Communal Services

Let us try and help you answer some of the most common
questions. When it comes to communal charges, if you were
to ask a group of people the following questions Im sure you
would get a multitude of answers, and some very heated
conversations. Fundamentally it is a good idea to start off
with defining what communal services actually are.

FAQs for Communal Areas

What are communal services

facilities?

s the majority of property owners

bought properties off plan or
on new developments, chances are
your development will have a range
of facilities just for the owners or
tenants of that development. Some
developments will have numerous
facilities available to them whilst others
will have very little. Your contract of
sale is likely to state the purchaser
and all the owners of the development
have the right of usage of the common
areas and in this capacity the purchaser
acquires the rights and accepts the
liabilities arising consequently and the
purchaser is bound to pay his share as
to the maintenance, cleaning, running
and upkeep of the same.
Basically communal services are
anything provided on your development
which is available for use for all the
owners, outside your boundary walls.
The most common services are:Swimming pool
Garden
Private road
Private street/complex lighting
Insurance
Lift maintenance & repair
Septic tanks
Roof
Cleaning

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Electric
Water
Legal fees
Gym
Toilets and Showers
Tennis court
Playground

Kirsty & Lee Property Maintenance LTD

FAQs for Communal Areas

Who is
How much should
I be paying?
responsible for
paying communal T
fees?
R

he majority of property owners think

they are paying too much in fees,
this statement is probably true. If you
are using a management company then
chances are you are paying a much
higher premium than necessary. It is
worth getting quotes from a number
of companies to determine if your
premiums are fair. It is important to
remember when obtaining a number
of quotes to be asking for the same
services for a like for like comparison.
Although you have asked for a quotation
asking for specific things, a professional
company should provide you with extra
information and things you should
consider, in order to make sure you are
compliant with the law.

egardless of the property type your

development is made up of, every
property owner on the development
is liable to pay their share of the fees.
It is irrespective of whether you use
the facilities provided or not. A classic
misconception is I live on the ground
floor, therefore I dont use the lift or
electric to power it therefore I dont
have to contribute towards this or I
dont use the pool so Im not paying for
it. This is incorrect, the facilities have
been provided for the whole of the
development, therefore you are liable
for your share whether you use the It would be impossible to give a cash
facilities or not.
figure as every complex is different and
Another very common misconception has different needs.
that the property developer is liable to
pay for the communal facilities for your
development. They built these facilities
at your development for your use and
pleasure. If this is the case you could
say the developer built the house so
they are responsible for paining it 5
years down the line, we all know that
this is absurd, consequently so is the
notion that the developer is responsible
for paying for your facilities. It is also
worth bearing in mind that some
of the facilities provided have been
included to add value to your property
and investment. Should you rent your
property for holiday lets then the facility
of a swimming pool is a must.

Kirsty & Lee Property Maintenance LTD

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FAQs for Communal Areas

How should the

fees be calculated?
A

common myth is that property

owners should pay their share
based on the number of bedrooms their
property has, or all pay the same as they
all have use of the communal facilities.
If as a committee you are happy to do
this and have 100% compliance with
payments and every owner is happy
then this is acceptable.
However
should there come a time where you
have an owner who is not paying, you
will have no legal rights to pursue them
for the unpaid amount. The legal way of
correctly calculating the fees is by the
percentage ownership. In projects with
title deeds that is very easy to identify,
as it is clearly written on the deeds. If
no title deeds are issued the best way to
calculate is by covered sqm. (Ideally the
project architect when available and if t is always a good idea to start with a
they collaborate should identify that list of the things you would like to be
covered, for example I want the cleaning
%)
to be carried out 3 times a week in the
summer and 2 times in the winter and
the toilets to be cleaned daily. This is a
good starting point but be prepared to
compromise on some of the things in
your list. A compromise could be lock
the toilets and issue keys to property
owners therefore they are not used
and abused and will take less looking
after. You will usually find that owners
and paying tenants will look after the
place they reside. In an ideal world Im
sure every property owner would say
that they want their communal areas
to always be clean, however this is
sometimes not feasible due to financial
constraints.

What should be
covered in the
fees?

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FAQs for Communal Areas

The list below is generally what should be

covered in the fees, it is always important
to remember that each development is
different and its needs will be different. A
professional company should be more
than willing to tailor the requirements of
your development and provide you with
a detailed quotation.

Swimming pool
Garden

Private road

Private street/complex lighting
Insurance
Roof

Lift maintenance & repair

Septic tanks

Toilets & Showers

Cleaning
Electric
Water
Legal fees
Gym
Tennis court
Playground

When planning a budget for the

calculation of fees it is necessary to
take into account short, medium and
long term repairs. If you are a block of
apartments, painting and repairing the
cracks is usually the highest cost. What
you need to do is look at the current
state of the whole complex and write a
list of repairs and a time scale of when
the repair is likely to be needed, you can
then work back from here in allocating
a cost for this into your fees. Getting
quotes for repairs is a good idea as it
helps with a more accurate budget.

