15 Feb What are maintenance fees?
Inquiring Minds Want to Know
WHAT ARE MY MAINTENANCE FEES PAYING FOR?
Maintenance fees are made up of operating assessments and replacement reserve assessments. Payroll and benefits usually make up 25%-40% of the budgets and are a part of the functional expenses rather than being considered a separate component. General budgeting categories are:
• Bad debts
• Management fees
• Repairs and maintenance
• Misc. items such as depreciation, security, transportation and other unusual expenses.
*Sometimes real estate taxes will be found on your maintenance fee bill. Other resorts, depending on their location, bill the real estate taxes separately.
WHAT WOULD HAPPEN IF I JUST STOPPED PAYING MY MAINTENANCE FEES?
I am not an attorney and cannot dispense legal advice. That being said, purchasing a timeshare is a legal real estate transaction, just like buying or renting a home. My experience has shown it to be risky to let a property go into default because many resorts will aggressively pursue you with collections and creditor harassment, threatening letters and foreclosure proceedings, which could wind up costing you money in the long run and wind up ruining your credit. Readers of this column know Timeshare Oasis has options for owners to divest themselves of their ownership when circumstances have changed. Call me or email Info@TimeshareOasis.com
WHAT ARE YOUR THOUGHTS ON HIRING A TIMESHARE ATTORNEY TO GET OUT OF AN OWNERSHIP?
A September 2016 article by the largest online marketplace for timeshares provided the following information. “Two caveats about timeshare lawyers: First, they cannot offer guarantees, so it is possible an owner could pay an upfront fee and still not get out of his or her contract. Second, it is not easy for the average timeshare owner to determine legitimate lawyers from those who just take advantage of unsophisticated owners. Major timeshare companies, moreover, are highly suspicious if not outright hostile to timeshare exit attorneys. So before your hire an attorney,
• Do your research and demand references.
• Consult more than one firm.
• Walk away from outfits that guarantee outcomes.
A good way to review an attorney’s credibility is to check out actual lawsuits that they have handled. Legitimate law firms will post their cases on their own websites.”