry stems, lighting, drainage, and common grounds may all fall into their remit, requiring attention. The owners of these systems and areas will be billed for their maintenance, and for the management service in supplying that maintenance
Firms, in Scotland providing such management services and making a charge for them, are governed by the Property Factors (Scotland) Act 2011 http://www.legislation.gov.uk/asp/2011/8/contents. Firms require to be registered with the Scottish Government and to operate in accordance with the Code of Conduct enshrined in that legislation https://91bc.uk/docs/code-of-conduct.pdf (Presently the Code is under Review and a new one is due out, currently delayed presumably due to the Coronavirus)
A Firm of Property Factors may be appointed to a development by the Developer before individual houses or flats are sold, or a group of Owners – either formally or informally constituted – may have appointed the Factor. Either way, assuming that the appointment has been carried out correctly – all owners are bound to the Property Factoring Firm – and the Firm is responsible to all owners.
The Property Factor has a duty to all owners but also has to operate fairly, generally following the wishes of the majority, but at all times complying with every clause in the Code of Conduct and in accordance with the appropriate Deed of Conditions. It is not uncommon for an owner or a group of owners to feel disenfranchised, particularly if they feel that their views, desires or standards are not being met by the Property Factor Firm.
Montana Management has a wealth of experience in such matters. Our Principle has led both the Property Managers Association (Scotland) Ltd and the Institute of Residential Property Managers – the UK wide Education Body for the industry, where he served as Chair for 2 years and then chaired the College of Fellows of the Institute for a further 3 years. Additionally, he was appointed by the Housing Minister and served for three years on the Homeowners Housing Panel – which became the First Tier Tribunal – the Government’s Dispute resolution panel for issues in the Property Factoring industry.
With such extensive experience in Property Factoring matters, Montana Management is ideally placed to advise owners, objectively and fairly on matters of concern between them and their Property Factor. Sometimes, all that is necessary is for a fresh pair of eyes to examine a point of concern and clarify the actions of the Property Factor, or the concerns of the Property Owner. Occasionally, a more formal approach will be required, but always with aim of achieving a non-confrontational solution, allowing an on-going cordial relationship to exist.
On rare occasions, a serious dispute may require a presentation to the Tribunal –
The First-tier Tribunal for Scotland (Housing and Property Chamber) https://www.housingandpropertychamber.scot/
Montana Management is available to assist with the preparation of submissions and ultimately to represent owners at a Tribunal Hearing – if a negotiated solution to the dispute cannot be reached.
For over 30 years we have been involved in advising on the preparation and then interpretation of Deeds of Conditions. We are available for consultation by Solicitors or Developers when such Deeds are being prepared; ensuring a workable Deed in the years to come.
When Owners are seeking a new, or a change of Property Factor, we are available to assist in the preparation of the tender requests to be sent out, ensuring that all Firms are tendering on the same basis, and we are available to advise owners on the suitability of the returned tenders, and the terms on which a new Factor should be appointed.
Where necessary, we can advise on the correct process to dismiss an incumbent Factor.
On occasions where a Property Factor Firm is having a complex issue with a Property Owner or group of Owners, we are available to act as intermediaries, to seek to clarify and resolve the issue, freeing up the time of perhaps a particular Property Manager or members of the Management Team.
At all times, our approach to any form of dispute between a Property Owner and a Property Factor will be to seek an amicable solution, acceptable to both sides, allowing for the contentious point to be closed off and for a cordial relationship to be maintained.