What Are Timeshare Maintenance Fees?
Quite a few people ask us what are timeshare maintenance fees? Let’s clear that up for you.
In a nutshell, maintenance fees are collected by the timeshare company to maintain the resort property, pay insurance, utilities, purchase appliances and furniture, refurbishing the property, and various taxes.
Maintenance fees vary from the resorts on offer, they will also differ depending on the type and size of the property that has been purchased.
Resort developers may temporarily subsidise these maintenance fees as an extra incentive to promote buyers to act quickly. This normally occurs during an active sales period.
Another common FAQ surrounding timeshare maintenance fees is: Why do maintenance fees keep increasing?
It’s worth noting that the maintenance fee clause in a timeshare agreement is in the small print, if you’ve missed this part, you have signed a contract agreeing to the timeshare company/resort to change the maintenance fees.
It has been calculated that timeshare maintenance fees tend to double every decade. For example, if your maintenance fees were £300 per annum in 2006, they are likely to be around £600 per annum in 2016.
As you can see, the maintenance fees over a long term contract can lead to a staggering amount of money.
Another thing that’s worth keeping in mind with regards to maintenance fees is special assessment fees. These are added on top of maintenance fees to cover unexpected expenses. For example, a resort in North America or the Caribbean may experience a severe storm damage during hurricane season that is not completely covered by insurance. Special assessment fees, therefore can also include one-time expenses such as a major improvement (e.g. new outdoor facilities). Even if you do not intend to use that specific facility, you will be responsible for paying the special assessment fee.
A timeshare tip we recommend is for those looking to buy a timeshare should make sure to take maintenance fees into account when budgeting.
If you’re a timeshare owner and have concerns about rising maintenance costs or feel like you’ve been overcharged on a specific maintenance fee please do not hesitate to get in touch or alternatively, feel free to request a brochure. You can also read our latest posts on all things timeshare related.