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Timeshare Maintenance Fees FAQs

Timeshare maintenance fees FAQs

July 21, 2018 – by Primo Management Group

Timeshare maintenance fees FAQs

Timeshare maintenance fees can be confusing, so we wanted to provide you with the answers to the most frequently asked questions we hear.

The timeshare industry would like you to think timeshare maintenance fees are a minor issue in the timeshare big picture. They want you to focus on all the benefits of timeshare ownership. But for many owners, fees are the whole story. Based on our experience, we’ve learned that approximately half of all people seeking to sell their timeshare do so because of maintenance fees. 

Like so many aspects of timeshares, the realities of timeshare maintenance fees will vary widely across the industry. Here are some general answers to your timeshare questions.

What Are Timeshare Maintenance Fees?

According to the American Resort Development Association (ARDA), timeshare maintenance fees are fees “[T]hat timeshare owners are required to pay, usually on an annual basis, to cover the costs of running the resort, including daily management, upkeep, and improvements.” (Source: ARDA)

These fees might cover a wide variety of items. Typical inclusions are housekeeping, landscaping, general maintenance and upkeep to your unit, and repairs and upgrades to the resort itself. The exact uses of fees will vary by location.

Fees are typically calculated on an annual basis. However, they may be due monthly, quarterly, or annually, depending on the agreement. When considering a timeshare, make sure your payment schedule suits your financial circumstances.

Will Fees Go Up Over Time?

Yes. They will almost absolutely go up every year.

Timeshare maintenance fees have been steadily increasing since the advent of timeshares. Although the exact amount of increase varies unpredictably from year to year and resort to resort, the increases themselves are a fact of timeshare life.

Maintenance fees increased from an average annual fee of $820 to $980 between 2012 and 2017. That’s a 16% increase within a five year period. Averages will surely top $1000 per year soon with no end in sight. (Source: ARDA)

When you purchase a timeshare contract today, it’s vital to take rising fees into account. Since you can’t predict with any certainty how fast fees for your timeshare will increase, what can you do? At a minimum, you can request to see a history of fees from the resort. That will give you a sense of how those fees have behaved in the recent past. If you don’t foresee your own income rising to keep pace, you should probably reevaluate if ownership is right for you.

Who Pays Maintenance Fees?

All owners are responsible for timeshare maintenance fees. However, other guests of the resort do not pay these fees. This means that in some cases, it’s cheaper to rent rather than to own. This is why we always recommend that consumers investigate timeshare rental before making the decision to buy.

What Happens If I Can’t Pay My Fees?

Just like any other financial obligation, there are consequences when you fail to pay. Timeshare maintenance fees are no different. Not paying fees is considered a breach of contract and you can expect your resort or developer to respond.

First, if you aren’t current on your fees, you won’t be able to use your timeshare weeks or timeshare points. You also won’t be able to rent out your timeshare or exchange your points. There will also likely be late fees and interest fees associated with not paying.

If fees continue to go unpaid, your resort will seek to recover these fees from you. Initially they will send letters and call but eventually, they may report you to a third-party collection agency, and then they will report you to the three major credit agencies. Obviously, this can have a lasting impact on your credit score.

Finally, the resort may initiate additional and more extreme actions. These actions will vary by the state where you own but could include foreclosure. Proceedings take a long time and are quite expensive. And you may be on the hook for paying those expenses.

You may also want to consider that if you fail to pay your fees, the other owners may have to make up the difference. Less lavish, older resorts often have smaller reserves and owners at these resorts are much more likely to find themselves covering expenses for those who cannot or do not pay.

I Can’t Pay My Fees. What Now?

If you can’t pay your fees and are looking for a way out, contact us today for a free consultation. We help owners like you exit timeshares safely, legally, and ethically.

 

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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.