Over 9.9 million families have timeshares. When it comes to buying timeshares, there are fees that you must pay to keep your timeshare. One main fee includes timeshare maintenance fees. The following includes more details.
What Are Timeshare Maintenance Fees?
Time maintenance fees are fees that cover repairs and regular maintenance of the property, such as landscaping, business costs, and maintaining amenities. These fees are collected annually or monthly by the timeshare management company in order to maintain your timeshare property.
This service goes a long way for your property, especially for maintenance and repairs that are very costly, like the roof. A roof’s life expectancy depends on the kind of roof on the property as well as how well the roof is maintained.
For example, if your property has a TYPO roof, the longevity can be 18 to 20 years. If your property has an EPDM roof, it can last 15 to 18 years, or if it’s a PVC roof, the longevity of it is up to 30 years. Your property’s roof, just like any plumbing, window treatments, and property maintenance, will remain intact for decades with proper upkeep. Your timeshare maintenance fees will ensure this.
How Much Do They Generally Cost?
The average annual maintenance fee for timeshares is $1,000, and the cost of these fees increases every year a lot quicker than the regular inflation rate. The average increase is approximately 2% per year. So, the original $1000 fee can be about $1,220 annually.
Another thing to consider when it comes to these fees is the different types of timeshares out there, the types of the week, and the seasons. From there, you can look into your finance and strategize how you can maintain your timeshare ownership and all your other obligations.
The different types of timeshares include the following:
- Fixed Vs Floating Vs Fractional
The weekly types include floating, fixed, points, and right-to-use. Opting for a fixed week is when you return to your particular travel destination at the same time annually. A floating week allows you to travel to the destination if you are not able to go there during your usual time period. Also, the timeshare where you will have a little less commitment is the right-to-use timeshare ownership.
- Timeshare Vs Fractional Ownership
Money is the main difference between a timeshare and fractional ownership. Timeshares are broken down at weekly intervals. Fractional ownership is usually divided into thirteenths, eights, or fourths, and the owners of the fractional would have an equal number of days. So, when you compare the weekly set-up to the divided time, time ownership seems to be more affordable, and it is. In fact, it’s much more affordable than fractional ownership.
- Timeshare Points Vs Weeks
You can choose the floating, fixed, or right-to-use weekly types. Otherwise, you can choose a points-based system, where you can travel every year to a different destination. With the points earned through the point-based system, the points that are earned can pay some or all of the fees that will allow you to be able to travel every year.
- Deeded Timeshare Vs Weeks
There is some diversity with weekly timeshare types. However, some people may want something like traditional real estate, which is where deeded timeshare ownership comes into play. In this type of timeshare, you will own it for your entire life unless you sell it.
And lastly, the season is another factor to consider when finding out the costs associated with buying a timeshare. Most of these timeshare resorts use factors, such as the time of the year, and how desirable the location is, to decide which seasons to use. During higher demand seasons, prices will be higher and vice-versa. If you aren’t sure if a timeshare is realistic for your long-term budget, take a look at your assets, and create an estate plan while you’re at it. It’s recommended that you update your estate plan every five years. Once you know what you can spend, you can decide if a timeshare is within your reach.
When it comes to owning a timeshare, you must abide by your timeshare maintenance fees. And when you take serious consideration of all the important factors mentioned above, you can wisely work out these and other assessment fees for the timeshare.
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