Purchasing a timeshare comes with a lot of responsibility, so it’s vital to research all that goes into one to avoid unexpected costs. In addition to the initial purchase price, timeshare owners must also pay annual maintenance fees for their home resort. With this, you might wonder, “What are timeshare maintenance fees, and what do they cover?” Fortunately, we’re here to give you the full rundown on annual fees and how they work. Continue reading to learn all there is to know about timeshare fees today!
What Are Timeshare Annual Maintenance Fees?
Timeshare annual maintenance fees are paid by timeshare owners and go towards regular maintenance of the timeshare and resort. These fees are the timeshare owner’s responsibility and can increase yearly due to inflation. Moreover, payments are collected by the timeshare resort management. The fees help cover the expected costs of maintaining a timeshare property to ensure satisfaction among its guests.
For example, timeshare maintenance fees cover regular upkeep costs, like keeping the timeshare property clean and up-to-date. They can also go towards renovating units and amenities. So, maintenance fees are a must if you’d like to travel back to a comfortable and luxurious timeshare each year. Lastly, maintenance fees are non-negotiable and must be paid annually regardless of whether you use the property.
Next, let’s dive into the average 2023 timeshare maintenance fee cost.
2023 Timeshare Maintenance Fees Cost
While timeshare maintenance fees vary from resort to resort, it’s still necessary to consider the total average cost of timeshare maintenance fees. According to the “State of the Vacation Timeshare Industry,” a US study by ARDA, the average timeshare purchase price rose from $18,760 in 2019 to $24,170 in 2023. With increased timeshare prices, timeshare maintenance fees have also gone up. The average maintenance fee was around $1,080 in 2019 and has risen to $1,260 in 2023. As this is just the average price of fees, remember that fees can differ from owner to owner. Factors that can determine a fee amount are the resort’s location, amenities, and popularity.
Moreover, while the price may seem hefty, it’s important to note that with inflation, fees can rise alongside timeshare costs. So, as fees can go up from year to year, it’s essential to factor them into your vacation ownership budget continually.
What Do Timeshare Maintenance Fees Cover?
So, now that we have covered what timeshare maintenance fees are and how much they cost, let’s discuss more thoroughly what these annual fees cover. Maintenance fees cover the cost of running the resort, including staffing, property taxes, and unexpected expenses. Other expenses include landscaping, utilities, housekeeping, renovations, and much more.
While paying fees doesn’t sound like a vacation dream, it serves well. So, if you enjoy traveling to a luxurious and well-maintained resort with phenomenal amenities and services, it is essential to pay your annual fees.
Understanding the Costs of Timeshare Ownership
Aside from understating the importance of timeshare maintenance fees, it’s also crucial to understand the costs of timeshare ownership. Like purchasing a home, multiple bills and expenses come with your ownership. Aside from the initial purchase price, timeshare ownership costs include the initial down payment, membership and interest payments, maintenance fees, property taxes, and special assessments.
Further, to help lessen the upfront purchase price, folks can finance their timeshare. Financing a timeshare helps owners make easy, flexible, and affordable payments. Lastly, although timeshare ownership may initially sound costly, it’s a gateway to guaranteed annual vacations for a fraction of the cost of booking a hotel stay each time.
Special Considerations for Points and Floating Weeks
Many timeshare owners prefer buying points or weeks-based timeshares due to their flexibility and ability to travel in different resorts. However, in a points-based system, maintenance fees and club dues are often required and can up the total price of the timeshare. Of course, the cost varies and depends on factors such as the number of points you own.
Further, floating weeks can require different fees depending on the resort and unit. With this, reading the terms and conditions of your points or floating weeks contract is vital to manage your maintenance fees better.
Consequences of Defaulting on Maintenance Fees
If you neglect to pay your fees, you will receive a penalty. So, if you suddenly pause your payments, the timeshare company will do whatever it takes to collect your dues, including making phone calls and sending letters.
If, after several attempts to contact you, you still have not paid, the situation can escalate to foreclosure on the property, leading to possible legal action against you. In addition, pausing maintenance fees can significantly hurt your credit score, affecting future purchases. Further, floating weeks can require different fees depending on the resort and unit. Reading the terms and conditions of your points or floating weeks contract is essential for effectively managing your maintenance fees.
So, what do you do if you can no longer pay your maintenance fees? Continue reading to find out more!
Options for Unaffordable Timeshare Maintenance Fees
If you’re struggling to pay maintenance fees, you have options! The first step in attempting to cancel your maintenance fees legally is to contact your timeshare developer. You can let your developer know you’re having trouble paying them, and need an “exit” solution. If they can’t offer you a buy-back solution, you can work with a reputable timeshare resale company to help sell or rent out your vacation ownership.
If you no longer want vacation ownership status, you can advertise your timeshare on the resale market. Or, if you need help covering maintenance fees for the time being, you can advertise your property for rent.
Also, before making any decisions, you’ll need to review your contract and understand the terms and conditions of your maintenance fees.
How To Get Out of Yearly Maintenance Fees
You should consider selling or renting your timeshare to avoid annual maintenance fees. If you choose to sell, these fees will be transferred to the new owner once all paperwork is signed and the property is closed. Aside from selling, there are no options for owners to opt out of paying their annual dues out of the blue. Timeshare maintenance fees are essential to vacation ownership and help cover the cost of resort maintenance.
If you’d like to sell or rent out your timeshare, we at BuyAtimeshare.com can help! Contact us today to start the process!
