Maintenance fees are an often overlooked aspect when signing on the dotted line of a timeshare contract. Timeshare Maintenance Fees are in place to cover the everyday costs of operating the resort where you bought your timeshare.
These fees are split up amongst all of the owners of that timeshare resort. It is important for the consumer to not only fully understand, but also fully consider, the cost of maintenance fees when first deciding to purchase a timeshare.
Just as with home ownership, there is a cost to keep a timeshare property in shape. General upkeep, utilities, and resort staffing are all necessary to keep a timeshare property in good condition and attractive to both current owners and prospective buyers.
There is also a reserve held by the resort from the maintenance fees you pay that is used for upgrades in furniture or property renovations. The maintenance fees you pay on your timeshare are usually charged on an annual basis, but can also be due on a monthly basis.
Rising Maintenance Fees
Maintenance fees come in all shapes and sizes, ranging from a few hundred per year all the way up to several thousands of dollars per year. The location of the timeshare resort and the amenities at the timeshare resort are among the factors that will determine the cost of your maintenance fees.
What many timeshare buyers fall to consider when analyzing the cost of their maintenance fees is that in almost all cases these fees are not fixed. That is, they inevitably are going to rise over time.
One thing to remember is that maintenance fees are not locked in at the same amount they were at the time when you signed the contract. Industry experts say that maintenance fees rise 9% to 11% per year on average.
This means that your initial maintenance fees will likely double within 5 years and there is usually no cap in your contract on how high the resort can increase your maintenance fees.
The Decision To Stop Paying Maintenance Fees
The decision to stop paying maintenance fees is one many timeshare owners come to face. Unfortunately, when you originally signed the purchase contract for your timeshare, the agreement states that you would pay the maintenance fees for perpetuity, which means forever.
The decision to stop paying, however, carries with it some implications. First and foremost, the resort will most assuredly pursue collection efforts. This can both impact your credit and also lead you to civil court if the timeshare resort takes legal action. This can also lead to foreclosure on your timeshare, which will most likely further damage your credit.
You Have Rights and Options
You may not be aware that the government has recently regulated the timeshare industry and that you have rights and options you may not be aware of. Due to rising call volume about rising maintenance fees and lack of availability, the government has stepped in and enacted laws to protect timeshare owners.
If you would like to learn more about what the government is doing or to speak with an adviser about cancelling your timeshare contract, call the Timeshare Freedom Group at (866) 668-6872.