In depth
How a resort community runs: management, fees, common areas and who decides
A resort community, whether a hotel complex or a residential development with shared facilities, is a small town with a single purpose. Someone has to clean the pools, mow the lawns, guard the gates, collect rubbish, fix pumps and pay the power bill. In most countries, that is done by a management company funded by fees from owners. In Cuba the arrangements differ because the land is state property and the operators are state groups or foreign managers. This guide explains how resort communities are run in general, how it works in the Cuban setting, and what a reader should ask. It does not sell property.
What a management company does
In a typical resort community, a management company operates common facilities: pools, gardens, roads, security, beach clubs and reception. It maintains buildings' shared parts, such as roofs and lifts, and provides services such as housekeeping and rental management to owners who want them. The company is paid from service charges set in a budget that owners approve or that is set by the developer under the founding documents. Good management preserves the value of homes, and poor management erodes it.
Fees and budgets
Service charges cover the running costs: staff, utilities, repairs, insurance, security and a reserve fund for large works such as repainting or replacing roofs. A budget that is too low leads to deferred maintenance and later special levies, while one that is too high burdens owners. Transparent annual accounts, published to all, let owners see how money is spent. When considering any managed community, ask for the budget, the last accounts, the reserve fund balance and the history of increases.
Rules and who decides
Residents in communities follow rules on noise, use of facilities, pets, rentals, alterations and appearance. In some places, an owners' association elects a board that oversees the manager. In others, the developer retains control for years. The balance of power matters: an association with real authority can hold managers accountable, while a community controlled by the developer may have little say. Check the governing documents for who can change rules and charges.
The Cuban setting
In Cuban resort zones, the land is state property and the facilities are operated by state tourism groups, often with international hotel companies under management contracts. Residential communities for sale to foreigners are few and have special regimes defined in each project's approval. Common areas and services are provided by the operator, and charges follow the contract. Owners of use rights in such projects should obtain the documents that explain who manages what, what they pay and what happens if the operator changes.
Because the framework is specific to each project, a reader should avoid assuming that rules from other countries apply.
Rental programmes
Some resort communities offer rental programmes in which the operator lets owners' units to guests and shares the income. These can be attractive but come with fees, restrictions on owner use and uncertainties about occupancy. Ask for the occupancy history, the revenue split, the costs charged and the contract's terms for ending the arrangement. Illustrations of potential returns are not guarantees.
Questions to ask
A short list helps. Who owns the land and the common areas? Who manages, and under what contract and for how long? What are the charges, and how have they changed? What does the reserve fund contain? What are the rules on rentals? What happens in a hurricane, who insures what and who repairs? What rights does an owner have to information and to vote? Written answers are the basis of a sound decision.
This page does not manage resorts, sell units or give legal advice.
Governance models compared
Communities of owners are governed differently around the world. In the United States, condominium laws let owners elect a board that runs an association, collects fees and enforces rules, with courts available for disputes. In Spain, the horizontal property law creates a community of owners with a president and an assembly that votes on spending. In Mexico, condominium regimes are regulated by state law, with administrators appointed by owners. These models share the idea that shared property is run collectively by those who own units.
Cuban resort projects are different, because the land is state property and owners hold limited rights. Governance is set by the approval of each project and by contracts with the operator. The lesson is not to import expectations from elsewhere, but to read the documents.
Rental pools and revenue sharing
In many resorts, owners can put their units into a rental pool managed by the operator. Revenue from guest stays is collected, costs and a management fee are deducted and the remainder is shared among participants, often according to the size or quality of units. Pools smooth income and reduce the effort of owners, but returns depend on occupancy, and owners may be limited in their own use. The accounts should be transparent, and owners should be allowed to inspect them.
A common mistake is to treat projected returns as promises. Ask for historical statements covering several years, including low seasons, and look at what share of income goes to costs.
Insurance in shared communities
Resort communities insure the buildings and common areas, and owners insure their contents and their liability. Policies in storm-prone areas often exclude or limit named-windstorm and flood cover, or apply high deductibles. Owners should know who insures what, what the policy excludes and how claims are handled after a storm. Underinsurance is a recurring problem after hurricanes, when rebuilding costs exceed cover.
