The administration costs of providing the factoring service is covered by the annual management fee which we charge to all owners. This fee enables us to offer a range of services including organising common repairs and major works, arranging buildings insurance, organising and attending owners’ meetings, communicating with you via our newsletters and website and issuing invoices and statements of account.
Historically we have charged a flat rate fee, which is reviewed as part of our annual budgetary process and is based on a number of factors. These include the management cost per property, staff costs, business overheads, inflation and a financial return set by our Management Committee. The management fee for 2021/22 has been set at £156.00 plus VAT per annum.
Having reviewed the way that we communicate with owners, we have identified costs savings that can be made by issuing invoices, reminders and other correspondence electronically. As a result we are able to offer a reduced management fee of £146 plus VAT to owners who are willing to receive all of their correspondence by email.
Our aim is to keep the management fee as competitive as possible, while delivering an excellent level of service to all of our customers. We always welcome customer feedback as we strive to continually improve the services offered.
When you first become a customer of the Association, we will take a small deposit from you, currently £100. This deposit will automatically be returned to you if you sell your property or move to another factor, if your account is up to date and you do not have any outstanding debt due to us.
The deposit allows us to fund the repairs and services that are provided for your property, without approaching you to ask for payment every time work is required. As factors we are not obliged to fund work to an owners property and this small deposit helps to prevent delays when repairs have to be carried out.
Your share of costs
The costs of maintaining your property are divided among owners in accordance with your title deeds. As factor we have no influence over the share of costs defined in the title deeds.
We aim to provide you with easily understood bills by post on a six monthly basis, which give details of your share of charges during each billing period.
Our billing periods cover 1 April to 30 September and 1 October to 31 March and we aim to issue the bills within six weeks of the end of each period. We require our bills to be paid in full within 28 days of being issued.
We will only issue bills in the name of the property owner and will not issue them to tenants where the property is rented out by you.
Any routine repairs will be recharged to you in arrears, after we receive invoices from our contractors. Other common charges may be invoiced in advance, where the association is charged in advance.
Where major improvement work is required to a property, we will normally request payment in advance. Any payments made in advance will show as funds held on your behalf, in our records until the work is completed and we have issued a bill to you. Bills for major improvement works will normally be issued within one month of the work being completed. We do not ask owners to make contributions to a cyclical maintenance fund at present.
If you have a query about any of the charges shown on your bill, please contact us within 14 days of receiving the bill.