Kirsty & Lee Property Maintenance LTD

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FAQs for Communal Areas

I only use
Do we need
my property
a solicitor?
in the summer
can I pay half of T
the fees?

he easy answer to this question is NO.

The law doesnt take into account
usage. Ask yourself this, do you go into
a supermarket purchase potatoes and
say well I dont use the skin so I dont
want to pay for it? The same principles
apply to your communal charges.

I rent my property,
should my tenant
pay the communal
fees?

t is entirely at the discretion of the

property owner.
Some owners
calculate the cost of their communal
charges into the rental fee, while some
make the tenant pay, this is sometimes
a very complicated issue. We would
always advise to calculate this fee into
the charge of the rent and include this
on the rental agreement. If an owner
advertises their property at a lower rate
to entice tenants, then asks the tenant
to pay the communal fees as an extra,
should they not pay the fees then the
owner is liable.

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he easy answer to this question

is YES. The advice and support
of a good solicitor is a necessity.
Legal fees are probably the most
disregarded fees by property
owners, however when it
comes to the time when
you need their services,
especially due to unpaid
fees, chances are you are
i n
financial difficulty and have no funds
to pay. Having the finances in place
for legal services from the outset will
assist in a smoother transition. The law
changes frequently therefore having
someone working for you will ensure
you are one step ahead. As a committee
member the solicitor will make sure
you are complying with the law. Your
decisions as Im sure you will think will
always be in the best interests of the
development might not actually be the
right decision. Another certainty is that
some of the decisions you make will not
please every property owner.

Kirsty & Lee Property Maintenance LTD

FAQs for Communal Areas

What if I dont
agree with the
amount I am being
asked to pay?

f you are using a professional

management company they should
always provide you with a breakdown
of all the costs. A good starting point is
to ask how the figure has been derived.
Although sometimes even though you
think the fee is high when you see the
actual breakdown of what is included you
may actually be getting a good quality
package for your communal areas. Ask
your committee why they have included
certain items in the budget. Remember
your committee carry out their roles
free of charge for the good of the
development and their investment. Try
getting involved and helping out, many
hands make light work. A development
who works together and communicates
well is destined for a harmonious future.
If the committee is legally registered
and all their procedures have been
carried out according to the law then
you are bound to pay the amount they
are asking for. I have yet to meet any
committee members asking to increase
payments, they have your interests and
pockets in mind at all times

Kirsty & Lee Property Maintenance LTD

I have paid my fees

so why am I being
asked for more
money for a
lift repair?
T

his is a common mistake made by

whoever has prepared your budget.
Some companies will underestimate
the costs and charges of running your
development in order to secure the
business. A professional reputable
company will factor in a sinking fund for
repairs and improvements.
The amount allocated to contingency
in a budget depends on the nature
of the project, but is usually between
5% and 25% of the total budget. When
allocating a fund for a new project then
the fees can be lower as it is likely that
most of the work will be decorating
and re fitting. The amount however is
required to gradually increase over the
next 5 to 7 years to ensure the fund can
cover expenses for exterior repainting,
replacement pool parts etc.

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FAQs for Communal Areas

Is public liability
insurance enough?

f you are asking the question, is public

liability insurance enough to cover
owners if someone has an accident?
Then the answer is yes, provided you
have enough cover. Many owners
dont take into account insuring their
communal areas, this includes the
building. If you are an apartment owner
on the top floor and the owner below you
doesnt have any insurance, if the worst
was to happen how will your property
be rebuilt? Even though you have your
own personal buildings insurance it is
likely to only cover the internal walls
and internal structure of your property,
even if it covers your external walls,
and the owner below has no insurance
your property is not going to be rebuilt.
It is a legal requirement to ensure the
whole of your communal areas for fire,
lightning and earthquake with a licensed
underwriter, for the sum which the
committee considers as corresponding
to its replacement value.

Why should I
register my
committee?

e would always advise any

committee to register and become
a legal entity through a competent
solicitor. As a committee member you
are legally responsible for the decisions
you make and the running of the
complex. Owners and the authorities
have the right to sue you through the
courts of law, should they believe you
have acted negligently, or not in the best
interests of the complex.

Can the committee

make me pay for
facilities
I dont use?
Y

es. The law does not take into

account usage, the facilities have
been provided for your use, its your
decision not to use them.
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FAQs for Communal Areas

How do we set up a
committee?
A

s an owner of a property in a
complex, under chapter 224 of
the Cyprus Constitution with the
amendments of 2011, it is your obligation
and responsibility, but also your right,
to participate in the formation of the
Official Committee.
Ideally the best time to form the official
committee is at the AGM.

