When buying a timeshare, it’s essential to factor maintenance fees into the equation. But what are they? In this blog, we’ll tell you everything you need to know, including what timeshare maintenance fees cover, how much they cost, and how you can manage them as part of your vacation ownership budget. We’ll also tell you how Timeshare Broker Associates can help you walk away from maintenance fees forever by selling your timeshare on the resale market. So, join us as we reveal the costs and considerations of timeshare maintenance fees!
What Are Timeshare Maintenance Fees?
Timeshare maintenance fees are mandatory fees every timeshare owner must pay as part of their timeshare ownership. They are split between all owners of the timeshare. These fees are typically billed annually, although some resorts bill them semi-annually, quarterly, or monthly. Maintenance fees cover things like property upkeep, renovations, new amenities, and staff pay. Some resorts also use them to set aside emergency funds in case of natural disasters.
Just like a car or other luxury product, timeshares require regular upkeep to keep them performing at their best. Similarly, maintenance fees ensure the timeshare resort can provide vacationers with a great experience year after year.
What’s the Difference Between Annual Fees and Annual Dues?
People often use the terms “annual maintenance fees” and “annual dues” interchangeably. However, there are some key differences to be aware of. Yearly maintenance fees are fees you pay to help the resort maintain and renovate the timeshare property. Annual dues, on the other hand, typically encompass these expenses, but they also refer to fees paid to the wider vacation club. These dues tend to cover perks of your membership such as access to resorts and amenities beyond your home resort.
How Much Does the Average Annual Maintenance Fee Cost?
So, now you know what timeshare maintenance fees cover. But how much do they cost? Well, the average timeshare maintenance fee can vary depending on things like resort location, unit type, and level of service. However, according to the American Resort Development Association (ARDA), the average maintenance fee cost in 2023 was $1,260 a year, an 8% increase over the previous year.
Admittedly, that’s a big jump, as the average year-over-year increase in the cost of maintenance fees is only 2%. In general, however, rising interest rates are the norm. Why? Well, the older a resort gets, the more upkeep it needs. Moreover, maintenance fees tend to rise in accordance with inflation rates and utility costs. Simply put, as the price of maintaining properties and paying staff goes up, so too does the cost of maintenance fees.
When Are Timeshare Maintenance Fees Due?
The billing cycle for timeshare maintenance fees varies by timeshare company and resort. Generally speaking, though, timeshare maintenance fees are billed annually. They are typically sent out in November and are due by January 1st. In some cases, however, maintenance fees may be billed semi-annually, quarterly, or monthly. Be sure to check your timeshare agreement so you aren’t caught off guard by your bill!
What Happens if You Don’t Pay Timeshare Maintenance Fees?
In short, you should never just stop paying your maintenance fees. Doing so can negatively impact your credit score and cause you to default on your ownership. If you’re having trouble affording your maintenance fees, however, you do have options.
Tips for Managing Your Maintenance Fees
If you’re struggling to pay maintenance fees, there may be ways you can lower them. The first strategy is to negotiate with the timeshare management company. If you think they’re overcharging you for their services, you may be able to negotiate for lower fees. Another strategy is to join your timeshare’s HOA board. As a member of the board, you can lobby for changes in budget allocation and resort management that can potentially lower fees for yourself and everyone else.
If you can’t lower your timeshare maintenance fees, consider taking advantage of an exchange program. Most reputable resorts have affiliations with an exchange platform like RCI or Interval International. If you can’t afford the maintenance fees at your home resort, try exchanging for a resort with lower fees. Additionally, you might consider renting out your timeshare on the resale market while you aren’t using it. This can be a great source of passive income you can put towards your maintenance fees.
Buying a Timeshare on the Resale Market
When it comes to timeshare ownership, timeshare maintenance fees are a fact of life. These ongoing financial obligations are a requirement for every owner, and resorts are strict about collecting them. This is true regardless of whether you buy a timeshare on the resale market or directly from the resort. Moreover, the average cost of annual maintenance fees is the same for retail and resale timeshares.
While maintenance fees cost the same for timeshare resales, buying your timeshare on the resale market can save you thousands of dollars on your initial purchase price. This is a great strategy for managing the cost of your maintenance fees, as you can put these savings towards paying them every year.
Walking Away From Timeshare Maintenace Fees
Contact Your Resort
If all else fails and you’re still having trouble affording your timeshare maintenance fees, contact your resort. Many timeshare resorts offer services to help struggling owners, such as in-house rental programs and referrals to reputable timeshare resale companies.
Sell Your Timeshare on the Resale Market
Need to sell your timeshare? Timeshare Broker Associates can help! As a fully licensed real estate brokerage, we can assist you through every step of your sale. And as an ARDA-accredited resale company with an A+ rating from the BBB, we’re a name you can trust. Click the link below to learn more. Or, give us a call at (407) 917-8432.
