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Maintenance Fees: What You Need To Know

Maintenance fees

January 16, 2019 – by Primo Management Group

Maintenance fees

Thinking about a timeshare? Learn the truth about maintenance fees before you buy.

Although timeshare contracts vary greatly from one to another, one thing is certain: maintenance fees. Maintenance fees are the annual fees all timeshare owners are contractually bound to pay for the duration of their contract. Since everyone pays them, you might think they’re routine and nothing to worry about. However, there are some dark truths that you should know about before you sign that contract.

Maintenance Fees Are Out of Your Control

Maintenance fees typically cover general upkeep of the resort as well as minor repairs. And most resorts also use them to build up reserve funds in case of unexpected expenses or damages. Other uses include things like payroll or administrative overhead. In many ways, maintenance fees are similar to what you would pay to maintain your home. However, while you can do your own budgeting and decision making for your own home, your timeshare maintenance fees are determined by the resort or HOA. And while you hope they are making good decisions about where to spend your money, they still make the decisions. Unfortunately, they are under no obligation to take your needs into account when they levy fees.

You Can’t Predict Your Fees

You can count on maintenance fees increasing over time. We guess it’s nice to be able to count on something. Unfortunately, you can’t predict the amount of the increases and they can vary greatly from year to year. According to the ARDA, maintenance fees in 2005 averaged $471 per year. In 2017, they averaged $980 per year. So, fees doubled in 12 years—Ouch! Plus, the rate of increase was erratic. The increase between 2016 and 2017 was relatively flat at 0.9%. However, 2005 to 2006 saw at 17.8% increase. We doubt owners saw their incomes increase that quickly!

So how can you take control of your finances? You can request a history of fees from your HOA to help you get a sense of what has happened in the past. However, that’s no guarantee of future costs. And although it would be great if your contract protected you, it most likely does not. When you signed your contract, you signed up for all the fees as well.

You MUST Pay

But what if you see at 17% increase that you can’t afford? We wish we had better news but, unfortunately, there isn’t much you can do. According to your contract, must pay your fees, no matter how much they are, no matter what your financial situation might be. You can contact your resort or HOA to see if they will work with you on alternative payment plans. However, your timeshare access will probably be limited until you catch up. If you don’t pay, your resort or HOA will probably take steps to try to collect the fees from you. And some will report you to the credit bureaus, which will result in damage to your credit score. Continued non-payment may result in foreclosure, which can be very stressful.

Maintenance Fees Are Forever

What if you can’t use your timeshare this year because of scheduling? Or worse, what if your resort is damaged in a hurricane or other disaster and becomes uninhabitable for an extended period of time? Surely you won’t have to pay fees for something you can’t use! Unfortunately, you still have to pay your fees even if you don’t use or can’t use your timeshare. And in the case of damage, you may also be looking at a special assessment to cover repairs.

Did the truth about timeshare maintenance fees come too late for you? We can help. Contact us for a free consultation to see how we can help you get out of your timeshare contract legally and forever.

(Image Source: Pixabay)

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Frequently Asked Questions ?

How does PMG get me out of my timeshare contract?

PMG is not a resale, transfer, or donation company. We are consumer advocates—we help to negotiate the release of your timeshare contract obligation. We do not buy, sell, or rent your timeshare. Simply put, we help you to get out of your timeshare contract forever.

How long does the process usually take?

Usually less than 12 months, but it all depends on your situation. If your timeshare is free and clear with no mortgage, then the process may only take 3-9 months.

Speak to your advisor about the time, and what delays the resorts have put into place to prevent timeshare owners from departing their ownership. If you have a mortgage or past due maintenance fee, the process takes more time.

How much is my timeshare worth?

This is probably going to hurt, but whether you paid $5,000 or $50,000 for your timeshare, the IRS values all timeshares as worthless investments. In addition, that timeshare would have negative value due to the annual maintenance fee bill which compounds year after year. That is until PMG helps you cancel your timeshare.

Can I use your service if I still have a balance owed on my mortgage?

Yes. Whether you bought your timeshare 20 days ago or 20 years ago, PMG has a solution for you and is here to help.

Will my name be off the timeshare?

Yes! Permanently! GUARANTEED!

In addition to getting me out of my timeshare, can you recover the money I’ve already spent on mortgage payments and maintenance fees?

While we are able to recover money in rare cases, beware of any timeshare cancellation company that entices you with the promise of fund recovery. The truth is, timeshares are loath to give back the money they’ve already taken.

Are your consumer advocates really “consumer advocates”, or is that just a fancy word for salesperson?

Because most of our clients have had their trust betrayed by timeshare salespeople, we understand how some consumers can become a bit jaded. When you call us for a consultation, that’s exactly what you get, a consultation. At PMG, our job is not to sell you; our job is to help you get out of your timeshare. Which is why we have numerous 5-star reviews and an “A” (excellent) rating from the BCA.

Why should I choose PMG to get me out of my timeshare?

We pride ourselves on providing our customers with the best customer service in the industry. When you contact our company, you speak to a live person, not an automated system or voicemail. We go above and beyond for our customers by helping you to protect your credit and even repair your credit if needed. We offer a 100% money back guarantee, and we can provide documented proof of our success in helping customers just like you.

What happens after I sign up with you? Will I be apprised of your progress?

At PMG, we pride ourselves on our hands-on, boutique-style customer service, so every new client is assigned a case manager whose job is to keep you in the loop throughout the entire cancellation process. Your case manager is always just a phone call away.

How much is your fee?

Not all timeshare experiences are created equal. Some are more complicated than others, and every situation is different. That’s why our trained timeshare elimination consultants will ask you a series of questions designed to determine exactly what needs to be done to terminate your timeshare, how long it will take, and how they can best advocate for you. We will always seek the most cost-effective route for you.

What if I still have more questions?

Canceling a timeshare contract is not a cookie cutter process. With each situation being unique, once you complete the form below an experienced consumer advocate will call you today to discuss your options.