In Scotland, the roles of letting agents and property factors are often confused, as both play significant roles in managing residential properties. However, the law makes clear distinctions between the two. Understanding these differences is crucial for tenants, landlords, and property owners, especially when it comes to knowing their rights and who to contact in different situations.
What Is a Letting Agent?
A letting agent is a business or individual who manages rental properties on behalf of landlords. Their duties typically include:
- Marketing properties for rent
- Finding and vetting tenants
- Preparing tenancy agreements
- Collecting rent
- Managing property maintenance requests
- Handling tenancy check-ins and check-outs
Letting agents must comply with the Letting Agent Code of Practice and be registered with the Scottish Letting Agent Register, ensuring they meet legal standards.
What Is a Property Factor?
A property factor is a person or business hired to manage the communal areas of residential properties, particularly in blocks of flats or housing estates. Their responsibilities often include:
- Organising communal repairs
- Arranging building insurance
- Cleaning and maintaining common areas
- Managing payments from homeowners for shared services
Property factors are governed by the Property Factors (Scotland) Act 2011 and must be registered with the Property Factor Register.
When Is a Letting Agent Not a Property Factor?
A letting agent is not a property factor when their services are exclusively related to individual rental properties rather than communal areas or shared services. The key distinction is:
- Letting agents work on behalf of landlords to manage private rented properties.
- Property factors work on behalf of homeowners to manage common property or shared services.
Even if a letting agent manages several flats within a building, they are not considered property factors unless they take on duties related to the management of common areas for all property owners.
For example:
- If a letting agent arranges repairs inside an individual flat, they are acting as a letting agent.
- If they arrange repairs to the communal stairwell or roof on behalf of the property owners, they could be seen as acting as a property factor.
Why Does It Matter?
The distinction is important because different laws apply to each role. If a business is acting as a property factor without registering, they may be breaking the law. Tenants, landlords, and homeowners need to understand which party is responsible for different aspects of property management to know where to direct complaints or disputes.
As professionally qualified letting agents Northwood we are ideally placed to assist with individual rental properties including several properties contained within a block and can take forward instructions on an individual landlords’ behalf. When it comes to managing shared communal issues, a registered factor is required to deal with communal issues with two or more owners of a shared area.
Understanding these distinctions helps clarify responsibilities and ensures both landlords and tenants know their legal rights. If you’re unsure whether your property manager is acting as a letting agent or property factor, get in touch and our property experts will be able to assist, you can also check the Letting Agent Register or the Property Factor Register for clarity.
For more information about Lettings-related matters, visit our website at https://www.northwooduk.com/aberdeen-estate-agents/ or contact the Lettings team at
(01224) 218450 or aberdeen@northwooduk.com
