Can anyone share experience with bad management?

[nsstampqueen]

After doing quite a bit of research - both on the internet in general and here on TUG, it seems that the resort that we really love (we've stayed there before by renting from owners) has had horrible management. The internet is full of scam stories from owners going back a decade or more. The resort has now been taken over by another organization who seems to be doing serious renos, etc. and the place is looking wonderful by the reviews on Trip Advisor.

My question is - should I be concerned about buying into this place (Free TS through TUG) that there could be consequences to everyone who owns if others - 1) Receive some kind of settlement from a Class Action suit that's been rumoured, 2) walk away from their ownership (some Canadians seem to have done this as they've been told there's no way that it can affect their credit here in Canada), or 3) for not paying the extraordinary assessments last year and getting Profeco involved?

I really am interested in this TS, but don't want to be stuck with someone else's problem. I can rent a friends unit (for more than the MF I would pay on this TS) instead of owning, but I'd rather own (and this one is fractional instead of RTU and comes with a bonus week each year or two).

Are there other issues I should be worried about with this type of situation? I haven't posted the resort name, but if needed I can (or you can read my other posts and see exactly where I mean).

 

[nsstampqueen]

Oh and also...

Also, what happens when the resort is sold to someone new? It is my understanding that the deeds are transferred to the new management/holding company (whoever...) and there are really no changes that way - but I did notice today that if you try to book this resort through a travel agent only two sizes of rooms are available - the studio size and a 1 bdrm (this resort previously had three sizes - studio, 1 bdrm and 2 bdrm lock-off). I also noticed a bit of a discrepancy about how many rooms the resort has - the resort website says XX (something like 102), the travel website says 70'ish, and somewhere else I read as low as 50-some. I realize they are renovating, but this resort had multiple buildings the last time I was there. perhaps they have closed off the old building, but the room count just seems off???

Has anyone had to deal with the situation of their home property being sold?

This is a little frustrating, as I've asked my questions, learned all I can about the +/-'s of TS ownership, finally found the right one (maybe/maybe not) and now I find there's all these other "variables" out there. Is this something that can happen to any resort at any time??? Or am I just being paranoid and should just shut up, take the FREE TS and enjoy the resort we've enjoyed for years???

 

[timesharegirl101]

My input

I personally have not had a experience with bad amangement but have been in the resale industry for several years and heard from owners who have had a bad experience and know about a few resorts that are known for it. I have worked with many owners and resort over the last 5 years and very experienced with a good amount of them.

You are doing the right thing buy looking into the resort first to make an informed decision, you certainly do not want to end up with any issues. Purchasing a timeshare resale is a great investment especially if you travel often. I can say that if they are renovating the resorts than there is most likely going to be a special assessment, if there isn't one already, and owners may be looking at an increase in maintenance fees. Now for any of your other concerns if I knew which timeshare you were tlaking about I could probably answer your questiosn better, and feel free to ask me any questions you have.

 

[DeniseM]

timesharegirl101 - Welcome to TUG!

Commercial members are welcome on TUG, and we appreciate their input, but just so you know, any kind of self-promotion, or advertising is not permitted on TUG.

More info. - http://tugbbs.com/forums/tug_rules.php

 

[timesharegirl101]

I read it all just here to help

Yes I am aware of the rules, I am just here to give adivice and help current and future timeshare owners. Thanks

timesharegirl101 - Welcome to TUG!

Commercial members are welcome on TUG, and we appreciate their input, but just so you know, any kind of self-promotion, or advertising are not permitted on TUG.

More info. - http://tugbbs.com/forums/tug_rules.php

 

[DeniseM]

Perfect! So many people don't read the posting rules - thank you for doing so!

 

[nsstampqueen]

More Information

The property in question was formerly known as Playa del Sol Los Cabos - now operating as Bel Air Collection Los Cabos. We love it, we've stayed there renting a friends timeshare, so we know the property/location, etc. It was getting a little tired looking, due to poor management/maintenance, etc. Fees right now are a little under $500 for a studio - any week of the year, fractional ownership.

There were some issues with previous management, the year after the swine flu hit they closed for 6 months or so and put people up in Cabo instead, not a big deal, but it worried me when it happened. The previous year most resorts in the area were running about 30% occupancy, so that was probably a major contributing factor.

When Bel Air took over there were some special assessments, etc. and fees that were charged which seems to have angered some owners. There is some talk about a class action lawsuit against the Playa del Sol group - not the Bel Air people - so not sure what difference that would make - are the new owners responsible for some of this??

