It wouldn’t be a timeshare without maintenance fees. However, this essential component of vacation ownership is one of the least talked about and least understood aspects of the product. Uncertainties surrounding the topic range from what happens if you stop paying timeshare maintenance fees to how much they cost to what they even are. But fear not: if you have questions, we have answers. Read along to learn everything you need to know about timeshare maintenance fees and stay tuned to learn how to safely and legally walk away from timeshare maintenance fees if they have made vacation ownership unworkable for you.
- What Are Timeshare Maintenance Fees?
- How Much Are Maintenance Fees?
- When Are Maintenance Fees Due?
- What Do Timeshare Maintenance Fees Cover?
- What Happens If I Stop Paying My Timeshare Maintenance Fees?
- Are Timeshares Really Worth the Maintenance Fees?
- Is There Any Way I Can Walk Away From My Timeshare Maintenance Fees?
- Sell Your Timeshare With Timeshares Only
What Are Timeshare Maintenance Fees?
Resorts are beautiful, luxurious getaways we love to visit year after year. Ever wonder what keeps them just so grand? You guessed it: timeshare maintenance fees. Part of the upkeep of vacation ownership is divided between all of the owners. Maintenance fees are required dues that owners pay to maintain the resort. They go towards employee wages, upkeep, and renovations.
Needless to say, these fees are an important part of regular maintenance that keeps the timeshare resort going. Would you want to be an owner at a resort that is dirty, has poor customer service or outdated amenities? Of course not! You can think of maintenance fees as the upkeep of a vacation home, except they are less expensive, and a timeshare management company handles the maintenance of the timeshare property for you.
How Much Are Maintenance Fees?
Depending on your resort and your unit, fees vary widely. Keep in mind every owner at every resort pays maintenance fees. That means the associated costs are divided among all owners, which means you are actually paying less. Every few years, the American Resort Development Association, or ARDA, releases reports on the timeshare industry, the cost of ownership, and more. According to ARDA’s 2024 State of the Industry Report, as of 2023, the average maintenance fee per interval was $1,260.
When Are Maintenance Fees Due?
The due date for maintenance fees also varies by developer. Most of these are annual maintenance fees. However, other resorts may require them to be paid monthly, quarterly, or even bi-annually. When considering becoming an owner, it’s important to know when your fees will be due so you can be prepared and get the most out of your vacation ownership. Generally, fees are due at the beginning of the year or around the time of your use year. Check your contract to see exactly when they are due. Failing to pay your maintenance fees can result in some unpleasant situations as an owner.
What Do Timeshare Maintenance Fees Cover?
Many owners wonder what exactly their maintenance fees go towards. As a few examples, they cover upgrades to the resort and units, emergency funds, property taxes, and more.
Unit Upgrades and Maintenance
Just like owning a car or a house, a timeshare requires maintenance. In addition to the initial purchase price, there are annual secondary costs associated with caring for your home and automobile. This concept also applies to vacation ownership. Maintenance fees cover the cost of upgrades to your unit, for example, new appliances, new beds, lighting fixtures, and air conditioning servicing, just to name a few. Of all the benefits timeshare owners pay for, this is definitely one many timeshare owners understand the significance of.
Beautification
Not to mention, they also cover the cost of maintaining the grounds of your resort. The trees don’t trim themselves! Additionally, the annual fees you pay ensure your family is safe on vacation since the resort invests tens of thousands of dollars into making the grounds safe and secure.
New Amenities
You’re also compensating for the on-site amenities that require care during the year. This can include the labor and supplies needed to maintain pools, spas, gyms, and parks associated with your resort. This also enables the resort to bring you new and improved attractions and on-site amenities year after year.
In Case of Emergency
In addition to these factors, maintenance fees are also used during emergency situations. If your resort is affected by inclement weather, it can be repaired using the maintenance fees you’ve already paid. This means owners aren’t asked to pay even more to cover the damages when serious weather strikes. Paying these fees is a normal part of owning a timeshare you should expect when deciding to own your vacations.
What Happens If I Stop Paying My Timeshare Maintenance Fees?
Curious what happens if you just stop paying your timeshare maintenance fees? In short, you shouldn’t. If you stop paying your timeshare maintenance fees, what happens is that you will likely default on your ownership. This not only hurts the resort, but it hurts you and your credit. Like a home going into foreclosure, the resort takes the ownership back, and it will stay on your credit report for seven years.
This can be a real concern for people who are trying to buy a house, a car or anything that requires a credit check before purchase. Many timeshare cancellation companies will tell you to stop paying your maintenance fees while they work on a way to “get you out.” However, in the fine print of their contracts, a successful cancellation includes foreclosure.
