According to reports from ARDA, maintenance fees tend to be among the pressing factors driving timeshare owners away from the industry, with 50% of owners who are planning to sell doing so because they “no longer want to pay the maintenance fees” and 46% of timeshare owners who are seeking an exit citing high maintenance fees as their “most important” reason.
It’s easy to see why these annual fees place a major financial burden on many consumers.
For one thing, there’s the fact that the vast majority of consumers do not own a deeded timeshare interest, but rather points, which buy them the “right to use” a resort property, rather than anything resembling actual real estate. What’s more, plenty of consumers either bank or exchange their points every year, rather than using the “home resort” for which they are ostensibly paying their maintenance fees. Why should consumers be on the hook for payments for a resort they have no ownership stake in, and which they, perhaps, have never used?
For another thing, there’s the matter that maintenance fees tend to rise, year over year, without ceasing. It beggars the question for many consumers: “Will my timeshare maintenance fees always increase?”
Our own Michael Finn recently took on that major consumer concern in a video interview, available below:
And here’s a full transcript of what he had to say:
“Absolutely. The question is not will they increase, the question is how much will they increase.
Statistically speaking, maintenance fees have gone up significantly over the last five year period. In fact, it’s gone up so much higher than the inflationary rate, that it’s difficult to explain it, even when you’re looking at the rising costs at the resort. It’s the number one cause of consumer, timeshare owner dissatisfaction today.
It makes the product very, very difficult to resell because when a potential buyer is looking at that very, very high maintenance fee and comparing it to a comparable vacation experience they could get without having to have that annual obligation, they’re making a decision not to purchase. And that’s having a very negative impact on the ability to resell your timeshare unit.”
For more on how much timeshare maintenance fees can go up every year – and the limited resources that consumers have available to address their rising fees – we encourage you to check out the following resources:
- How Much Can My Timeshare Maintenance Fees Go Up Each Year?
- Who Is This Property Owner’s Association to Whom I Pay My Resort Maintenance Fees?
- The Evolution of the Timeshare
- The Timeshare Developer’s Dilemma
Led by Attorney Michael D. Finn with 50 years of experience, the Finn Law Group is a consumer protection firm specializing in timeshare law. Our lawyers understand vacation ownership as well as the many pitfalls of the secondary market of timeshare resales. If you feel you have been victimized by a timeshare company, contact our offices for a free consultation. Know your rights as a consumer and don’t hesitate to drop us a line with any questions or concerns.