I guess the bottom line for me is, we already own a timeshare (transferred for free from my dad) in Florida that we will only use for trading into the Los Cabos area - luckily they are both able to be traded by SFX so that will work for us; that should get us one week a year (maybe a bonus week every now and then); and I am working out a deal here on TUG to acquire a free timeshare at Bel Air Collection, I just don't want to end up with a BIG problem because of the previous management. What happens if the other owners win a Class Action suit against the resort? How might it affect us? If the property ends up renovated as nicely as it's supposed to then we would end up owning a beautiful piece of Mexico (even if it is just one week a year!). Although the seller and I are proceeding slowly, I've asked a ton of questions about the timeshare that I'm waiting to hear back on - things like under the old management you had access to 3 or 4 different resorts in different places with no extra fees to exchange your week into, can you still do that; how much are upgrade fees - these are spelled out in the contract from the old ownership and I want to know if this will be honoured in the new one, etc.

Any advice you can help with would be appreciated!

 

[timesharegirl101]

Should not be an issue

I am familiar with that situation. I know the owners are upset and trying for a class action law suit against the original management company but there really isn’t much they can do against a special assessment especially by the new management company for upgrading the resorts. Every resort does that and resort changing managements companies happens often in the timeshare industry. The new management company would not be responsible but it sounds as though they were the ones who charged the fees anyway to upgrade the resorts. I really do not think that the law suit if it even gets anywhere it will have any affect on you. I would definitely make sure all the fees have been paid though, and then you should be okay.

Now as far as trading for the other resorts within the Bel Air collection like you were able to do under the original Playa del Sol group that will be at the discretion of Bel Air, although I would say they should keep that policy the same. Now with you purchasing resale I would say that anything honored in the original contract should carry over for you but again this is all at the resorts discretion. What I would do is call owner services at the resort and ask them those exact questions regarding the ownership and the fees. When you call just let them know you are in process of inheriting a ownership through an aging family member and then ask them your questions. This has always worked for me getting the most answers out of a resort. Hope this helps

 

[timeos2]

Buying into a situation you KNOW is a problem for existing owners is asking for trouble. Unless you plan to be an extremely active advocate for change there you too will be caught up in the mess.

Regardless of how much you like the resort I would avoid it until you are sure things are fixed OR you're willing to deal with it as is. You are warned but still want to dive in. Not a good choice IMO. It is being given away for a reason. In this case it's not that the owner is older or has suffered personal life changes and has to give it up but it is a KNOWN problem with a key part of the resort itself - the management. There almost couldn't be a bigger red flag.

 

[nsstampqueen]

None of the correspondence between the owner and I have led me to believe that he is a dissatisfied owner. He has stated they don't use it, that's all. My concerns stem from reading on the internet, and here on TUG, that there are dissatisfied owners who are trying to get a class action suit going. I have several friends who are long time owners here, they are happy with the changes, they weren't upset by the special assessment and are simply glad to have things being done, new buildings, renovations, etc. taking place that the previous management neglected. From the postings I've been reading, very few of the unhappy people are actually from the Los Cabos property, more from other locations under the same management. I know there was one owner who was upset that the resort closed for several months one year - but like I said in an earlier post, most resorts in the area were running 30% occupancy at that time - we stayed at a Crowne Plaza in November 2008 and over half the resort was closed off due to low vacancy, the lighthouse bar area was closed off, there was little to no entertainment, no organized activities, etc. the whole area was really suffering with low numbers - the fact that the next year the Playa del Sol was closed for so long was sad but not totally unexpected. This hasn't happened since, and I believe it wasn't long after this that the new ownership happened.

Thanks for the suggestion to check on the payment of the assessment - I hadn't done that - my understanding is that it happened in 2011 and would have to have been paid at the beginning of the year. I have confirmed that MF for 2012 are due in February - the seller is investigating right now whether the fees would be due on transfer or in Feb. I will ask about the special assessment just to be sure what I will have to pay for MF (he is confirming the amount so I guess that would indicate where things stand as well).

As long as the resort can't go bankrupt from the class action suit, which it doesn't sound likely - how can they be held responsible for something that the contract states is allowable i.e. special assessments due to major renovations and new construction. Thanks again for the info!

 

[Karen G]

I think I would hold off on this timeshare, especially since it is in Mexico and there are many known problems with the company. I own in Cabo, so I'm not opposed to vacationing there--I actually love it--but this particular resort company seems to have a lot of issues.

There are so many other timeshares available for free or very little money that might be better. If you are successfully able to trade in, why not just keep on doing what you're doing without subjecting yourself to ongoing obligations and risks.

