Timeshare Maintenance Fees
Maintenance fees are the yearly costs paid by the owners collectively to maintain and run the vacation / timeshare property, pay insurance, utilities, update appliances and furnishings, and pay for annual taxes. Either the Home Owners Association usually collects the maintenance fees, or the Management Company appointed to the resort.
The cost of an annual Maintenance Fee will vary, and is dependent on many different factors i.e., the resort in question, the size of unit owned, the facilities on offer, both internal to the unit, and external through the resort amenities. The operational costs are divided among the owners. There is also a provision (see Sinking Fund) to build funds for non-recurring costs that need periodic replacement, and other sporadic costs as normal deterioration occurs.
Maintenance fees are intended to cover all costs for the operation of a resort. In some cases while there is an active sales program, many developers will subsidise the maintenance fees as an incentive to promote sales. However, once a resort has sold most of its inventory and a Home Owners Association or Committee has taken over, the maintenance fees may rise sharply to unsubsidised levels.
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