2010 Maintenance Fee Thread

[DavidnRobin]

DeniseM -

why did the MF thread get moved to this SBP thread? should be the other way around...

 

[DeniseM]

Yes it should have been the other way around! (I did it backwards!)

 

[myip]

Just got my bill for SBP two bedroom lock off. Maintenance fees went from $908 to $1103. $184.98 they are listing as replacement reserve. They can call it whatever they want. Either way owners are getting screwed. Again.

My 2 bedroom lock off at SBP Palmetto is $967.40 - not including SVN
and my 2 bedroom non-lock-off in the original unit is 881.62

 

[josh2268]

Just got my SVV Bella maintenance fees today for 2 bedroom. Looks like about 25% increase from previous year.

$1144.81 2009 Total
$1308.11 2010 Total


$884.75 operating assessment
$134.77 replacement reserve
$174.59 taxes
$109.00 SVN
$5 ARDA-ROC PAC Contribution.

I called starwood to complain as I have seen many others do on this board and all I hear back is starwood is pushing foreclosure on deliquesces as fast as possible. Once done Starwood will own the units and pay the maintenance fees with income generated by either selling the units or renting them out. My immediate thought was next year maintenance fees should be reduced because we will not be paying for delinquent owners anymore. However my gut tells me this to overly optimistic, and from reading others comments with calling probably untrue.

 

[jands]

Latest timeshare cost

We just got our bill for Broadway Plantation and was surprised at the number of people not paying their costs. The difference to keep operating is being put on the people that pay their fair share. Something is wrong with this picture. I wonder if that is legal. I also wonder how many units are being rented out to section 8 parties to keep the income coming in. That doesnt help the situation any and makes it less appealing if they do it. Wish I had never got involved.

 

[DanCali]

I called starwood to complain as I have seen many others do on this board and all I hear back is starwood is pushing foreclosure on deliquesces as fast as possible. Once done Starwood will own the units and pay the maintenance fees with income generated by either selling the units or renting them out. My immediate thought was next year maintenance fees should be reduced because we will not be paying for delinquent owners anymore. However my gut tells me this to overly optimistic, and from reading others comments with calling probably untrue.

I have yet to learn of any Starwood Vacation Ownership resort that has ever had an reduction in MFs. Every year there is a different reason why they raise MFs much more than inflation costs.

The income from renting delinquent units left over for the HOAs is, in my opinion, close to meaningless since it is net of rental commissions (~50%), daily (7) housekeeping charges, and some other fees. Starwood makes money from these rentals, HOAs don't.... it's a complete sham.

Having paying owners pay the bills of delinquent owners is a house of cards waiting to collapse at any moment. More and more owners will choose to go delinquent, despite the adverse impact on their credit scores, and MFs will rapidly spiral out of control.

Something drastic has to be done to prevent this from happening.

 

[folashade]

Just got the bill for SVV 1 bdrm Key West
2010 Operating assessment 371.74
2010 replacement reserve 68.46
tax 123.17
SVN 109.00
PAC 5
Total $677.37

 

[cherrysaw]

EOY Vistana Villages 2bd

This is unreal- got my bill today:


Last year:
Maintenance Fee(s) $ 395.07

Tax - If Applicable $ 52.74

Membership Fee - If Applicable $ 109.00

Other* $ 0.00

Interest $ 0.00

Late Fees $ 0.00

ARDA ROC PAC Contrib.** $ 5.00

Sub-Total
Total Prior Year Charges $ 561.81


This Year:
Maintenance Fee(s) $ 509.76

Tax - If Applicable $ 67.01

Membership Fee - If Applicable $ 109.00

Other* $ 0.00

Interest $ 0.00

Late Fees $ 0.00

ARDA ROC PAC Contrib.** $ 5.00

Sub-Total
Current Year Charges $ 690.77


Total Due $ 690.77

That is a $128.96 increase. Seems like a lot to me. No wonder a lot of people aren't paying their fees...

Sue

 

[jw0]

Got my SBP bill in the mail today. The numbers previously posted are correct.

If I read this correctly, the association takes in $10.3 M in MFs. The association is setting aside 2.2M for "uncollectible accounts".

That means about 20% of the owners are not paying their fees! That's a lot of weeks!

Makes me think - either these weeks will be rented out, or they will go unused.

If they're rented out, hopefully our "rental income" will increase.
If they're not used, hopefully our "housekeeping" expense will decrease.

Wishful thinking, I suppose.

-John.

 

[Troopers]

Ugh...just paid both my dues at WKORV.

What a stinker!