 

[timeos2]

None of the correspondence between the owner and I have led me to believe that he is a dissatisfied owner. He has stated they don't use it, that's all. My concerns stem from reading on the internet, and here on TUG, that there are dissatisfied owners who are trying to get a class action suit going. I have several friends who are long time owners here, they are happy with the changes, they weren't upset by the special assessment and are simply glad to have things being done, new buildings, renovations, etc. taking place that the previous management neglected. From the postings I've been reading, very few of the unhappy people are actually from the Los Cabos property, more from other locations under the same management. I know there was one owner who was upset that the resort closed for several months one year - but like I said in an earlier post, most resorts in the area were running 30% occupancy at that time - we stayed at a Crowne Plaza in November 2008 and over half the resort was closed off due to low vacancy, the lighthouse bar area was closed off, there was little to no entertainment, no organized activities, etc. the whole area was really suffering with low numbers - the fact that the next year the Playa del Sol was closed for so long was sad but not totally unexpected. This hasn't happened since, and I believe it wasn't long after this that the new ownership happened.

Thanks for the suggestion to check on the payment of the assessment - I hadn't done that - my understanding is that it happened in 2011 and would have to have been paid at the beginning of the year. I have confirmed that MF for 2012 are due in February - the seller is investigating right now whether the fees would be due on transfer or in Feb. I will ask about the special assessment just to be sure what I will have to pay for MF (he is confirming the amount so I guess that would indicate where things stand as well).

As long as the resort can't go bankrupt from the class action suit, which it doesn't sound likely - how can they be held responsible for something that the contract states is allowable i.e. special assessments due to major renovations and new construction. Thanks again for the info!

Not saying the current owner wanted out due to the ongoing issues - but you know now they exist. It sounds like you're trying to convince yourself to take it - think about it VERY carefully. Wait a month. If you STILL want it dive in but don't rush. You can rent cheaper than own & not have a long term obligation. Or, if you'll REALLY use it - go ahead & enjoy. It's only money after all.

 

[ronparise]

I bought a week (actually 2 weeks) at a property that had just been sold. Better stated; the unsold units were sold to a new company and that new company got the management contract for the whole place

The first thing the new management company did was to close the place for a year for renovations and impose a nearly $1600 special assessment. They also raised the maintenance fees for the coming year by over 10%. Actually the maintenance fees stayed the same...it was the amount paid into reserves that went way up

There are some owners that think the old management was bad, because they had a deferred maintenance approach to things and others that think the new management is bad because they are spending money like a druken sailor on leave..

So to answer the op's question....There are lots of things a management company can do that might be considerd bad management, one is not properly funding a reserve account, another would be ignoring maintenance needs and letting a place fall apart. and yet another might be over improving a property to a standard beyond what the owners want or can reasonably afford

If you have any question about the management of a resort you are considering, Id move on... keep looking

 

[nsstampqueen]

Or, if you'll REALLY use it - go ahead & enjoy. It's only money after all.

That for me is the kicker - we really enjoy this place. For us it has way more pluses than minuses - we love the location, we love the beach, we love the rooms, etc. Yes we could go and stay at other resorts but we really happen to find this one to be the best for what we are looking for. For instance, it's only a short walk to the Mega grocery store - and a $5 cab ride back with a load of stuff. It's a nice walk into town, and the bus stop to Cabo is just up the street too. I could go on with all the pluses, the only concern I really have is getting stuck with something that's going to cost a lot in the next year or two in unexpected fees because of old management. I have no concerns as of yet with the new ownership, haven't heard of anyone complaining about the changes going on at the resort - just that they weren't expecting the special assessment - to me this is because the old ownership didn't let people know what was going on - and the new management didn't bother to tell anyone ahead of time either. According to stories I've been reading on the boards here it is quite common when receiving a special assessment for it to come out of the blue like it did, so nothing unusual there either.

If someone out there wants to rent me a week at this resort for less than $500 I will take you up on it - but even my friends charge me $750 for a week - which is part of the reason I am looking at picking up a unit myself, with MF in 2011 of $495 I would be saving money, and we have a week every year to go someplace we love to be.

If it sounds like I am trying to convince myself of this, I am coming across wrong. I was really just trying to figure out if things like Class Action suits can affect other owners for years to come etc. I have no real experience with timeshares so am just trying to learn all I can. Other than making sure that the previous special assessment is paid, if it sounds like the suit is not going to affect me then I'm not so concerned any more.

As a side note, the seller has already agreed that if MF are due on transfer we will hold off until the new year to do it so I don't have to come up with fees in December (they're not due until end of February otherwise) - so I do have some more time to consider things.