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Housing services

What does my factoring fee pay for?

There is a number of office based tasks that must be carried out to ensure that the factoring service is running and that necessary common repairs are attended to including all of the correspondence and administration beforehand and all of the invoice preparation and billing afterwards.

The factoring fee pays for the members of staff who carry out all of the tasks described under the section, What does the council do as factor? By paying your factoring fee you are ensuring that the council is able to respond to any common repairs issues affecting your block. Your factoring fee also covers other costs including the fee paid to the Scottish Government for registering as a property factor, printing and postage of letters, invoices, newsletters and written statements, telephone and email advice and information and the cost of arranging formal close meetings and focus groups.

If there was no factoring fee there would be no factoring team. The only members of staff would be council officers who are funded by tenants' rents. If common repairs are required, those members of staff could not be expected to make any arrangements for homeowners who were not paying anything towards them. Not only is it unfair for tenant's rent money to be used for homeowners services, it is also against the law. We are not allowed to use tenants' rent money to subsidise private homeowners. Similarly, we must not use income from private homeowners to subsidise council housing.

It costs the same to arrange, carry out and recharge small repairs as it does large repairs. Some factored blocks will require more repairs than others depending on a number of issues. By charging the factoring fee we are able to provide the high quality service that we would like to every factored customer if and when they require it however large or small the repair is. Since you are a factored customer you have the guarantee that if a necessary common repair is required at your block, we will attend to it.


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