Article states that 40% of owners at David Walleys did not pay 2010 dues..

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

Unpaid dues rock Walley's time-shares | RecordCourier.com


.....As much as 40 percent of David Walley's Hot Springs Resort & Spa's 6,600 time-share owners have not paid their dues for 2010, according to Gary Grottke, treasurer of the Walley's Property Owners Association and president of Quintus Resorts. The shortage is putting financial strain on those owners who have paid their dues, and, if not rectified, could mean closure of the time-share property.................

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

In discussions here some have suggested that these tough times would be a good time for the TS industry to show a little compassion, to try to come up with a way to help those caught up in the times financially.

Generally, those thoughts were not received well.

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

Celebrity Resorts is in control of management, and that in itself spells problems. The article mentions lack of communication between management and the board, but with Celebrity it is lucky to have an independent board at all.

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

JLB: I'm all for compassion, but bills have to be paid---so who should pay them, if not the owners?

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

Celebrity Resorts is in control of management, and that in itself spells problems. The article mentions lack of communication between management and the board, but with Celebrity it is lucky to have an independent board at all.

Celebrity controlled resorts may be one of the worse run resort groups in the country. I wouldn't buy any of them.

[riverdees05 Platinum Contributor Find all posts View Profile Close riverdees05]

Glad I don't own there, would hate to pay 1.4 times the maintenance fees to make up for non-payers

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

Glad I don't own there, would hate to pay 1.4 times the maintenance fees to make up for non-payers

Your math is off.

With 40% non-payers, the remaining owners would need to pay 167% to maintain level revenues. With 50% default, that rises to 200%. With 67% default, 300% increase.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

JLB: I'm all for compassion, but bills have to be paid---so who should pay them, if not the owners?

How about you?

Anyway, my point originally is that some people just can't pay now, so they aren't. Like at a certain local golf course that gave members the option the renew their annual memberships, and many didn't this year, timeshare owners feel the same way. How many would not pay if it was optional (pay just the years you want to use it)?

I have not sensed any scaling down/economizing. Other things have, out of necessity. Anyone have a fee rollback at their resorts, or any sorta of innovative ideas to help those having a hard time?

My original thoughts were directed at the developers/marketers, that now may be the time to stop selling stuff that's $1 on ebay for $25K. I do appreciate the difference between sales and ongoing operations.

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

Ownership comes with responsibility..

How about you?

How many would not pay if it was optional (pay just the years you want to use it)?

I believe that program exists.. It's called Renting!


*****

Realistically, what the HOA's and management groups have to focus on is creating additional outlets for both liquidations and rentals other than the developers. I believe this is starting to sink in for many resorts, but it will still take more time for any real change to occur.

In the past, the HOA could simply count on the associated developer to reacquire any foreclosures or deedbacks- so no thought was ever given to the process. Now, as developer sales have slowed due to the economy- that outlet is no longer available to many associations, as developers are very hesitant to take on more inventory (and the subsequent dues).. The associations weren't prepared for this, and as a result are struggling.

Worse yet, we've also seen examples where developers have simply not paid the fees that they owe to the association.. And even other cases where the developer encouraged the association to aggressively pursue foreclosures and deedbacks, then abandoned them with those ownerships and provided no plan of action.

The reality is that every developer's single goal is short-term profit.. They don't really care about the actual viability of a project. The association's single goal should be long-term sustainability. While both sides need each other, ultimately they don't have a hell of a lot in common.

The main obstacle to HOA's creating a viable long term product is that consumers generally are drawn to the new shiny toy in the box.. It's this basic human nature that empowers developers and generates sales.. Savvy consumers can sometimes resist the temptation, but they are still tempted.

Hopefully, what will finally come out of this challenging period is a much better understanding from the association side that consumer education is vital to the long-term health of the property. Also, HOA's will need to spend a little more time thinking about not just maintaining the property, but consistently improving the property.

We may see that eventually, even sold out owner controlled resorts have to start thinking a little more like developers. I keep waiting to see where an HOA is budgeting for marketing campaigns to try and ensure a more consistent demand.

Of course, the economy could improve- sales could pick back up- and everything could simply return to how it was before..

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Yup, I see all of that every day.

[1950bing Senior Member Find all posts View Profile Close 1950bing]

They could just throw in an SA. One of the most powerful tools they have.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

JLB: I'm all for compassion, but bills have to be paid---so who should pay them, if not the owners?

Guess you don't ever watch Oprah or Ellen.

[rikkis_playpen Diamond Club Contributor Find all posts View Profile Close rikkis_playpen]

Another article on Walley's...

Walley's resort time-share faces closure in NV - KTVN Channel 2 - Reno Tahoe News Weather, Video -


.......In a statement, Celebrity Resorts said the resort could close if time-share owners don't pay a $494 to $939 "special assessment" designed to offset a running budget deficit.......

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Walley's resort time-share faces closure in NV - KTVN Channel 2 - Reno Tahoe News Weather, Video -


.......In a statement, Celebrity Resorts said the resort could close if time-share owners don't pay a $494 to $939 "special assessment" designed to offset a running budget deficit.......

Fear of Loss is the same tactic used to get you to buy in the first place. It is a stronger emotional tool than desire for gain.

Sometimes, though, loss is the better deal. Sell the place and divide up the profit/loss.

If it was marketed for true market value, rather than hyped-up developer prices, it could be sold for a profit. Several SW FL resorts fall into that category, being worth more than the total of the individual units' market prices.

[PHILL12 Senior Member Find all posts View Profile Close PHILL12]

If I owned there I would say close it! We don't own there and would not buy as it is a average resort at best on the way from Lake Tahoe area to Carson City. For years we passed it on way to Reno thinking it was a motel until one of our cooks at the Ridge told us he worked there at dinner time and had us come in for dinner.!

We own up the hill at the Ridge Tahoe and go down every year for great dinner but resort just not that great that I would ever own there anyway.

The problem I see is if the resort makes owners who are paid up cover losses because of non-paying owners this is ridiculous! Most people are having enough problems keeping up with their bills without being hit with these fee's. As a owner you only own 1/52 of one unit so paying the fee's of others gets you nothing when your resort can be bought for a dollar.All this will do is push other owners to walk away if no choice because owning a timeshare is nice but way down the family list of needs. One thing to update the property but another thing to cover resort losses . This might be the idea is get more owners to walk before closing and selling the property, more profit!

If the resort later sells these units none of that profit going back to the owners so they get nothing. I would say sell the property and each owner gets their portion and leave it at that.

We own at the Ridge Tahoe which is one of the best resorts in Lake Tahoe but I would say sell if this happen there.

PHILL12