 

[DisneyDerek]

Timeshare Board of Directors

I find it very intriguing how MFs are increasing across the board when supposedly these increases are voted on and approved by the board of directors for each time share resort. I guess we know who's really represented (or not represented) at these board meetings.

I don't recall receiving a ballot to approve these outrageous MF increases. Did anyone receive one? How can the justifications about "delinquent" timeshare payments from other owners being universally applied for each resort? Seems like a class action lawsuit should be launched against SVN for misrepresentations (I don't recall our sales rep saying that fees can be increased as high as 24.9% at our resort - KOR).

 

[tlpnet]

I got my SVV Bella and Key West MF bills today. I don't understand how the increase for Bella could be so much higher than Key West. I believe this 28.3% increase is the highest % increase of all the properties' MF's available so far. Breakdown as follows:

2 BR SVV Bella - 2010
Operating Assessment - $884.75
Replacement Reserve - $134.77
Estimated Real Estate Tax - $174.67
Total - $1,194.19
2009 Total - $930.81
Increase - $263.38 - 28.3%

2 BR SVV Key West - 2010
Operating Assessment - $764.50
Replacement Reserve - $141.18
Estimated Real Estate Tax - $157.05
Total - $1,062.73
2009 Total - $936.39
Increase - $126.34 - 13.5%

-tim

 

[DanCali]

One thing that doesn't make sense with all these alleged delinquencies in Orlando is that you would expect owners who can't/won't pay MFs to just list the property for sale and get rid of the liability.

Currently RedWeek has 30 resales listed for WKORV and 32 for WKORVN while SVV has only 10 resale listings, and the Orlando resort is much larger. Owners in Maui also have a reasonable option to rent, so if there are so many delinquencies in both Orlando and Maui it makes even less sense why there are so many more Maui resale listings relative to SVV.

Just based on the number of WedWeek resale listings I would have concluded that Orlando owners were much happier (i.e., paying MFs)...

 

[DeniseM]

I find it very intriguing how MFs are increasing across the board when supposedly these increases are voted on and approved by the board of directors for each time share resort. I guess we know who's really represented (or not represented) at these board meetings.

I don't recall receiving a ballot to approve these outrageous MF increases. Did anyone receive one? How can the justifications about "delinquent" timeshare payments from other owners being universally applied for each resort? Seems like a class action lawsuit should be launched against SVN for misrepresentations (I don't recall our sales rep saying that fees can be increased as high as 24.9% at our resort - KOR).

Hi Derek - Starwood handpicks the Board of Directors, so you will most likely never get a ballot to approve anything. Welcome to TUG! There are lots of us who agree with you!

 

[jerseygirl]

I got my SVV Bella and Key West MF bills today. I don't understand how the increase for Bella could be so much higher than Key West. I believe this 28.3% increase is the highest % increase of all the properties' MF's available so far. Breakdown as follows:

2 BR SVV Bella - 2010
Operating Assessment - $884.75
Replacement Reserve - $134.77
Estimated Real Estate Tax - $174.67
Total - $1,194.19
2009 Total - $930.81
Increase - $263.38 - 28.3%

2 BR SVV Key West - 2010
Operating Assessment - $764.50
Replacement Reserve - $141.18
Estimated Real Estate Tax - $157.05
Total - $1,062.73
2009 Total - $936.39
Increase - $126.34 - 13.5%

-tim

Is Bella a newer phase than Key West? It's possible that Starwood dropped/reduced the developer contribution they make to keep fees artifically low while in the sales phase. They don't tell you about that little joy at the sales presentations either!

 

[Stefa]

Is Bella a newer phase than Key West? It's possible that Starwood dropped/reduced the developer contribution they make to keep fees artifically low while in the sales phase. They don't tell you about that little joy at the sales presentations either!

Bella is older than Key West. Maybe the developer contribution is keeping the operating expenses lower at Key West...?

Boy, am I glad I sold my Bella. I owned EOY so was stuck with the SVN fee every year. Can't imagine paying that much in dues for a biennial.

 

[bullroc3]

Just checked the Broadway Sheraton Plantation -

Last year (2009) with the $109 SVN Fee - $834.77

2010 with the $109 SVN Fee - $995.62

$160.85 increase - YIKES!!

19.2% increase

 

[Bucky]

I got a little upset with the 21% increase at SBP and wrote Starwood an email. I just was notified of this message in my Star Central account:

Dear Mr. ,

Thank you for contacting Association Management.

There has been an increase of 21.5%/$69.15 from 2009. The Board of Directors and the Association reviews and analyzes all avenues to achieve the lowest possible dues increase. Their goal is to bill out fees without sacrificing the level of amenity that you as an owner have come to expect. They must also ensure the resort continues to meet certain brand standards.