Once the committee has been elected,

then any other business should be
discussed including the maintenance
/ management of the complex. The
budget and any items needed.
You need a legal advisor for the
enactment of the Committee and we
are more than happy to provide you with
the details of an esteem law office who
has organized numerous enactments
island wide.

When do we hold
our AGM?
Y

All owners should be advised of the

AGM in a timely manner in order for
each owner to be able to attend and/
ou should hold an AGM every year to
or appoint someone to represent them
discuss issues and the future for your
at the meeting. You should attempt development. As long as the meeting is
(and have documented proof of your held no later than 14 months after the
attempts) to contact each specific owner. previous years you are still within the
At the AGM, the first official item on parameters of the law. Everyone on
the list should be the voting of the the development needs to be informed
committee. Each property has 1 vote along with an agreed agenda to follow.
the votes should be cast in order to elect It is worth noting that those who have
arrears can attend but do not have the
the committee.
right to vote for anything.

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FAQs for Communal Areas

Can I become
a committee
member?

es provided you have been legally

voted in. Being a committee member
can be both rewarding and unsatisfying
at the same time. A certainty is your
decisions are not going to please
everyone on the complex, as everyone
has different ideas and beliefs of how
they think things should be done. Also
different owners will use the complex
for different reasons, some will be for
personal use while others are purely
for investment purposes. Taking on a
position within the committee is not
something to be taken lightly. Also
as previously stated as a committee
member you are legally responsible
for the decisions you make and the
running of the complex. Owners and
the authorities have the right to sue you
through the courts of law, should they
believe you have acted negligently, or
not in the best interests of the complex.

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What are my
duties and
responsibilities as
a committee
member?
A

s a committee member you have an

obligation to the complex and the
other owners. You have to have make
decisions on behalf of everyone for the
good of the complex. The decisions
you make have to be impartial and free
from personal gain or finance. It is the
committees job to control and manage
the jointly owned areas. To keep the
jointly owned areas in good condition.
The committee need to arrange the
appropriate insurance as set out by
law for the jointly owned areas. The
committee need to maintain a fund
for day to day running and planned
maintenance. To communicate with all
owners and make informed unbiased
decisions for which you have sound
and logical reasons.

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FAQs for Communal Areas

Can I be paid for the

Who can the
time for carrying committee employ
out committee
to carry out
duties?
maintenance and
cleaning?
N
T
o, the time you spend performing
your committee duties are unpaid.
This is a voluntary position, so before you
commit to being involved please make
sure that you have the time to contribute
to your duties. As stated previously you
are liable by the courts of law should
other owners or organisations think you
have acted negligently or not in the best
interests of the complex.

he committee can employ anyone

to service the complex, provided
they are a legally registered company or
employee in Cyprus. For example if you
employ a friend to clean the complex
or look after the pool, you are liable for
employing an illegal worker. This carries
a custodial sentence so you need to be
very careful who you employ.

Can a committee
member be
responsible for
servicing the
complex?
N

o. As a committee member you need

to make unbiased and impartial
decisions for the good of all the owners.
If a decision made by the committee
affects you personally and your
finances, the possibility of you reaching
an impartial decision is going to be
compromised. Being on the committee
and servicing the complex is a conflict
of interest, therefore you are not able
to perform your duties as a committee
member by being unprejudiced.

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FAQs for Communal Areas

Can I get a quote to What do you need in

see if my fees are order to provide a
reasonable?
quote?
A
P
ny owner of a property on a complex
is entitled to ask for a quotation for
the complex. As a committee member it
is their responsibility to ensure they are
providing the best possible services and
facilities for the complex. This doesnt
necessarily mean accepting the lowest
quotation. Yes cost and finances are a
major factor in deciding who will service
the complex, however you need to be
taking into account that all the legal
requirements are followed. Presuming
the committee has asked for a quote
with all the legal requirements and any
extras for the complex, when asking
for an individual quote you should be
asking for the exact same services for a
like for like comparison.

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roviding a quotation for a complex is

not as easy as you would think. As
each complex is different and will have
different needs there are many things to
take into consideration. For example for
an accurate and legal insurance quote
the company will require the year of
construction, covered square meters
and any special facilities or problems
that the complex has which need to
be included. In order for anyone to
provide you with a comprehensive and
accurate as possible quote it would
be helpful if you had historical data of
utility bills, the covered square meters of
each individual property, to know if you
are connected to the main drains and
knowledge of any reoccurring issues/
costs the complex has. By providing as
much information as possible will help
any organisation to be able to compile
an accurate and comprehensive figure
for your complex.

Kirsty & Lee Property Maintenance LTD

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This guide has been written to help answer the

most common questions asked when it comes to
communal areas and fees. Should you require any
further help or information or would like a free no
obligation quote for your complex then please feel
free to contact a member of our team who will be
willing to help you.
Email: complexservices@lee-ps.com