The COVID-19 pandemic has impacted many areas of our lives, including our travel and vacation plans. If you own a timeshare, you were probably unable to use it during 2020 and may face challenges scheduling a trip in 2021, depending on how long the pandemic continues to affect our lives. Ideally, timeshare companies would be doing everything possible to address the concerns of their owners during a challenging financial climate. Unfortunately, this industry has never been known to place the needs and experiences of their vacation owners above their profits.
As we move toward the end of the year, you will most likely be receiving your invoice for 2021 timeshare maintenance fees soon. These fees will not be waived due to COVID-19, even if you’re unable to schedule a vacation during the pandemic. In addition, it’s possible that you’ll receive a larger maintenance fee hike than normal as timeshare companies try to limit the financial losses they’re experiencing from the pandemic.
The stated reason for charging timeshare maintenance fees is to cover the necessary upkeep of the resort. This is one of the purposes for which these fees are used. Without them, it’s likely that the property would fall into a state of disarray, making your vacation far less enjoyable.
Some of the items your maintenance fees will cover include:
In some instances, these costs may rise due to the COVID-19 pandemic. For example, cleaning protocols are much stricter than in the past, which may result in an increase to the costs of these services. In addition, some timeshare resorts took advantage of the shutdown to perform extensive renovations to their property. The cost of these renovations would be passed along to the owners through an increase in maintenance fees.
However, we encourage you to look carefully at the cost of your 2021 timeshare maintenance fees and compare them to the fees assessed in recent years. If you see they’ve increased by a larger percentage than they normally do, you may want to reach out to the developer or HOA to find out exactly what your money is being allocated toward. In many instances, you may find that not all of it will be used to address repairs and upkeep.
Often, timeshare companies use maintenance fees as a way to create revenue and improve their profitability. This is accomplished by charging a larger fee than is necessary to perform all required maintenance and upkeep.
Let’s look at the math surrounding timeshare maintenance fees:
Does it really cost upwards of $3.3 million a year to staff and maintain these resorts? If not, the remainder of this money reflects profit for the developer or HOA. In a year when a global health pandemic has devastated the timeshare industry, it’s possible that your resort will seek to recoup some of their losses by significantly increasing your annual maintenance fees or by levying an additional assessment charge to cover undisclosed expenses.
These increased rates are hard enough to fit into your budget when you’re using your timeshare. If you’re unable to book a trip in 2021 due to COVID-19, this will represent an extremely large expense without receiving any benefit for your money.
COVID-19 will undoubtedly change the way many people take vacations moving forward. As a result, you may find that your timeshare no longer meets your needs. You may also decide that annual maintenance fees that consistently spiral out of control are no longer financially feasible for you and your family. If you’re ready to get out of your timeshare, we can help.
At Timeshare Termination Team, we take a You First Approach™ that is guaranteed to help you legally, safely and permanently get out of your timeshare commitment. We understand that every timeshare ownership situation is unique.
The terms of your agreement and whether you still owe money on the mortgage will impact the ideal strategy to address the needs of your family. Our team of legal experts will work with you identify the right exit solution for you.
Our goal is to help you take back control and achieve freedom from the financial burdens associated with timeshare ownership. If you’re ready to start enjoying vacations on your own terms, or if you’re no longer in a financial position to take vacations due to the pandemic, Timeshare Termination Team can help. You shouldn’t be tied to the financial commitments associated with your timeshare if you no longer feel it is meeting your needs. Let us help you get the freedom you deserve.
Contact Timeshare Termination Team to schedule a free consultation. We’ll discuss your options with you and start you on the path toward a timeshare exit strategy.
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