In the most recent issue of a timeshare magazine that I hold in HIGH regards, there's an article on maintenance fees and how to "offset them."
I was stunned at some of the "smart" suggestions offered such as "using the kitchen", "renting out part of your time" and my personal favorite, "conducting business on vacation."
These suggestions may very well work on unsuspecting prospective timeshare owners...heck I used the kitchen idea back in my timeshare selling days...but this is a magazine aimed at people who already own timeshare.
Interestingly enough there's an article on the very same page talking about the $5,893.32 special assessment levied on owners of Diamond's Poipu Point Resort in Hawaii in addition to the $1,400 in annual maintenance fees.
Even if we set aside the special assessment issue (which is a continuing source of frustration to the owners there), none of these suggestions come close to covering a $1,400 annual maintenance fee.
Owners need more usable advise than "use the kitchen" to deal with the ever-increasing fees that resorts are charging each year.
Owners need to educate themselves, join together and work with their resorts' HOA to address the issue.
On a separate note, I'm off for the UK on Wednesday where I'll be speaking at this year's TATOC Conference and touring some timeshares in the area. Check back soon to see updates.
1 comment:
The Poipu Point situation illustrates the problem with the timeshare business and the timeshare proposition.
There is a board that is controlled by the developer who is assessing $5,893.32 to each week you own.
You have no options except to pay it, because unlike every other real estate matter your liability is *not limited* to the property. Not at all.
You might have bought your week for $500 but your liability is now $5,893.32 plus the $1,400 "regular" annual maintenance fee.
The developer owns most of the weeks so controls the board completely and is essentially stealing money from all the other owners.
That's what's wrong with timeshare. If the law were changed to limit your liability to your ownership, so if you don't feel like paying you can just say no and they take it back from you, this couldn't happen. The developer and the board they dominate would have to use restraint to get you to stay around and pay. As it is they can sue you, ruin your credit, do all manner of awful things to you that are far and beyond your timeshare ownership.
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