Resale and exit
The ease of selling a unit depends on demand, on the clarity of title and on the rules of the community. Some communities require approval of buyers or give the operator a right of first refusal. Transfer fees may apply. In Cuban projects with long-term use rights, the remaining term on the right affects value: a right with ten years left is worth less than one with eighty. Ask how resale works, whether other units have resold and at what prices.
Environmental obligations
Resort communities are expected to treat wastewater, manage waste, protect beaches and vegetation, and use water and energy efficiently. Environmental licences set conditions that the community must meet. Failures can lead to fines or restrictions. Owners benefit from good environmental management through a more attractive place and lower risks.
This page does not manage communities or sell units.
How owners' meetings decide
Where owners have a say, decisions are taken at meetings. A notice is sent in advance with the agenda. A quorum, a minimum number of owners or shares, must be present for decisions to count. Proposals are discussed and put to a vote, with some matters requiring a simple majority and others, such as changes to the rules or large spending, a higher majority. Minutes are recorded and shared. Owners who cannot attend can often vote by proxy. A well-run meeting is businesslike, courteous and focused on documents and facts.
In Cuban resort projects, the arrangements for participation depend on the project's authorisation and contracts. Owners should ask in advance what rights they have to attend and vote.
Settling disputes inside a community
Disputes arise over noise, use of facilities, unpaid fees, alterations and the performance of the manager. The first step is a direct conversation, then written notice, then mediation by a neutral person and finally arbitration or court. Communities with a clear procedure resolve conflicts faster and at lower cost. Documents should say who can impose fines, how appeals work and how costs are shared.
Sustainability inside a resort
Resorts use large amounts of water and energy and produce waste. Sustainable operators set targets and measure results: installing solar water heaters, using efficient lighting and air conditioning, recycling water for gardens, composting food waste, reducing single-use plastics, protecting beaches and employing local people. Guests and owners can support these efforts by conserving resources and following guidelines. Sustainable practices also reduce costs in the long run.
Two hypothetical communities compared
Consider two imaginary resort communities. In the first, an owners' association controls the budget, publishes accounts, elects a board and hires a manager under a contract that it can terminate. In the second, the developer retains control, sets fees without owner votes, provides few reports and cannot be replaced. Owners in the first community can influence service and costs, while those in the second depend on the developer's goodwill. The example shows why the governance documents matter as much as the amenities.
This page does not manage communities.
Fees to expect and how to compare them
Residents of managed communities typically pay a regular charge for services plus occasional special levies. When comparing communities, divide the annual charge by the area of the unit to find a cost per square metre, and see what it includes. Check whether the charge has risen faster than inflation, whether reserves are healthy and whether the manager takes a fee on top. Low fees may signal underinvestment, and high fees may reflect lavish services or inefficiency.
Comparing management quality: signs to look for on a visit
A visit reveals management quality. Are gardens neat and pools clean? Do staff greet guests? Are paths well lit and safe? Do lifts and pumps work? Is there visible damage left unrepaired? Do residents seem content? Are notices clear and up to date? Talk to a few residents and ask about service and charges. A community that looks cared for generally is.
Common questions
- What do service charges pay for?
- Staff, utilities, repairs, insurance, security and a reserve for major works.
- Who controls a resort community?
- It depends on the documents: an owners' association, the developer or the operator.
- How do Cuban resorts differ?
- Land is state property and operators are state groups or foreign managers under contract.
- Are rental programmes guaranteed?
- No. Occupancy and income vary. Ask for history and terms.
- Do you sell units?
- No. This page is information only.
- Can owners remove a manager they are unhappy with?
- Where owners control the association, they can usually do so by vote following the contract's termination clause. Where the developer controls, they may not. Check the documents before buying.
- Who pays for hurricane repairs of common areas?
- Usually the community through its insurance and reserve fund, with special levies if funds are short. Ask what insurance exists and how repairs were funded after past storms.
- Are pets and short-term rentals allowed?
- Community rules decide. Many communities restrict pets or rentals. Read the rulebook before you commit.
- What is a sinking fund?
- A reserve built up from regular contributions to pay for major future repairs, such as roofs, lifts or repainting. A healthy reserve spares owners sudden large levies.
Official sources and where to go next
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