Maintenance Fees

The present process involved in the timeshare industry of passing on the maintenance fees of non-paying owners to the balance of the owners in a group is not right or ethical. If we are paying additional fees, then we should receive more time for those additional fees. The resorts are re-renting out those units and reaping all the benefits of the increased cash flow while the balance of us pay to keep the organization going. If you review your balance sheets at the end of each year, you will note large negative figures for non-paying time, however; not only is this fee being passed on to us, so are all the additional fees associated with the re-renting of these units which are the same as a regular unit. If any of you feel this is not fair, maybe it is time that we start exchanging names and resorts for consideration of class action concerning what is and has been happening for the last 6 years. Many good people have been forced out of their timeshares that they paid good money for due to the maintenance fee increases being passed on. My contracts show nothing of increasing fees due to another person not paying his/her maintenance fee.

marilyn360 wrote:

The present process involved in the timeshare industry of passing on the maintenance fees of non-paying owners to the balance of the owners in a group is not right or ethical. If we are paying additional fees, then we should receive more time for those additional fees. The resorts are re-renting out those units and reaping all the benefits of the increased cash flow while the balance of us pay to keep the organization going. If you review your balance sheets at the end of each year, you will note large negative figures for non-paying time, however; not only is this fee being passed on to us, so are all the additional fees associated with the re-renting of these units which are the same as a regular unit. If any of you feel this is not fair, maybe it is time that we start exchanging names and resorts for consideration of class action concerning what is and has been happening for the last 6 years. Many good people have been forced out of their timeshares that they paid good money for due to the maintenance fee increases being passed on. My contracts show nothing of increasing fees due to another person not paying his/her maintenance fee.

Exactly .... paying owners have to take up the slack for the deadbeats (non-paying owners).

This is also due to the socalled LLC and bogus charities that take timeshare titles but have no intention of paying yearly maintenance fees merely letting the timeshare go into foreclosure. As they say, "they don't give a damn" if other owners are then held financially responsible for their scam. They should all be outlawed and shut down.

Your point is well taken. Weeks in arrears should be made whole before the "sale" or gift to a charity, which may hold these titles until the association liquidates and perhaps is allowed to collect a division of proceeds. A week that is not current should never be allowed to use, rent or sell, and the association management has to be tough about this. (Also another abuse is for insiders to use or buy weeks for less than fair value. Boards that allow this are at fault.)

wise_al wrote:

(Also another abuse is for insiders to use or buy weeks for less than fair value. Boards that allow this are at fault.)

Fair market value is only what a willing buyer will pay ..... there's no Kelly's Blue Book for timeshares like there is for autos.

Well here is my 2 cents...I bought my timeshare with Sheraton in Orlando in 2008. I didn't know too much but did do a few presentations with other companies and found Sheraton to be the best. Yes my maint fees went up every year. In five years of owning I have done one Interval Int exchange and found availability at Harborside one year. The rest of the years I rented my unit and made profit. For 2013 I was able to carry my options over to 2014. Not bad but I too agree that the maintenance fee issue is getting a little out of hand. They just keep going up. I shouldn't have to rent out my unit to try and offset the fee increases. I don't believe there is anything written into law to keep these companies from charging these fees and filing losses and writing their reports. I think the only way to combat the madness is to protest in a group in front of all of these presentation offices and prevent alot of these incident middle class citizens from signing and maybe that will get their attention. Also, I couldn't go this year to the annual meeting but maybe next year I will go and raise hell with Sheraton! Your thoughts!!!!

One more time, one of the main reasons for ever increasing maintenance fees (besides inflation) is the number of owners that default and quit paying .... other owners have to take up the slack for the deadbeats.

So I wonder how that works how maintenance fees are calculated compared to new/old owners? For example...if I bought my timeshare in 2008 for $15,900 and my maintenance fee history has been $785, $845, $900, $945 and now $998...and if someone else has had their timeshare for 5 years longer they can expect to be paying close to $2k this year? And if someone just bought into a timeshare a year ago they can expect to pay $800 respectively providing they all have the same unit/villa type?? I see a lot of ads here on Redweek for the Vistana Resort where owners are paying $500 for maintenance fees. It varies and I am curious if that was something that was negotiated during the sale or what??

christopherl72 wrote:

So I wonder how that works how maintenance fees are calculated compared to new/old owners? For example...if I bought my timeshare in 2008 for $15,900 and my maintenance fee history has been $785, $845, $900, $945 and now $998...and if someone else has had their timeshare for 5 years longer they can expect to be paying close to $2k this year? And if someone just bought into a timeshare a year ago they can expect to pay $800 respectively providing they all have the same unit/villa type?? I see a lot of ads here on Redweek for the Vistana Resort where owners are paying $500 for maintenance fees. It varies and I am curious if that was something that was negotiated during the sale or what??

Maintenance fees aren't negotiable .... it is up to the BOA or management company as to what they are each year. Perhaps at some resorts (not familiar with Vistana) the size of the unit (1bd, 1 ba or 2 bd 2 ba etc) one owns determines maintenance fees.

jayjay you sound like you support the whole Timeshare business. Just note that I too am a timeshare owner and overall thus far into my 5th year of owing a 2bd, 2ba lockoff with the maintenance fees ever increasing I am still getting use out of it and turning profit with the years that it has been rented. **BUT I am projecting by my 8th year I will be considering getting rid of it if the rate of fee increase continues or gets worse. So my $15,900 cost of the unit will not have been recovered...Not even close! Maybe 1/3rd of the cost. Sounds like maybe you purchased a resale really cheap to support continued ownership where it would benefit you! The messagte needs to be sent to these poor suckers walking into a presentation in a protest fashion. The problem is people are hooked on the free $100 gift card that comes along with the presentation as an incentive for going and then later on they get weak minded and succumb to the pressure of the salesmen.

