how it works Timeshare cancellation process

Timeshare Maintenance Fees rising?

Maintenance fees are an often-overlooked reality of owning a timeshare or vacation club membership. These annual fees are established to cover the everyday costs of operating a resort, and are split amongst all owners of that resort. It is important to fully understand and consider the cost of maintenance fees when deciding on the purchase of a timeshare.

Timeshare Maintenance Fee Inflations
Timeshare Maintenance Fee Inflations

What do Maintenance Fees Cover?

Timeshare Maintenance FeesJust as with home ownership, there is a cost to keep a timeshare property in shape. Things like general upkeep, landscaping, utilities, and staffing are all necessary to keep a timeshare property usable and attractive to both current owners and potential buyers. There is also a reserve from maintenance fees that is used for the needed occasional upgrades like furniture or new roofing.

Timeshare maintenance fees are often charged on a yearly or monthly basis—regardless of whether you actually use your timeshare. This means that if you don’t take a vacation one year, you are still responsible for paying the maintenance fee bill.

How much do they cost?

Maintenance fees can range anywhere from a few hundred, to a few thousand dollars. Location, amenities, and resort type are all factors that go into determining this cost. One thing to remember is that maintenance fees are not locked in at the amount they were at when you signed the contract. According to the American Resort and Development Association, maintenance fees rise on average 8% per year. This means that a fee that started out at $700 per year will likely cost you more then double that 5 years down the road. Unless specifically stated in your contract, there is no cap on how high the resort can increase your maintenance fees.

What if I stop paying them?

Timeshare Maintenance Fees
Timeshare Annual Maintenance fee Inflation

When you signed the contract to purchase your timeshare, you agreed to pay the maintenance fees for the duration of ownership—which in many cases is forever. If you decide to stop paying your maintenance fee bill, the resort can begin collection efforts against you. This will not only impact your credit score, but in the end could land you in court if the resort developer decides to take civil action. If they decide to foreclose on your timeshare, your credit will be even more heavily damaged.

Conclusion

Timeshare maintenance fees can become a huge burden for owners—especially for those who were unaware or misled about the true cost behind them. When determining whether or not a timeshare makes sense, maintenance fees have to be taken into consideration—not only what they cost now, but also what they are going to cost in 20 years. When calculating the true cost of maintenance fees, as with anything else, the devil really is in the details.

Colorado Consumer fraud timeshare bulletin

Whether you are considering Timesharing vacation ownership or you are already an owner, it is important to understand your timeshare maintenance fees. It is best to learn about these costs before buying a timeshare, so you can make an educated decision about this major, long-term purchase. To Timeshare owners looking for a better understanding of their maintenance fees—it’s never too late to learn! Below, we’ve answered essential questions regarding maintenance fees.

Maintenance Fee

1. An annual fee that a brokerage assesses on all accounts for the ability to keep an account at that brokerage. The Timeshare maintenance fees inflate every year may be larger if an account has few years of ownership on it for a given year. See also: Inactivity fee.

2. See: Timeshare’ association fee.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

maintenance fee

The fee charged by a Timeshare Development to keep an investor’s account. For example, some brokerage firms levy a inflated maintenance fee on accounts that have been inactive during a year. Nearly all firms offering sweep accounts charge an annual maintenance fee.
Wall Street Words: An A to Z Guide to Investment Terms for Today’s Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.

maintenance fee

Another name for a condo association fee and timeshare cancellation and timeshare exit companies pay for the timeshare foreclosure and consumer timeshare attorneys Timeshare maintenance fee, and sometimes used to describe the rent charged to a co-operative apartment owner.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.