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Timeshare Dangers on The Rise?

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July 5, 2018 – by Primo Management Group

timeshare dangers image

With more timeshares than ever before, are timeshare dangers on the rise?

The American Resort Development Association released its annual study on the timeshare industry in June 2018. The study analyzes a wide variety of indicators. Results reveal the industry’s eight straight year of growth in almost all categories. We worry that more timeshares mean more timeshare dangers.

Survey Says

The survey breaks down the basics.

Sales volume was $9.6 billion. This shows an almost 4% increase over 2016’s $9.2 billion.

The average timeshare occupancy rate was 81%—higher than the average hotel occupancy of 65.9%.

Revenue from timeshare rental was $2.3 billion, a 20% increase over 2016.

The United States has 1,570 timeshare resorts with around 205,100 units.

Average annual maintenance fees increased 1% to $980.

Island resorts had the highest occupancy at 90%.

Beach resorts were the most common with timeshares occupying 34% of all resorts.

So…what does all of this mean for consumers?

Timeshare Scams

First, the expansion of the timeshare industry means more sales reps and the potential for more scams and high-pressure sales tactics. In 2017, the survey reports more than 1,500 resorts offering timeshares. Just imagine the number of reps needed for that many locations! You’ll need to know how to protect yourself.

Just say no to free gifts. In the timeshare industry, there’s no such thing as free. Everything comes with a price. Repeat after us: Free gourmet dinner? No. Free rental car? No. Free sunset cruise? No. Timeshare reps are notorious for using “free” gifts to get you in the door. Of course, then the door closes behind you and the pitch begins.

The pitch itself varies from rep to rep, resort to resort, but we see many key features that hurt consumers. A relentless focus on the positive is a hallmark of timeshare sales pitches. Of course, that’s a common sales tactic in many industries. However, what timeshare reps leave out or gloss over has a major impact on consumers. Don’t expect a pitch to include much about how a timeshare does not appreciate in value over time. Or about the difficulty of exiting a timeshare agreement. Or about how the contract can extend beyond death and become the responsibility of the consumer’s heirs.

And they won’t take no for an answer. We’ve heard so many stories about people who’ve said yes to a pitch because they just couldn’t get out of the room! The increase in consumer awareness around timeshares pushes reps to be more creative. In fact, we get plenty of calls from people who thought they knew better. Find out more here.

Scheduling Difficulties

The study reports island resorts at 90% occupancy. That seems like a good thing, right? No timeshare dangers lurking? However, consumers may find themselves out of luck scheduling their week. Both fixed week and floating week arrangements can be affected by high occupancy.

Floating week scheduling is often challenging. Meaning, with occupancy rates that high, consumers will almost certainly need to schedule far in advance. And of course, floating week scheduling is based on availability. If you do the math, 90% occupancy means 10% vacancy at island resorts. There’s no guarantee you’ll be able to access your timeshare during a week that works for you. How many years could that be your reality?

Fixed week arrangements are more stable. However, those who find themselves unable to make their week will face difficulty switching. This is a common issue for fixed week timeshares but is made more complex with high occupancy rates.

Maintenance Fee Increases

As usual, we see increases in maintenance fees. This follows the pattern timeshare owners have come to expect. Maintenance fees increase each year. The amount of increase is unpredictable. Although this year’s average increase is modest, consumers still find themselves paying more this year than last year. And individual increases will vary. Some timeshare owners certainly wrote much bigger checks.

Maintenance fees typically cover a variety of routine expenses. These expenses can include housekeeping, landscaping, utilities such as water and electricity, repairs, and taxes. But the maintenance fees don’t reflect additional assessments resulting from larger upgrades or unexpected major damages.

The report focuses on the modest increase in fees from 2016 to 2017. While it’s true that fees remained relatively flat, the average fee was $980 in 2017. The average timeshare owner pays almost $1,000 in maintenance fees every year. Let that sink in. A thousand bucks for something they only use one week a year. If maintenance fees on houses were that high, most people would be looking for a new handyman! That’s why the maintenance fees are one of the most common reasons consumers want out of their timeshares.

With more timeshares out there, consumers must continue to be careful. Have you fallen victim to timeshare dangers and are looking to get out? We’re here to help.

 

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Relieve Yourself of the Unwanted Timeshare Burden

Your information is 100% secure and encrypted. We will never sell or share your information with anyone.

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. Let us help you. 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, the resorts are loath to give back the money they’ve already taken for timeshares.

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 go above and beyond for our customers by helping to protect you, and have the best success rate in the industry, rated 5-stars by clients. 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 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 will work with our expert, experienced team whose job is to keep you in the loop throughout the entire cancellation process. We are 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.