All condominium complexes in the Cayman Islands are required to implement what is known as a “Strata Corporation” or if you are from North America you may know them as a Condo Association or Home Owners Association. This is a group of owners and perhaps a representative from the developer or builder that should implement and monitor the rules and regulations that govern the complex. These rules and regulations are known as Strata By-Laws and each and every Strata Corporation have them. All owners will be given a copy of these By-Laws when they purchase in a particular complex or if you wanted to see the By-Laws of any complex before you purchase, you can acquire them from the Lands and Survey department, they have a copy of all Strata By-Laws registered on the Island.

Each Strata Corporation upon its inception puts together their Strata Executive Committee; this committee is elected by the owners or the owner’s representative at an annual general meeting. It is the responsibility of this committee to ensure the smooth running of the complex and to deal with the day to day operations, from ensuring the pool and grounds are maintained to keeping accurate accounting of funds paid by each of the owners as well as bill each owner and make sure all fees are current. These are just a few of the tasks that a Strata Committee member or members may perform. Sometimes a complex will decide to hire an outside firm to manage the Strata and the day-to-day operations with the elected committee members available for decisions and feedback. Strata’s may opt to do this, as being part of a Strata Committee can be very time consuming and if  a complex does not have individuals that are up to the task or have the physical time to commit, then the cost to hire the management company can be justified.      

This brings us to Strata Fees, the Executive Committee of each complex set what the Strata fees are for each unit in their complex based on what it costs to run and insure the complex. As well, many Strata’s after Ivan have implemented a reserve fund, a fund which accumulates for a rainy day or for when a major project is required on site, this way each owner is not asked to dig deep in their pockets all at once. These projects could be anything to fixing a leaking pool, to re-surfacing the driveways and parking areas to replacing roof etc. It could be anything that is in need of repair or replacing. 

Strata Fees are calculated in a number of ways, one used quite regularly is where the fees are set based on the square footage of each unit. The larger the unit the more an owner will pay as they have a larger share of the Strata lot. The strata committee will determine what the total fixed costs per month are then this cost is split between all units based on the square footage of each unit. This is just one way fees are calculated, keep in mind each complex will determine their fee structure.

Your strata maintenance fees will cover such things, as landscaping upkeep, regular pool service and cleaning, garbage pick up, sewage costs, building upkeep, cleaning and upkeep of common areas such as common rooms or gyms, complex maintenance and any other items that are outlined in the complex’s By-Laws. These fees can vary quite a bit between complexes based on the size of the complex, both the physical size and the number of units, the amenities at the complex as well as its location. The Strata Insurance fees are also figured generally based on the size of the unit. Insurance premiums cover hurricane and fire related issues as well any other items the Strata may deem necessary. We have seen the insurance costs go up quite substantially after Ivan and the past active hurricane seasons. There is really not a lot anyone can do about this, we are actually fortunate to still be able to insure as some of our neighbors do not have this luxury.

When looking for property and trying to decipher between complexes and their fees, even when looking at CIREBA (Cayman Islands Real Estate Brokers Association) listing sheets, keep in mind fees listed can and do change sometimes without warning. It is a good rule of thumb to ask the agent you are working with to double check what the current fees are for complexes that interest you, this way you can avoid any unexpected surprises.

To contact on of our agents please call +001 345 943 1234 or email.