What exactly do you pay for?
Although timeshares holiday ownership products, holiday-related items or memberships in vacation clubs shouldn’t be considered as a financial investment the concept of conserving money is fairly simple.
After the initial investment to join a resort or lounge, vacation expenses for accommodation should reduce with the savings that accumulate over the course of.
In the ideal scenario, how much a timeshare can cost you is contingent on the standard of the accommodation and resort as well as the season and of course the annual maintenance cost you’ll have to pay as an owner. What exactly do maintenance fees include?
The first thing to note is that the expense of running the resort makes up a significant portion of the costs. The staff comprised of receptionists cleaners, gardeners, security staff as well as administrators and managers are essential to warrant that the resort runs efficiently and typically account for up 40 percent to 60% of a cost of a resort.
There are other expenses that are related to the operating expenses of the resort, like broadband, insurance, heating electrical and air conditioning, as well as taxes and water, as well as TV.
All these expenses must be considered prior to general maintenance and renovation of the property which is frequently in need of upgrading because of wear and tear caused by the constant usage.
The majority of timeshare contracts contain provisions for maintenance, management, or other fees that have to be paid for throughout the entire duration in the term of contract. The problem lies in the fact that such fees may be altered completely according to the preferences of the timeshare resort/group (you’ll see this clause in the tiny print).
What ever kind of timeshare contract you have, maintenance and management fees are usually imposed in the assumption that all “members” of a particular resort or scheme are contributing to the ongoing upkeep and care for the facility.
What’s wrong?
The issue is that over time, the majority of timeshare resorts couldn’t resist the fact that they can rise the price of their fees without revealing the actual cost that the hotel. Because of this, they are able to increase management fees for customers who were bound to a long-term contract and were required to pay for the charges without asking. In addition, failing to pay maintenance charges could result in management firms employing aggressive and threatening ways to collect unpaid payment and even turning the debt to debt collection agencies. It is therefore dangerous to stop paying the fees and not comply with these demands without consulting or security from an competent company.
Certain resorts which experienced an initial boom but then noticed an boost in sales but slowed and then turned to maintenance fees as their main source of income. Even if the customers do not make use of the timeshare, they’re liable to pay “maintenance fees”. One timeshare owner purchased a timeshare in 1997, and was required to pay the initial cost of PS175 annually. After a few upgrades their annual maintenance fees were increased to PS1,669.
It is normal to expect that there are management fees because the resort can’t operate and maintain by itself. It is also reasonable to expect that these charges will increase in line with inflation rates. But, what doesn’t seem right is when consumers are being cheated through the charging of maintenance charges which are much higher than the anticipated rate of inflation and can result in huge financial burdens for the majority of people.
Resorts are aware that getting the right buyer for their timeshare is an issue, even if it is all possible. And even if people do accept the challenge, they’ll need to pay fees until such time when a new buyer is found and able to be able to take over the payment of charges.
If you’ve experienced excessive increase in your maintenance costs talk to one of our knowledgeable and friendly experts to determine if this can be proven.
