When selling timeshares, most developers don’t talk about the maintenance fees owners are assessed. These fees are essential to the running of the resort, and owners typically find them worth the cost. However, they don’t appreciate not being informed about them before making the purchase. What should every person know about timeshare maintenance fees, whether they own a unit or are thinking of purchasing one?
What are Maintenance Fees?
Timeshare resorts require upkeep, just as all properties do. Maintenance fees are required to pay for this upkeep, and the fees fall on the owners. They are also used to pay for renovations and the wages of employees who complete these tasks. Most owners happily pay these fees once they understand what they are for. However, they become angry if the developer does not share these fees at the time of purchase. This anger may lead them to question how to get out of timeshare contract.
Average Maintenance Fees
Maintenance fees vary by the resort and unit, but all owners remain responsible for paying them. The developer calculates maintenance fees for a year and divides this cost among all timeshare owners, so each owner only pays a small portion. The average maintenance fee now for a timeshare unit is $1,120.
When Must These Fees Be Paid?
Each developer determines when timeshare maintenance fees are due. Some resorts send an annual bill, but other developers choose to collect the funds monthly or quarterly. Owners must know when the fees are due and pay them promptly. This information is found in the purchase documents.
Non-Payment of Maintenance Fees
When a person fails to pay maintenance fees, they default on ownership. Doing so hurts their credit, as it is similar to foreclosing on a home. Don’t follow the recommendation of a timeshare company employee when they recommend these fees not be paid. Once the payment is missed, the foreclosure proceedings begin.
If the fees cannot be paid for some reason, speak to the timeshare developer. They may be able to help come up with a solution. Without this solution, they will have to go through the foreclosure process, which costs them time and money.
Lack of Use
An owner might find they cannot take advantage of their week for some reason. They can rent the timeshare to help offset their expenses if the contract allows them to do so. In addition, they may be able to sell the timeshare. This option should always be considered before defaulting on the purchase agreement, which has a detrimental effect on the owner’s credit score.
If the problem is with the resort, learn whether the week at the resort can be traded for a week at another location. This may be the same week or a different one, and there might be a fee involved when making this switch. It’s an option that should be considered while deciding whether to sell the unit or take other action.
Always pay timeshare maintenance fees, even if other options are being researched. Non-payment of these fees comes with negative consequences that may impact every aspect of the owner’s life. The easiest way to get out of these fees is to sell the unit. While the owner might lose some money on the sale, this is better than a foreclosure showing up on their credit. Learn more today about these options to determine which is right for your unique situation.