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What Happens When You Stop Paying Timeshare Maintenance Fees?

What Are Timeshare Maintenance Fees?

Maintenance fees are an essential pillar of the timeshare industry. These time-sensitive fees, intended for regular upkeep, upgrades, and special assessments of a timeshare property, often become unpayable for unsuspecting owners. 

This article breaks down precisely what timeshare maintenance fees are and why they are necessary. It also covers many frequently asked questions about maintenance fees and how to stop paying them legally. 

Why Do I Have to Pay Maintenance Fees?

When someone purchases a deeded timeshare, they agree to pay annual maintenance fees. Many timeshare owners are unaware their agreements are signed in perpetuity, which means their maintenance fees never end.

For this reason, it can be tough to cancel a purchase agreement with a timeshare developer. Outright refusal to pay your timeshare fees can lead to unforeseen consequences such as foreclosures, credit score damage, and run-ins with collection agencies.

What Do Timeshare Maintenance Fees Cover?

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Timeshare maintenance fees have many purposes. While each timeshare company is different, here are a few of the most common applications of maintenance fees:

Unit Upgrades & Maintenance

You are responsible for regular maintenance and upkeep of your unit if you own a timeshare. Like a house or car, a timeshare obligation also requires extra costs to maintain or upgrade throughout the year. Examples of timeshare maintenance include new bedding, new lighting, new flooring, upgraded appliances, A/C, and heating services.

Resort Beautification

Maintenance fees also often go towards maintaining the appearance of a resort. Lawn care, tree pruning, shrub trimming, and many other methods of sustaining a pleasant vacation view go into these annual fees. 

New And Updated Amenities

Are you excited about the new pool at your timeshare resort? Well, this wasn’t a free amenity. You and the other timeshare owners helped pay for it. Maintenance fees help the resort fund new and improved amenities such as gyms, parks, pools, spas, and other attractions.

In Case of Emergency Funds

Along with these popular uses, maintenance fees also help resorts during emergencies. When inclement weather strikes and affects the resort, these fees assist in repairing the property damage.

Frequently Asked Questions

There is undoubtedly a lot of confusion for a timeshare owner regarding maintenance fees. The timeshare industry permits questionable sales tactics that often leave out pertinent information about these fees.

Nonetheless, here are the answers to some essential maintenance fee questions:

How Much Do Timeshare Maintenance Fees Cost?

Timeshare maintenance fee costs vary. So your price will depend on your particular resort company, your timeshare unit type, and how long you've owned your unit. It's important to remember that maintenance fees are split and paid for amongst all the owners.

According to the American Resort Development Association (ARDA), in 2019, the average cost of annual maintenance fees was $1,000 and rising. ARDA releases its report on the timeshare industry every few years, so expect an update on these figures soon.

When are Maintenance Fees Due?

When maintenance fees are due can vary, but the industry standard is an annual due date. In rare occurrences, some resorts have requested fees to get billed monthly, quarterly, or even biannually. However, generally, you can expect an annual maintenance bill.

It's also worth noting that maintenance fees typically increase around 5% each year. So, be prepared for these price increases. But remember, too many missed payments can lead to unpleasant financial repercussions.

What Happens If I Default on a Timeshare?

Timeshare purchases involve legally binding agreements. You default on your timeshare ownership if you stop paying any related charges or fees. 

Defaulting on your timeshare agreement will initially result in your case being sent to a collection agency and might eventually lead to a foreclosure. However, there are also long-term effects. Your credit report can carry a negative mark for up to seven years. This mark could cost you a mortgage or car loan in the future. It will also make it more challenging to receive reasonable rates on any future credit.

How Can I Put An End To Timeshare Maintenance Fees?

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You probably wonder how you can stop paying your timeshare maintenance fees without facing harsh consequences. Timeshare agreements can be tricky to get around. These agreements leave little wiggle room for clients. They're considered a lifetime agreement and can be problematic for those hoping to escape.

There have been limited opportunities for timeshare owners seeking refuge from this industry. The resale market used to be the only option. However, reselling is often impossible. Fortunately, there are other options now. Roughly a decade ago, timeshare cancellation companies entered the scene.

Can I Leave My Timeshare?

Timeshare cancellation companies have finally given timeshare owners a way out. Owners who have been deceived into unwanted timeshare purchases now have a chance to end their agreements. Consider a cancellation company if you're interested in terminating your timeshare agreement.

However, be warned there are scammers in the cancellation industry, too. Only work with companies that have a proven track record with timeshare cancellations. Do your research before paying for any of these services.

Timeshare Exit Company

Are you looking for a trustworthy timeshare exit company to help you? Wesley Financial Group, LLC ("WFG") could be an aid for you. This company has proven itself to be a reliable cancellation option. They’ve already helped over 16,000 families cancel their agreements and are a proven leader in the industry. However, if you want to end your timeshare, don't stop paying your maintenance fees. First, speak with the timeshare experts of WFG to see your exit options.

Wesley Financial Group, LLC, and its affiliates, successors, or assigns are not lawyers or a law firm and do not engage in the practice of law or provide legal advice or legal representation. All information, software, services, and comments provided on this site are for informational and self-help purposes and not intended to substitute for professional advice, legal or otherwise.

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