Many items in the annual operating budget are not fixed expenses and are outside of the control of the Board of Directors. These items include: utilities, real estate tax, insurance, and supplier cost. This may cause a change in the amount you are billed annually.

Unfortunately your Association has been adversely impacted by the current economy. The increase in owner delinquency has created a shortfall in the Association's cash flow. The Board will continue to reinforce collection efforts to recover lost funds. Those owners who default on their payment will loose their usage benefits for the year. We will also continue to send delinquent notifications, followed by property liens, and foreclosure as a last resort. In addition the Board of Directors has implemented cost savings initiatives such as replacing the paper placemats and napkins to minimize any shortfall.

Being a condominium, all Owners share the responsibility for ensuring that the Association meets these obligations. As the economy improves and delinquencies eventually decline, allowances will be re-evaluated for a potential reduction. However for now, we must all share in ensuring expenses are fully paid and uncollectible accounts provisioned.

We hope this gives you a better understanding of the situation. Should you require further assistance or have additional questions please do not hesitate to contact us back.

Telephone:

Toll-Free 1.888.986.9637
Direct 407.903.4635
United Kingdom 0.800.89.5065
Mexico 001.800.847.8262
Japan 0053.113.0318
All Other Countries 407.903.4640

Email: associationmgmt@starwoodvo.com

Fax: 407.418.7771

Hours of Operation (Eastern Time zone):
Monday– Thursday, 8:00 a.m.– 9:30 p.m.
Friday, 8:00 a.m.– 5:30 p.m.
Saturday- Sunday, Closed

Sincerely,

Wilbia Santiago
SVO Management Inc.

 

[tschwa2]

20% increase due to delinquencies

Wouldn't it be nice if we go either 20% of our alloted staroptions or 2 extra weekday days credited to our accounts since we are paying for the time? :hysterical:

 

[K2Quick]

Wouldn't it be nice if we go either 20% of our alloted staroptions or 2 extra weekday days credited to our accounts since we are paying for the time? :hysterical:

That's a fantastic idea that has zero chance of ever making it into production. Seriously, if you are paying for some schlub's maintenance fee, why can't you use his space?

 

[DeniseM]

That's a fantastic idea that has zero chance of ever making it into production. Seriously, if you are paying for some schlub's maintenance fee, why can't you use his space?

Because then Starwood wouldn't get to rent it, and pocket the money!

 

[James1975NY]

SBP - 1Br Dlx

2010 Operating Assessment $325.56
2010 Replacement Reserve 65.59
Total 391.15 (+21% Increase)

SBP - 2Br LO

2010 Operating Assessment $918.20
2010 Replacement Reserve 184.98
Total $1103.18

Are these for the new phase (palmetto) or original? Or are they all the same?

 

[gregb]

I know it is a hard pill to swallow, but the HOA only generates income from the MF and it has to pay all the bills each month. That is a fact of life with a condominium. If some owners default on their MF, the bills still need to be paid. So the rest of us end up paying more. There is really no other place for the HOA to get the money. They can try to cut costs, but I imagine that everyone would be unhappy if they started closing pools, or not cleaning the grounds, etc. The HOA should make every effort to collect the delinquent MF, and they say that they are. Either you believe them, or you don't.

It is true that the developer can kick-in some extra $$ to reduce the MF, but that is only likely at resorts with active sales. That is one way they can keep the MF low during the developer sales period. Guess that means that part of the high developer sales price is used to subsidize the MF for early purchasers. Interesting thought.

Greg

 

[K2Quick]

I know it is a hard pill to swallow, but the HOA only generates income from the MF and it has to pay all the bills each month. That is a fact of life with a condominium. If some owners default on their MF, the bills still need to be paid. So the rest of us end up paying more. There is really no other place for the HOA to get the money. They can try to cut costs, but I imagine that everyone would be unhappy if they started closing pools, or not cleaning the grounds, etc. The HOA should make every effort to collect the delinquent MF, and they say that they are. Either you believe them, or you don't.

What makes me skeptical is that Marriott MFs are coming in with increases of two or three percent. Even the Marriott Maui locations only experienced a 4.3% increase. What's Marriott doing differently that Starwood is not? I'm guessing their pools are still open and their grounds are still being taken care of. Luckily the Starwood unit I own "only" experienced an increase of 7.3%.

 

[Troopers]

What makes me skeptical is that Marriott MFs are coming in with increases of two or three percent. Even the Marriott Maui locations only experienced a 4.3% increase. What's Marriott doing differently that Starwood is not? I'm guessing their pools are still open and their grounds are still being taken care of. Luckily the Starwood unit I own "only" experienced an increase of 7.3%.

I'm with you...very suspicious.