Purchasing timeshare is a wonderful opportunity to invest in quality holidays at today’s prices. But to safeguard holiday accommodations against the wear and tear of time and ensure that they are always fresh, modern, and inviting when you arrive – ongoing maintenance and refurbishment is required.
Maintenance fees are the annual levies that the resort or developer charges. These fees are shared out amongst all timeshare owners. Covering everything from upkeep of the grounds to apartment refurbishments, they are an important part of timeshare ownership.
Is It Compulsory To Pay Maintenance Fees?
To protect all owners, you are legally bound to pay your share of the upkeep and maintenance whether you use the timeshare or not. Remember that when there are a defaulters, your holiday resort will very quickly deteriorate because there is not enough income to provide the very services that made them attractive in the first place. Should your circumstances change, renting your timeshare is a good way to recoup your annual levy.
How Are The Fees Calculated?
The annual levy (maintenance fees) is determined according to the size, location and amenities of the resort and are agreed to each year at the Annual General Meeting (AGM) of the Homeowners Association. As the homeowner’s association is a registered NPO, there is no profit earned from levies. The cost breakdown as to how the levies will be spent are also included in the AGM approved budget, which owners are able to review.
Why Do The Fees Increase?
Like any service or product, prices rise and labour costs increase – therefore your maintenance fees will increment to meet those expenses.
Remember that without maintenance fees, your timeshare accommodation would still have the 1980’s décor and furnishing!