New to TS - How much can maintenance fees increase?

[VegasBella Member Find all posts View Profile Close VegasBella]

Hi, I haven't bought a timeshare yet. But I want to. So I'm learning now.

Are there regulations about how much timeshare maintenance fees can increase?
How are the increases determined? Who decides?

[timeos2 Senior Member Find all posts View Profile Close timeos2]

A very few resorts and/or states may limit the percentage increase for operations but then usually exempt capital (reserve) costs and of course taxes. The normal limit is around 15% over the previous year but that is not absolute, some resorts and states have no limits - so the number can and has in the past gone up dramatically at some resorts.

All you can say about maintenance fees is that they will go up over time. It may be small or huge. The only certain thing is what they are for the current year. Even that is subject to the dreaded "special assessment" at anytime. It is a risk.

To be fair most resorts do try to hold fees down. Sometimes newer resorts still being sold by Developers have artificially low fees to help spur sales. When the resort sells out fees can suddenly skyrocket to make up for the underfunding in previous years.

Fees are determined by the resort or system Board. Fees have to cover costs as well as anticipated replacement / maintenance for reserve items (things with a life of more than a year). That's why having an Owner Board (owners watching out for other owners) is preferable to a profit oriented corporate group that are most Developers.

We have found that buying only at resorts that are OWNER not Developer controlled is the best way to have the most reasonable fees as well as a say in how the resort is operated and funded. Buying into any developer controlled resort or system leaves you exposed to the whim of that group for not only fees but other unpleasant surprises with virtually no recourse.

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

The board decides and there are no limits that I'm aware of. Plan on higher increases than you'd expect, and pray you don't get hit with a big special assessment. Research historical increases and reserves in the event of needed updates/repairs. There are plenty of well run timeshares, but imho the best (from a management standpoint) don't have a developer with a majority voting interest.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

History is the key and who decides is another factor. You can pretty well count on rate increases around what the cost of living is, and if a resort is consistently higher-stay away. Also look at whether there have been special assessments. If they exist, it indicates that reserves were insufficient to meet the needs of the resort and management doesn't know what they are doing.

[VegasBella Member Find all posts View Profile Close VegasBella]

How can you research the history of a resort's maintenance fees?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

One good protection that a few resorts have is a requirement that the membership at the annual meeting vote on the maintenance fee. Several resorts on the Outer Banks which are member controlled do that.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

How can you research the history of a resort's maintenance fees?

Ask the resort, or ask the owner(seller).



I don't really like the idea of the membership voting on maintenance fees. They elect board members to do that after looking into everything. Very few owners attend annual timeshare board meetings.

[VegasBella Member Find all posts View Profile Close VegasBella]

Sounds like it's a lot like a regular HOA (for homes) wherein some manage things themselves, some use management companies, some manage their money well, others don't, etc. OK that makes perfect sense to me.