As we approach the end of the year, most people are budgeting for the additional costs associated with the holiday season. If you own a timeshare, you most likely need to account for another expenditure that is coming due—your annual timeshare maintenance fees. These fees are unavoidable, and they are one of the reasons why many unhappy timeshare owners consider their purchase to be a financial burden rather than a smart way to enjoy a luxury vacation.
Unfortunately, most people aren’t given a clear explanation of what these fees entail and how they’re structured during the timeshare sales pitch. This can leave you paying significantly more each year for your unit than you had expected at the time of purchase. And that’s why it’s important to understand the impact these timeshare maintenance fees have on your investment.
All timeshares require their owners to pay maintenance fees. These are generally assessed annually, although in some situations your timeshare may spread the fees out into monthly or quarterly payments. Your maintenance fees are non-negotiable and must be paid every year, regardless of whether you use the property or not.
The stated purpose of timeshare maintenance fees is to cover the ongoing costs of running and maintaining the resort. This may include:
In some cases, your maintenance fees may also cover damage caused by natural disasters. However, these incidents are often considered beyond the scope of your annual maintenance fees. If you own a timeshare in a tropical location, you may find that you’re hit with additional unexpected assessment fees to cover damage caused during hurricane season.
Timeshare maintenance fees vary based on:
According to the American Resort Development Association (ARDA), the average maintenance fee is $1,000. However, it’s important to understand that your maintenance fees aren’t locked in at their current rate. They typically rise each year.
ARDA’s annual State of the Timeshare Industry report has shown a roughly 4% increase in maintenance fees every year. This will equate to a significant rise in cost over a 10-20-year period. As a result, these maintenance fees will eventually make the cost of your timeshare prohibitively expensive. If the trend of a 4% annual increase continues, your current $1,000 maintenance fee will be $1,480 ten years from now. This equates to an almost 50% rise in these fees over the next decade.
In addition, the cost of your maintenance fees may vary wildly depending on whether they’re established by the developer or the HOA. Often, developers may temporarily subsidize the maintenance fees to spur initial sales of the property. However, after this initial sales push has ended and the fees become governed by the HOA; you may find that they increase dramatically without any warning.
As your timeshare maintenance fees continue to rise, they will impact the value of your purchase. You may find that you can no longer fit these fees into your budget. Unfortunately, you don’t have much recourse to get out of paying them. You’re saddled with these annual payments for the lifetime of your timeshare ownership.
If you stop paying your timeshare maintenance fees, it may result in the following consequences:
If you’re tired of the financial burdens associated with rising maintenance fees, the only way to alleviate this expense is to get rid of your timeshare. At Timeshare Termination Team, we’re here to help.
We’re the only timeshare consumer advocacy firm in the nation to offer a You First Approach™ that is guaranteed to get you out of your timeshare permanently. This approach focuses on your unique needs and provides you with:
Getting out of a timeshare is a complicated process that involves a variety of legal hurdles. Our team of experts has helped thousands of individuals like yourself escape the financial burdens of a timeshare. We understand that every situation is unique, and we’ll work with you to develop a customized strategy that will be safe, legally binding and permanent. Our team will handle all communications and negotiations with the resort on your behalf, and we’ll keep you apprised of the progress every step of the way.
Timeshare Termination Team can help you take back control of your life and eliminate the financial burdens associated with timeshare ownership. Please contact us to learn about your options during a scheduled free consultation.
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