You own a timeshare. You have owned it for many years, paid it off, and faithfully pay the maintenance fees. However you notice the resort is falling into disrepair, there are more and more vacancies every year, and you have a bad feeling about your timeshare’s future.
When you notice your timeshare property getting run down as it ages, the timeshare owners association or management may not be collecting enough maintenance fees to cover repairs and preventive maintenance. Some timeshare owners may have abandoned their timeshare, not paying the maintenance fees, and washing their hands of the deal. When this happens everyone loses. Plus the timeshare resort starts sliding downhill eventually ending up in bankruptcy.
Take this story out of Fairmont, British Colombia: Sunchaser Vacation Villas, a timeshare in Canada, has had to double their maintenance fees over a period of a few years to cover serious maintenance issues. In addition, special assessments are being charged to the owners to cover the costs of maintenance for the foundation, replacement of plumbing, flooring, counter tops, and more. Timeshare owners never like it when their maintenance fees increase. They really complain and look for a way out of their timeshare when special assessments come rolling around. No one likes surprises – especially when it comes to their money.
Well known timeshare developers like Marriott raise their maintenance fees regularly, and usually around 5%. For example, for 2015 Marriott’s Ko Olina Beach Club were as follows:
Ko Olina 2BR EOY
– Property Tax Fee – $79.06
– Replacement Reserve – $120.72
– Operating Fee – $776.15
– TOTAL – $975.93
– Increase of $43.51 (4.67%)
Ko Olina 2BR EY
– Property Tax Fee – $158.11
– Replacement Reserve – $241.43
– Operating Fee – $1,552.30
– TOTAL – $1,951.84
– Increase of $87.02 (4.67%)
Ko Olina 3BR EOY
– Property Tax Fee – $86.97
– Replacement Reserve – $132.80
– Operating Fee – $853.85
– TOTAL – $1,073.62
– Increase of $47.91 (4.67%)
Ko Olina 3BR EY
– Property Tax Fee – $173.93
– Replacement Reserve – $265.59
– Operating Fee – $1,707.69
– TOTAL – $2,147.21
– Increase of $95.79 (4.67%)
In the mean time
Fairmont Vacation Villas – The Court of Appeal for British Columbia has ruled they can not collect huge special assessment fees from the timeshare owners. Apparently the timeshare resort had to make $28 million in repairs and charged the owners up to $6,000 each to help cover the cost. The owners objected and at least for now courts have held for the owners – they don’t have to pay.
Club Land’or has filed for Chapter 11 bankruptcy. (see the Chap 11 here) They are claiming tens of millions of debt, and less than $50,000 in assets.
So what do you do when your maintenance fees double? You have to make a decision. Do you sell your timeshare, give it away, or keep it? Keeping it requires a commitment to paying the maintenance fees and being able to justify them. You’d need to feel like the fee is worth what you get from your timeshare. Otherwise you’ll resent it and it will a source of stress for you forever. In that case, you need to sell the timeshare.
You can’t undo what you did by buying the timeshare in the first place, and it won’t just go away. You’ve got to do something to fix the situation. Get in touch with a timeshare resale broker to discuss all your options. You will be glad you did.