As a result, it’s important to be wary of any timeshare exit company or timeshare cancellation company, regardless of how appealing the option may seem. Walking away from timeshare maintenance fees is no simple task! If you want to stop paying maintenance fees safely and legally, your best bet is to contact the timeshare company in charge of your unit or sell your timeshare.
What If I Can’t Pay My Timeshare Maintenance Fees?
As mentioned, it’s important to talk to your timeshare developer if you’re ever in a situation where you can’t pay your maintenance fees. They may have options to help you, like an in-house rental program or exit solutions.
If you do not make payments on your maintenance fees, you could hurt your credit. Timeshare contracts outline the necessity of paying maintenance fees when you sign, so it’s important that you do so. Whether you use your timeshare or not, you must pay your fees. That responsibility is just part of being a timeshare owner. After all, the resort and your unit will still need regular upkeep.
Maintenance Fee Management: How to Potentially Lower Your Timeshare Maintenance Fees
While in-house exit solutions and reputable resale companies are viable ways to walk away from your timeshare maintenance fees, you may be able to lower your payments and keep your timeshare. Here are some strategies that could potentially help you pay less:
- Negotiate With Management: If you think the timeshare management company is overcharging you, you may be able to negotiate for a lower annual payment.
- Join the Board: As a member of your resort’s HOA board, you can have a say in how the budget is allocated, potentially lowering timeshare fees for everyone at the resort.
- Vacation Exchange: By joining a vacation exchange company like RCI or Interval International, you may be able to exchange for a timeshare with lower maintenance fees.
- Rent Out Your Timeshare: Renting out your timeshare on the resale market is a great way to earn passive income to pay off your maintenance fees. More on this below!
Are Timeshares Really Worth the Maintenance Fees?
While it may seem like there’s a lot to consider regarding maintenance fees, it’s important to remember what you’re paying for. Timeshares offer triple the space of a hotel room, and points-based timeshares give you tons of flexibility to travel whenever or wherever you want. If you like lots of room to stretch your legs and luxurious vacations filled with amenities, then timeshares are very much worth it!
If you’re looking to purchase a timeshare, our resale marketplace is packed with timeshares in popular destinations like Hawaii, New York, Orlando, and more! What are you waiting for?
What Should I Do When I’m Not Using My Timeshare?
For the years you aren’t using your timeshare, you have the option of renting it out. Renting your timeshare is a great way to put money in your pocket and help pay off your maintenance fees. If you find you don’t want to use your timeshare at all anymore, you may be able to sell it to a new owner who is looking to become an owner or add to their existing ownership. At Timeshares Only, we help timeshare owners like you rent out their timeshare every day. We’ll post an ad for your rental on our marketplace before using our cutting-edge marketing strategies to promote it to other timeshare owners worldwide. Thus, you’ll still get some use out of your timeshare even when you don’t visit.
What Happens if You Default on a Timeshare?
If you stop paying your timeshare maintenance fees or mortgage, you will default on your ownership. If you default on your timeshare, it will hurt your credit and show on your credit report for seven years. This means that when you try to borrow money during that period, the default can have a negative impact. You could be denied from receiving a loan on a home, car, or other goods you apply for.
Is There Any Way I Can Walk Away From My Timeshare Maintenance Fees?
As we mentioned before, you should never just stop paying your maintenance fees. The financial consequences of halting your payments are higher than what timeshare maintenance fees cost. With that said, there are two ways you can walk away from timeshare maintenance fees.
The Rescission Period
If you’ve only recently purchased a timeshare and decided you don’t want it, you may still be within the rescission period. This period is a small window where you can return the timeshare to its resort developer. If you do so during this timeframe, you will receive a full refund for your purchase. The timeshare rescission period varies from state to state, with most having a period that ranges from three to fifteen days. Before buying a timeshare, read the agreement so you know the rescission period. If you’ve owned a timeshare for longer than the rescission period, don’t worry! There’s still a way for you to get out of timeshare maintenance fees.
Selling Your Timeshare
If you’re sure you no longer want to pay maintenance fees, a safe way to exit your timeshare is by selling it. While you likely won’t be able to recoup all your timeshare costs, it’s a great way to ensure you won’t have to pay a maintenance fee again. If you’re sure a timeshare isn’t for you, Timeshares Only can help.
Sell Your Timeshare With Timeshares Only
Much like how we can help you rent out your timeshare, we can also help you advertise it on our marketplace to sell it on the resale market. We’ve been in the industry for over 20 years, and as a member of ARDA, we follow a strict set of guidelines that helps to keep everyone in the industry safe. With Timeshares Only, you can rest assured that you’re in good hands. If you have any questions, feel free to give us a call at 1-800-610-2734 or email us at [email protected]. We’re always happy to help!
