Self-factoring means the owners will need to come together to deal with any maintenance or management issues that arise in their building.
Understanding Self-Factoring
Based on information from October 10, 2023, self-factoring is the approach taken for building management and maintenance when a professional factor has not been appointed. Essentially, the responsibility for looking after the building falls directly onto the shoulders of the property owners.
When owners choose or need to self-factor, they collectively take on the tasks typically handled by a professional factor. This involves:
- Identifying and addressing maintenance needs: This can range from minor repairs to major structural work on common areas like roofs, stairwells, or shared gardens.
- Managing finances: Owners are responsible for collecting funds from all relevant parties to cover the costs of maintenance, insurance, and other building expenses.
- Making collective decisions: Owners must come together to discuss, agree upon, and implement necessary actions for the building's upkeep and management.
- Handling administrative tasks: This includes managing insurance policies, fulfilling legal obligations related to building safety and maintenance, and keeping records.
In essence, self-factoring requires active participation and cooperation from all owners to ensure the building is well-maintained and smoothly managed. It directly contrasts with appointing a professional factor who handles these responsibilities on behalf of the owners for a fee.