Chris, MF's are the same for everyone at the resort at the same time depending on the size unit they own. Some owners are in SVN (Starwood Vacation Network) and they pay an extra fee. Some owners report it as part of the MF's when they advertise and some don't. Also you didn't say which Vistana. Villages or Resort. I get them mixed up but one or both have several named phases (Bella, Amelia, Key West, Fountains, Lakes, Cascades, Spas, etc.) they share amenities but have different configurations- some have dedicated 2 br units, some lock off, etc.) Each phase has its own board that sets MF's and they all differ, some more than others.

Orlando has a lot of timeshares so that makes competition to rent very difficult. In addition, there are very few TS's anywhere at any season, where you can easily recover buy in fees when you buy direct from the developer. Hence the resale value if any is what it is truly worth.

christopherl72 wrote:

jayjay you sound like you support the whole Timeshare business. Just note that I too am a timeshare owner and overall thus far into my 5th year of owing a 2bd, 2ba lockoff with the maintenance fees ever increasing I am still getting use out of it and turning profit with the years that it has been rented. **BUT I am projecting by my 8th year I will be considering getting rid of it if the rate of fee increase continues or gets worse. So my $15,900 cost of the unit will not have been recovered...Not even close! Maybe 1/3rd of the cost. Sounds like maybe you purchased a resale really cheap to support continued ownership where it would benefit you! The messagte needs to be sent to these poor suckers walking into a presentation in a protest fashion. The problem is people are hooked on the free $100 gift card that comes along with the presentation as an incentive for going and then later on they get weak minded and succumb to the pressure of the salesmen.

I'm not supporting timesharing one way or the other .... I'm merely stating facts concerning the maintenance fee process. I previously owned 9 timeshare weeks but sold them all before the great recession (thank goodness). Only one was bought from a developer .... the rest were resales. We have been posting in these forums for years to buy on the resale market (you're evidently new here).

We regular posters have also been telling people to never go to timeshare presentations but many go for the free gifts (as you stated) and then get convinced into buying. But the salesperson doesn't hold a gun to your head and make you buy .... that's a choice you make yourself (it's called free will). After all, you are the one that signs your name on that dotted line. And whatever you're told verbally in a presentation holds no legal value .... only what's written in your contract is of legal value.

Ok...i completely understand. I do however would like to compare These timeshare companies to the 2008 housing crisis in that those loan companies who preyed upon unsuspecting homeowners to refinance their homes and get swindled into signing these all interest loans or negative amorization loans etc...where the Gov't intervened and funded bail out plans...Those were all free will business pitch presentations as well. There is nothing available to help Timeshare owners as there was/is with bad loan deals. ok...I read this in one of the postings (it may have been from you) where a good strategy was to buy a timeshare resale because over time you are still getting the perks and customer service and saving money at only a fraction of the cost of buying a timeshare from the actual timeshare company. What chance do I stand if I wanted to sell my timeshare in 2018 for maybe $2k when the maintenance fees reach $1500-$1700 and I have a 2bd 2ba lockoff for 7 nights (floater)? Any info would be awesome!! Thanks

Who successfully rented your timeshare? Did you do it yourself on a website like redweek? I get so many phone calls from groups asking to do this for a large fee--I have paid, but it was always a scam. I do need to rent several weeks, but I don't trust anyone that calls my home. HELP!

christopherl72 wrote:

Ok...i completely understand. I do however would like to compare These timeshare companies to the 2008 housing crisis in that those loan companies who preyed upon unsuspecting homeowners to refinance their homes and get swindled into signing these all interest loans or negative amorization loans etc...where the Gov't intervened and funded bail out plans...Those were all free will business pitch presentations as well. There is nothing available to help Timeshare owners as there was/is with bad loan deals. ok...I read this in one of the postings (it may have been from you) where a good strategy was to buy a timeshare resale because over time you are still getting the perks and customer service and saving money at only a fraction of the cost of buying a timeshare from the actual timeshare company. What chance do I stand if I wanted to sell my timeshare in 2018 for maybe $2k when the maintenance fees reach $1500-$1700 and I have a 2bd 2ba lockoff for 7 nights (floater)? Any info would be awesome!! Thanks

When you buy from a developer there is no way to recoup what you paid initially, because when you buy from a developer you are paying his overhead = what it cost the builder to build.

It's just too bad that you didn't know about resales before you signed on the dotted line to buy from a developer. The best thing you can do is either sell at a huge loss or use or continue to rent your units. At least you have willing renters .... all timeshare owners aren't so lucky.

deborahc338 wrote:

Who successfully rented your timeshare? Did you do it yourself on a website like redweek? I get so many phone calls from groups asking to do this for a large fee--I have paid, but it was always a scam. I do need to rent several weeks, but I don't trust anyone that calls my home. HELP!

How many times did you pay these clowns? If it's more than one time, you are probably now on a "sucker list" and will continue to get calls from these scam artists.

Never, ever pay anyone a large, upfront fee to sell, rent out, market, or "cancel" your timeshare.

RedWeek is a good listing site but your week has to have some demand.