We own a lot of timeshare weeks, many are in different timeshare systems, and thus we get a lot of questions about timeshare maintenance fees.
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We have written a couple of posts about maintenance fees, but because we get so many queries, we thought we should touch on the subject again. We will try to answer the above questions and look at how we can use the system in getting more than one week of vacation out of only paying one week of maintenance fees.
1. What is the difference between maintenance fees and special assessments?
Maintenance fees are a yearly payment to the resort for the running, upkeep and repair of the resort. Usually, a certain amount of those fees are set aside for some capital improvements. A special assessment is a one-time fee that each owner pays to cover the cost of a large capital improvement to the resort. A good example would be: one of our resorts wanted to make a major renovation to the kitchen with new sinks and granite counter tops. In order to do this they went to the board of directors of the resort and a required vote of the owners, and came up with a special one-time assessment of $550.00 per week of ownership. Each resort may be different in how they approve a special assessment, so check your bylaws. Also, it is good when buying to ask if they have had any special assessments in the past, or are looking at any in the near future.
2. What do they use those fees for?
The price you pay for your timeshare covers the cost of the land, the materials to build the resort, the labor to do the work of building the resort, the marketing and sales, and some profit for the company selling the timeshare.
Your maintenance fees cover the every day running of the resort. They pay for the staff that checks you in and out, the activities people, the cleaning folks, the groundskeepers, the people who keep the resort looking and running smoothly, etc. They also set aside money for normal updates to the resort like new furniture, appliances, and minor furnishings. Taxes and insurances need to be paid. They also cover the utilities, cable, phone, garbage, heating bills. You should think of it like your own home; you need to have money to keep it running and looking good, and it’s no different for your timeshare.
3. How much do you pay?
We own 14 timeshare weeks and usually are able to timeshare vacation 18 weeks a year. That’s a lot of really nice vacations. We often have a two bedroom villa and bring family and friends along. In total, we pay a little over $7,000.00 a year which includes property taxes on all the weeks. This breaks down to around $600.00 per month.
4. What are your highest or lowest fees that you pay?
Our highest is around $900.00, which is our Hilton timeshare. This is a 2-bedroom in red time and it is a Gold Crown resort. Our lowest are our four 1-bedroom weeks at Pinestead Reef Resort in Traverse City, Mi at $419.00 for each and it is a Silver Crown resort. As you can see, you’re not really comparing apples to apples, here.
5. How can you afford all those fees?
Although the amount we pay every year seems high, we feel it is an excellent value for the amount of quality vacations we receive. We have compared the costs of our timeshare vacations with other methods of vacationing, and we think we come out on top.
We have looked at RV’ing, vacation homes, condo ownership and/or rental, cruising, and just hotel/motel vacations. We’ve sat down and done the math for these alternative vacations, and we feel that we come out ahead when you look at total costs and number of quality days of vacations. We bought all of our timeshares on the resale market, so our upfront costs have been very low. We think that we can get what we paid for them on the resale market anytime we might wish to sell them.
6. How come some maintenance fees are so low and others are so high?
There are a number of factors that determine how much your maintenance fees are. One is the quality of the resort you own. It would cost more to keep a $300,000 house up to standards compared to a house costing $150,000, and thus it is with timeshare resorts. Also, the amount of services that the resort provides is going to vary. We have been to resorts that offer no activities and other resorts have almost” around the clock” activities for all age groups. The resort amenities will figure into the maintenance fees. Things like hot tubs, number of pools, etc. will increase the fees. Insurance is higher in an area that might get hit by hurricanes, flooding, etc.
Also, good management by the board of directors and/or the resort manager can make a huge difference in how they are using those maintenance fees. A privately owned resort usually has lower fees than a big name chain resort that is in it to make a profit. You need to look closely at the fees and what you are getting to make sure that the higher fees are worth it. We love the Hilton timeshare system, which happens to be our highest maintenance fee. It allows us to go places that we cannot get to any other way, like Sanibel and Marco Island, and we can often work it to get almost two weeks out of the one week of fees.
7. What can I do about high maintenance fees?
First, be aware that when you buy a timeshare you are going to have to pay those maintenance fees for as long as you own that week, so make sure you ask every question you can think of. Ask about the fees, how often and how much have they gone up over the years, what kind of services do you get at the resort for those fees, what kind of management is in place at the resort, and are insurance fees and taxes relatively high or low. You can also get involved in the resort itself, possibly by running for a spot on the board of directors. Make sure you read the resort bylaws, vote when they have elections, and talk to members of the board or to the director of the resort if you have concerns.
Some interesting side notes:
Some resorts charge different maintenance fees depending on the season in which you own. For example, we once stayed at a ski resort in Colorado and found that the maintenance fees were much lower for those who owned weeks in the off-season (generally, May-September). This is probably not very common, but it’s certainly worth knowing before you buy!
Some resorts have a “5-year plan,” which is quite easy for owners to understand. Certain buildings are scheduled for renovation/upgrading once every 5 years on a rotating schedule. Other issues that may arise such as breakage or other damage are dealt with as they happen, but as an owner you know that once every 5 years you will get new carpeting, furniture, or whatever your resort deems necessary for remodeling.
Hopefully, this answers some of the basic questions about maintenance fees. If not, be sure to send us an email and we will try to answer back. If you’re thinking of buying, just remember to check those fees, because you will be paying them every year for as long as you own your timeshare. The important thing is to find out as much as you can about maintenance fees before you buy, so there are no surprises. Also, read some of our other posts to better understand how to get more days and weeks out of your vacations. Happy timesharing!
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{ 2 comments… read them below or add one }
If you don’t mind, I would love some info on the following:
1. What you pay for each week owned for maintenance.
2. The pros and cons of Wyndham vs. Hilton. We own 2 HGVC weeks at the Charter Club on Marco Island-have kicked around Wydham as an add-on resale. How easy is it to trade within Wyndham? Does it matter what resort you own? We have found trading within HGVC very easy.
3. Do you own any Marriott weeks? We thought about buying in the Marriott system as friends have been happy, but the new system seems to have a lot of uncertainty.
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Beth: Thanks for your comment and questions. I will try to give you some quick answers.
1. What do you pay for each week owned for maintenance? In our post we gave the high, low and total. If you do the math, our average is about $500.00 per week that we own. Most Wyndham Resorts come in at about half a cent per Wyndham points.
2. The pros and cons of Wyndham vs. Hilton?. Both systems seem to be excellent with great resorts. There are more Wyndham resorts and they have a lot more locations. Both use a point system which we like and give a lot of flexibility in booking size of units and time of the year. Trading is also easy in the Wyndham system and we usually do it over the internet. The resort that you own your points at makes no difference except to reserve at that resort earlier than other owners, the same as the HGVC system.
3. Do you own any Marriott weeks? We did own a Marriott week but because it was in the II system rather than RCI we found it hard to trade. Although the Marriott Resorts are top of the line they also have some of the highest maintenance fees. We haven’t kept up with the changes in the Marriott system because we don’t own any. Suggest you check out the Tug site (Timeshare User Group) and read about Marriott, Hilton and Wyndham. Hope this helps.
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