Timeshare maintenance fees are one of the most important parts of vacation ownership, but they’re also one of the least talked about. What are these fees, what do they cover, and what happens if you stop paying timeshare maintenance fees? In truth, these timeshare fees play a major role in the maintenance of your resort. So if you like the amenities, accommodations, and service that make your timeshare resort as luxurious as it is, these fees are definitely worth the cost. With that said, there is a way to to walk away from timeshare maintenance fees if you decide you’re no longer interested in them. Either way, knowledge is power! If you’re on the fence about buying a timeshare, you’ll need to know as much as you can about timeshare maintenance fees.
What Are Timeshare Maintenance Fees?
Resorts are beautiful, luxurious getaways we love to visit year after year. Ever wonder what keeps them just so grand? You guessed it: timeshare maintenance fees. Part of the upkeep of vacation ownership is divided between all of the owners. Maintenance fees are required dues that owners pay to maintain the resort. They go towards employee wages, upkeep, and renovations.
Needless to say, these fees are an important part of regular maintenance that keeps the resort going. Would you want to be an owner at a resort that is dirty, has poor customer service or outdated amenities? We’d hope not! You can think of timeshare maintenance fees as the upkeep of a vacation home, except they are less expensive, and a timeshare company handles the maintenance of the property for you.
How Much Are Maintenance Fees?
Depending on your resort and your unit, fees vary widely. Keep in mind every owner at every resort pays maintenance fees. That means the associated costs are divided among all owners, which means you are actually paying less. Every few years, the American Resort Development Association, or ARDA, releases reports on the timeshare industry, the cost of ownership, and more. According to ARDA’s 2022 State of the Industry Report, the average maintenance fee per interval is $1,120.
When Are Maintenance Fees Due?
The due date for maintenance fees also varies by developer. Most of these are annual maintenance fees, but other resorts may require them to be paid monthly, quarterly, or even bi-annually. When considering becoming an owner, it’s important to know when your fees will be due so you can be prepared and get the most out of your vacation ownership. Generally, fees are due at the beginning of the year or around the time of your use year. Check your contract to see exactly when they are due. Failing to pay your maintenance fees can result in some unpleasant situations as an owner.
What Do Timeshare Maintenance Fees Cover?
Many owners wonder what exactly their maintenance fees go towards. As a few examples, they cover upgrades to the resort and units, emergency funds, and more.
Unit Upgrades and Maintenance
Just like owning a car or a house, a timeshare requires maintenance. Every year, you have costs associated with caring for your home and automobile. This concept also applies to vacation ownership. Maintenance fees cover the cost of upgrades to your unit, for example, new appliances, new beds, lighting fixtures, and air conditioning servicing, just to name a few. Of all the benefits timeshare owners pay for, this is definitely one many timeshare owners understand the significance of.
Beautification
Not to mention, they also cover the cost of maintaining the grounds of your resort. The trees don’t trim themselves! Additionally, the annual fees you pay make sure your family is safe on vacation since the resort invests money into making the grounds safe and secure.
New Amenities
You’re also compensating for the on-site amenities that require care during the year. This can include the labor and supplies needed to maintain pools, spas, gyms, and parks that are associated with your resort. This also enables the resort to bring you new and improved attractions and on-site amenities year after year.
In Case of Emergency
In addition to these factors, maintenance fees are also used during emergency situations. If your resort is affected by inclement weather, it can be repaired using the maintenance fees you’ve already paid. This means when serious weather strikes, owners aren’t asked to pay even more to cover the damages. Paying these fees is a normal part of owning a timeshare and should be expected when deciding to own your vacations.
What Happens If I Stop Paying My Timeshare Maintenance Fees?
Curious what happens if you just stop paying your timeshare maintenance fees? It’s not recommended. If you stop paying your timeshare maintenance fees, you will likely default on your ownership. This not only hurts the resort, but it hurts you and your credit. Like a home going into foreclosure, the resort takes the ownership back, and it will stay on your credit report for seven years.
This can be a real concern for people that are trying to buy a house, a car or anything that requires a credit check before purchase. Many timeshare cancellation companies will tell you to stop paying your maintenance fees while they work on “getting you out,” however, in the fine print of their contracts, a successful cancellation includes foreclosure.
