Timeshare "Maintenance Fees" Query

Robemm · Dec 18, 2014

I've been meaning to write this since we returned from a wonderful week in the Florida Keys at a smallish (about 30 units) resort. Looking through the TUG classifieds I found 3 or 4 units in this resort for sale. They each had posted the maintenance fees which averaged $600; and that got me to thinking. If I bought a week at this resort, my annual fee would be $600 for my week's stay. There being 52 weeks in a year, and 30 units in the resort, that amounts to $936,000 gross income annually ($600 x 52 x 30) for the resort.

I don't know anything about resort management; but it doesn't seem as though it would take almost a million dollars annually to support this resort. Is my math way off base; or is someone making a lot of money?

silentg · Dec 18, 2014

It depends on how many owners are paying the fees? The resort might have units that are not owned but used as rentals for non timeshare vacationers. iMHO the maintenance fees keep going up because not everyone pays, and when older resorts refurbish and update units, the cost is passed on to timeshare owners. Each one of my timeshares has increased fees for maintenance for 2015. But I feel I am getting my money's worth because we get to travel when and where we want to which is why I have the timeshares. Are you planning to buy a week at the resort in the Keys? If you enjoy staying there then that sounds like a good idea.
Safe Travels
TerryC

ronparise · Dec 18, 2014

Robemm said:
I've been meaning to write this since we returned from a wonderful week in the Florida Keys at a smallish (about 30 units) resort. Looking through the TUG classifieds I found 3 or 4 units in this resort for sale. They each had posted the maintenance fees which averaged $600; and that got me to thinking. If I bought a week at this resort, my annual fee would be $600 for my week's stay. There being 52 weeks in a year, and 30 units in the resort, that amounts to $936,000 gross income annually ($600 x 52 x 30) for the resort.

I don't know anything about resort management; but it doesn't seem as though it would take almost a million dollars annually to support this resort. Is my math way off base; or is someone making a lot of money?

No one is making a lot of money. Perhaps the management company is taking a fee of 10%-15%, but the rest goes to maintaining the property and to the reserve funds.

Looking at it another way, its $2500 a month per condo...It takes me over half that much to maintain my home, and I dont employ housekeepers, maintenance men or a front desk clerk

artringwald · Dec 18, 2014

ronparise said:
No one is making a lot of money. Perhaps the management company is taking a fee of 10%-15%, but the rest goes to maintaining the property and to the reserve funds.

Looking at it another way, its $2500 a month per condo...It takes me over half that much to maintain my home, and I dont employ housekeepers, maintenance men or a front desk clerk

Good point about the reserve funds. A properly managed resort will make sure there's plenty in the reserve fund to reduce the probability of a nasty special assessment surprise.

Blues · Dec 18, 2014

Yep, front desk staff, maintenance staff, housekeeping, management fees, taxes, insurance, utilities, reserve fund, etc, etc. I'm amazed that they can run it for under a million a year. Sounds like a well-run resort.

-Bob

dioxide45 · Dec 18, 2014

Did you ask a similar question in another thread under a different handle. I was thinking I was having déjà vu until I fund it.

http://www.tugbbs.com/forums/showthread.php?t=220217

Robemm · Dec 21, 2014

Timeshare Maintenance Fees Query

Good morning and Merry Christmas to all. Thank you all for taking the time to respond, I appreciate the opinions.

To "Dioxide45", nope, no other posts under different "handles". Robemm is my only one.

vacationhopeful · Dec 21, 2014

Actually, most resorts use a 50 week year for budget planning --- to allow for "down" time and the ups & downs of the numbers. A midyear increase for medical or insurance costs; vandalism of a unit and taking the time it is in inventory.

Or as the common saying is, Stuff Happens!

1950bing · Dec 21, 2014

[IMGL]t[/IMGL]
I did the math @ the place I used to own. It was a rip off !
Go after the deadbeats !!!!'nnn

ronparise · Dec 21, 2014

1950bing said:
[IMGL]t[/IMGL]
I did the math @ the place I used to own. It was a rip off !
Go after the deadbeats !!!!'nnn

a better solution than going after the deadbeats (its expensive and we dont have any money) would be to establish a rental and sales dept to deal with the defaults and get them productive again....

At one resort I own they make the hoa controlled weeks available to the owners. just pay the fee and you get the use of another week. As a result, although we have a bad debt expense that is 17% of our budget, we have "other income" to offset it

DeniseM · Dec 21, 2014

dioxide45 said:
Did you ask a similar question in another thread under a different handle. I was thinking I was having déjà vu until I fund it.

http://www.tugbbs.com/forums/showthread.php?t=220217

Rob was advised to change his user name, because formerly, he was using his personal email address, as his user name. It appears that he re-registered with a new name, rather than asking an Admin to change the name for him, so now he has two user names.

That is indeed his post, under his original user name.

dioxide45 · Dec 21, 2014

DeniseM said:
Rob was advised to change his user name, because formerly, he was using his personal email address, as his user name. It appears that he re-registered with a new name, rather than asking an Admin to change the name for him, so now he has two user names.

That is indeed his post, under his original user name.

Actually, I think he registered under the e-mail address recently where the user name in the start of this thread was registered back in 2008. Though he claims that other post isn't his?

DeniseM · Dec 21, 2014

You are correct - I had it backwards.

This was his original registration name:

Robemm
TUG Member

BBS Reg. Date: May 4, 08
Location: South Carolina
Posts: 2

BTW - to those who wonder, I am not "disclosing" any private info. Your registration date shows every time you post.

Timeshare "Maintenance Fees" Query

Robemm

silentg

TUG Review Crew: Expert

ronparise

artringwald

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Blues

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dioxide45

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Robemm

vacationhopeful

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1950bing

ronparise

DeniseM

dioxide45

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DeniseM