Is it possible for Timeshare fee to increase???

[Cherry]

Hi all, I have timeshare for a long time. During covid, my timeshare company wants to increase the annual fee. In 2020 we don't travel because of covid. Is it reasonable for them to increase the fee when travel at this time is a restriction. My timeshare company is in United States and I am from Canada. United States has lots of covid cases so how can we travel at this time? Please kindly help. I try contacting them by email and they are not able to reduce the price for us. Any suggestions would greatly appreciate it? thanks.

 

[DaveNV]

Maintenance fees are generally adjusted every year, based on budget, expenses, tax increases, and overall cost of providing the timeshare. Covid has created a lot of unexpected expenses, even if the resorts have been mostly unoccupied. So if you're asking how they can raise the rates after a year of essentially non-use, it's because the costs have been ongoing, notwithstanding Covid. As costs have increased, so maintenance fees will also increase. You're a partial owner at that resort, so you share in the costs of them providing it.

Dave

 

[pedro47]

To the OP, Welcome to the TUG website. Where “Knowledge Is Power,“ by Bacon.

The post above is short and concise, but very true. Just read the first sentence again, posted by DaveNV.

Your timeshare maintenance fees will increase yearly. IMHO.

Please enjoy your timeshare vacation experiences.

 

[pedro47]

To the OP, please read the “Help & Advice” section above to gain more Information and Knowledge about owning a timeshare.

Good Luck.

 

[Janann]

If this is the first time your annual fee has increased, you are very lucky. The maintenance fees at many timeshares go up every year. The timeshare company has to pay for utilities, property taxes, landscaping, building maintenance, etc, and these items can be expected to go up in price every year.

 

[AwayWeGo]

It is notable when a timeshare maintenance fee holds steady.

It is unheard of for a timeshare maintenance fee to go down.

It is all too common for timeshare maintenance fee increases to be inadequate, triggering shortfalls in the Reserve Fund & leading to a dreaded Special Assessment which all owners have to pay in addition to increased maintenance fees.

So it goes.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[Janann]

It is unheard of for a timeshare maintenance fee to go down.

Disney went down slightly this year -- miracle of miracles.

 

[AwayWeGo]

Disney went down slightly this year -- miracle of miracles.

That's the most unheard of thing I ever heard of.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[pedro47]

Disney went down slightly this year -- miracle of miracles.

I thought Disney owners loss some Disney benefits this year.

 

[Passepartout]

Is it possible for Timeshare fee to increase???
Not only possible. Virtually guaranteed. Seems to me that my contracts have a statutory annual raise of 'up to' 5%. You can bet they always take it.

Jim

 

[TheHolleys87]

Disney went down slightly this year -- miracle of miracles.

The per-point MFs for 2021 did not go down relative to the MFs for 2020, in fact they increased. I forget what the % increase (varied by resort) was.

The total bill for 2021 did go down relative to the total for 2020 because due to the prolonged closure, there were some savings, and instead of putting the excess collected into reserves, DVC issued a credit which was subtracted from the 2021 MFs. There was also a credit for overpaid property taxes.

A clear explanation of this can be found in DVCNews:
https://dvcnews.com/dvc-program/fin...ers-to-receive-credit-for-excess-dues-in-2020

2021 Annual Dues Posted to Members’ Accounts | DVCNews.com - The essential Disney Vacation Club resource!

Disney Vacation Club has updated members' accounts to include the amounts payable for 2021, along with credits to be applied from the prior year. DVCMember. com has been updated to reflect the

dvcnews.com

 

[LannyPC]

Hi all, I have timeshare for a long time. During covid, my timeshare company wants to increase the annual fee.

How long have you owned this timeshare? In all the years that you've owned it, have you not noticed an annual increase in the maintenance fees?

By the way, Covid-19 has little to do with the resort's operating expenses. Although there might have been fewer travelers using the facilities because of less travel due to Covid, there were also likely fewer renters bringing in some income for the resort which the resort usually uses to defray from the operating expenses.

 

[dioxide45]

How long have you owned this timeshare? In all the years that you've owned it, have you not noticed an annual increase in the maintenance fees?

By the way, Covid-19 has little to do with the resort's operating expenses. Although there might have been fewer travelers using the facilities because of less travel due to Covid, there were also likely fewer renters bringing in some income for the resort which the resort usually uses to defray from the operating expenses.

Depending on the timeshare system/com[any, the HOA sees no money from the rental of weeks. Unless those weeks are actually owned by the HOA. However, many Marriott HOAs had been selling back foreclosed weeks to Marriott. So they didn't really hold anything that they could make rental income from. Marriott would rent it out instead and they would pocket the income.

Due to COVID, resorts should have seen a lot of savings in labor costs as they laid off a lot of staff. Not as many guests, means not as many rooms to clean, which means not as many housekeeping staff. Same goes for the activities staff. That said, we didn't see much of a decrease in our Marriott MFs in 2021, though they did go down a little.