As a result, it’s important to be wary of any timeshare cancellation company, regardless of how appealing the option may seem. Walking away from timeshare maintenance fees is no simple task! If you don’t want to pay your annual maintenance fee, your best bet is to get in contact with the timeshare company in charge of your unit or selling your timeshare.
Learn more: Timeshare Exit Scams All Owners Need to Know!
What If I Can’t Pay Them?
As we’ve said before, it’s important to talk to your timeshare developer if you’re ever in a situation where you can’t pay your timeshare maintenance fees. They may have options to help you, like an in-house rental program or exit solutions.
If you do not make payments on your maintenance fees, you could hurt your credit. Timeshare contracts outline the necessity of paying maintenance fees when you sign, so it’s important that you do so. Regardless if you use your timeshare or not, your fees need to be paid. That responsibility is just part of being a timeshare owner. After all, the resort and your unit will still need regular upkeep.
Learn more: How to Exit Your Timeshare Responsibly With Safe Options!
Are Timeshares Really Worth the Maintenance Fees?
While it may seem like there’s a lot to consider when it comes to maintenance fees, it’s important to remember what you’re paying for. Timeshares offer triple the space of a hotel room, and points-based timeshares give you tons of flexibility to travel whenever or wherever you want. If you like lots of room to stretch your legs, and luxurious vacations filled with amenities, then timeshares are very much worth it!
If you’re looking to purchase a timeshare, our resale marketplace is packed with timeshares in popular destinations like Hawaii, New York, Orlando, and more! What are you waiting for?
What Should I Do When I’m Not Using My Timeshare?
For the years you haven’t used your timeshare, you have the option of renting it out. Renting your timeshare is a great way to put some money back in your pocket and help to pay off your maintenance fees. If you find you don’t want to use your timeshare at all anymore, you may be able to sell it to a new owner who is looking to become an owner or ad to their existing ownership. At Timeshares Only, we help timeshare owners like you rent out their timeshare every day. We’ll post a listing for your rental on our marketplace before using our cutting-edge marketing strategy to promote it to other timeshare owners around the world. That way, you’ll still get some use out of your timeshare even when you don’t visit.
What Happens if You Default on a Timeshare?
If you stop paying your timeshare maintenance fees or mortgage, you will default on your ownership. If you default on your timeshare, it will hurt your credit score and show on your credit report for seven years. This means that when you try to borrow money during that time period, the default can have a negative impact. You could be denied from receiving a loan on a home, car, or other goods you apply for.
Is There Any Way I Can Walk Away From My Timeshare Maintenance Fees?
As we mentioned before, you should never just stop paying your timeshare maintenance fees. The consequences of what happens when you stop paying them are higher than what timeshare maintenance fees cost. With that said, there are two ways you can walk away from your timeshare maintenance fees.
The Rescission Period
If you’ve only recently purchased a timeshare and decided you don’t want it, you may still be within the rescission period. This period is a small window of time where you can give the timeshare back to its resort developer. If you do so during this timeframe, you will receive a full refund for your purchase. The timeshare rescission period varies from state to state, with most having a period that ranges from three to fifteen days. Before buying a timeshare, be aware of the rescission period. If you’ve owned a timeshare for longer than the rescission period, don’t worry! There’s still a way for you to walk away from timeshare maintenance fees.
Selling Your Timeshare
If you’re sure you no longer want to stop paying maintenance fees, a safe way to exit your timeshare is by selling it. While you likely won’t be able to recoup all your costs, it’s a great way to ensure you won’t have to pay a maintenance fee again. If you’ve made sure a timeshare isn’t for you, Timeshares Only can help.
Sell Your Timeshare With Timeshares Only
Much like how we can help you rent out your timeshare, we can also help you list it on our marketplace to sell it on the resale market. We’ve been in the industry for over 20 years, and as a member of ARDA, we follow a strict set of guidelines that helps to keep everyone in the industry safe. With Timeshares Only, you can rest assured that you’re in good hands. If you have any questions, feel free to give us a call at 1-800-610-2734 or email us at [email protected]. We’re always happy to help!
