Keeping Standards High
Whether you agree with them or not maintenance fees are vital to the continued standards of quality that define the Timeshare industry.
- What are maintenance fees?
- Why do we have to pay them?
- How do maintenance fees benefit Timeshare and its consumers?
- Why do maintenance fees rise?
- Who controls them?
- How do I know it's not a scam?
- When am I invoiced?
- What happens if I don't pay my fees?
- Do I get value for money?
What are maintenance fees?
Maintenance fees are an annual payment charged to clients who own Timeshare property. They currently range from £150 to £600 depending on the type and size of the unit.
Why do we have to pay them?
Maintenance fees play a vital role in your holiday experience - preserving and often improving levels of quality and service at the resort or apartment complex in which you own Timeshare. The fees help cover a variety of costs including resort operation, furnishings and fixtures, property taxes, insurance, repairs, telephone and cable television services, utilities such as air conditioning, general upkeep by caretaking staff and the maintenance of both accommodation and amenities such as swimming pools and gardens.
At a well managed resort there will be a "sinking fund" by means of which money is saved to cover unforeseen expenses, or purely as a reserve fund for various capital costs that periodically occur with normal physical wear and tear on the property.
Maintenance of apartments, for example, may take the form of a total refurbishment - redecoration of bathrooms and kitchens, with perhaps a total internal redesign and replacement of furnishing, white goods and electrical equipment. Or, it may simply involve refurnishing - a replacement of white goods and appliances and possibly the recovering of outdated or worn furniture.
How do maintenance fees benefit Timeshare and its consumers?
With a maintenance fee system, you can be sure of a consistent standard of quality at any Timeshare destination you visit in the world. Just as the annual contributions you make to your home resort enhance the holiday experience of its exchange guests, fees paid at your exchange destinations by their owners mean that you, in turn, are assured of the same high levels of quality.
A maintenance fee system is therefore essential if a Timeshare resort is to sustain its quality standards and exchange rating. Ultimately, the consumer is the person who benefits - the higher the exchange rating of your home resort, the higher your exchange value as an individual owner and the better your holidays.
Ownership of any property demands maintenance costs, as well as time and energy. The beauty of Timeshare is that you are not directly concerned with the upkeep of your property because the management company deals with it for you. An annual maintenance fee means that all the little expenses for repairs and so on that occur throughout the year are covered in one payment - that's it. Maintenance fees are in fact a sign of good management and give you peace of mind.
Why do maintenance fees rise?
Maintenance fees can increase from time to time, usually due to inflation. However, the recent fall of the Pound against the Euro saw an increase, with many companies now billing in Euro.
Who controls them?
Rather than the developer, it is the Resort Management Company or Home Owners Association that deals with all aspects of the maintenance fees - often via their owners committee.
How do I know it's not a scam?
Any Timeshare company worth its salt will utilise this income wisely, but unfortunately there are some out there that don't. Certain unscrupulous developers will claim they are carrying out renovations when they're not - this can only lead to disillusionment and distrust among consumers.
You can see for yourself the evidence of good maintenance fee management. When you arrive at your Timeshare property and witness the renovations and quality of service first-hand, there is your proof that your fees are being managed correctly and are working for you.
A scam is a deliberate attempt to defraud someone. Maintenance fees are only a scam if they are not being used for their intended purpose. You have reason to be concerned if your fees vary too much either side of the specified range - and don't be afraid to ask what is covered.
When am I invoiced?
In Europe, invoicing is usually in November, with a percentage discount offered if you pay before the end of the next January.
What happens if I don't pay my fees?
If you fail to pay your maintenance fees, your Timeshare property will be repossessed. If you have any concerns about covering the cost of the fees, there are usually several options available to you - renting your property to a third party, for example. Your Timeshare management company should be able to offer you plenty of advice on this issue.
Do I get value for money?
Owning a property usually means taking on responsibility for maintenance costs - a potentially limitless black hole of expense. However, a Timeshare property represents amazing value for money - even including maintenance fees. How else could you stay in first rate accommodation for up to six people for around only £50 per night? Not only do you own the right to holiday in some of the most luxurious resorts across the globe, but you are guaranteed the consistent levels of quality and service you expect.
