If you own a timeshare, you likely know by now that you need to pay an annual fee to continue using it. This is actually referred to as an annual maintenance fee by those familiar with timeshares or the timeshare industry.
Most of the time this maintenance related fee comes due in the month of January. Of course this is not the best timing for most folks, who are just through the added expenses and hectic frenzy associated with the holidays.
What usually occurs is that as the dust sets in and January starts coming to a close, the dreaded bill from the timeshare reenters the mind. And naturally, the decision must be made once again whether it is even a bill worth paying.
Paying for anything, whether it be groceries or gasoline or a new pair of shoes, one usually does a quick mental breakdown of whether the value exchange makes sense. Meaning, are you getting the correct amount of value or benefit for the price you are paying.
If you went to the grocery store and picked out a box of your favorite cereal only to see the price is now $30 per box, as opposed to the original value exchanged rate of $5 per box. In all but the rarest instances you will give up that favorite cereal in favor of a new fairly priced brand.
So back into the context of timeshare maintenance fees, the question is …
What Exactly Am I Getting In Return for the Amount Paid to the Resort in Maintenance Fees Alone.
So how often are you using your timeshare in exchange for the $1,000 per year in maintenance fees. Are you first even finding availability? The lack of availability when trying to book a room is a complaint we hear over and over when speaking with clients.
Let’s say your timeshare is available consistently for the times you want it. The next question is are the accommodations still consistent with a place I want to stay at every year. Some timeshares are great about upkeep, while other resorts let their properties age and decay for reasons that are purely driven by profits.
After all, you are locked into paying the maintenance fees for life which is a pretty long commitment, especially when it stacks up against timeshares having no real obligation to keep a property up. during that time And why would they when they have people paying them year after year who have very few options for getting out of the maintenance fees and timeshare contract.
What happens if you don’t pay your timeshare maintenance fees?
If you miss paying your annual maintenance fee, this can have serious repercussions. This is because your maintenance fee is used to meet the day-to-day operation of the resort. When you fail or miss to pay this fee, this leads to collection efforts from the management company.
As per the SFGate, these consequences generally come up in the following ways:
- ‘Demand’ or ‘Past-Due’ letters
- Harassment by various collection agencies
- Legal actions in case of failure to pay
Moreover, further consequences depend on how long you delay in paying your fees. The consequences may even hurt your credit score. All of these consequences are intended to goad you into paying your maintenance fee on time.
As per the American Resort and Development Association – ARDA;
In 2015, the average timeshare maintenance fee was $920/year. Assume this average fee being paid over the course of 20 years and that would amount to almost $18,500. The estimate does not take into account the fact that the fee rises every year.
This still doesn’t include the original purchase price of the timeshare. According to the ARDA, the sale price (average interval) was around $22,240 in the year 2015. When you add up the average maintenance fee and average interval sale price over a period of 20 years, it comes out to roughly $40,000. Needless to say, this is the amount you end up handing over in fees to the timeshare resort.
How to get rid of maintenance fees forever?
As a timeshare owner, you are responsible to pay your annual maintenance fee, but you can avoid paying this in the future by getting out of this timeshare ownership completely. Once you successfully shake off your timeshare contract, you obviously don’t need to fulfill the responsibilities that come with the ownership of that timeshare.
Before you decide to get out of your timeshare contract and maintenance fees, you need to get the right advice to know all your possible options. Get your ownership properly reviewed and don’t make any impulsive decisions about your timeshare ownership before speaking with one of our expert timeshare cancellation advisers.
Are You Ready to Get Out of Your Timeshare?
Schedule a free consultation with one of our timeshare cancellation experts today to get started.