Pay the maintenance fees or exit the timeshare contract
Owners of timeshares are required to pay timeshare maintenance fees. The timeshare resorts revise the rate of maintenance charges every year and thereby increase the burden of the timeshare owners. Though the timeshare owner visits the place hardly once in a year, he/she has to pay a hefty amount every year as maintenance fees. Every year the amount payable will be 4 – 5% more than that of the previous year. The timeshare management company collects either yearly or monthly the maintenance fees against cost of maintaining the timeshare property. By way of imposing the maintenance fees the timeshare management company passes on the entire cost of maintaining and running the resort to the timeshare owners. Apart from the administration expenses, property insurance expenses, record keeping expense, etc., the maintenance fees collected from the timeshare owners include expenses related to maintenance of the property and keeping intact the various amenities such as swimming pool, equipments in the gym and maintenance of the golf course. The annual maintenance fee charged by timeshare management companies is around $ 1000 and every year there will be an increase of about 4%.
Legal actions against defaulters
The timeshare management companies charge maintenance charges at a lower rate initially. But once the initial sales is over they make steep hikes every year without intimating the timeshare owners in advance. By way of drastically increasing the maintenance charges, the timeshare companies reap huge income every year. In case the timeshare owner fails to pay the maintenance fees, the arrear amount will be considered as a debt and the timeshare management will take legal action to recover the money from the timeshare owner. In case the timeshare owner fails to respond to their phone calls and letters they will consider legal options such as foreclosure and other methods. Being a debt, the timeshare owner will have no other option but to pay the amount and clear the debt.
Timeshare owners cannot ignore the debt
Timeshare owners cannot ignore their commitment to pay the maintenance charges and so long as a person owns timeshare he/she has to pay the maintenance fees. One cannot simply walk away from the contract or avoid paying the maintenance charges. In case a timeshare owner stops paying the maintenance charges, either the timeshare company or the association of timeshare companies will entrust the task of recovering the amount with a collection agency who will be authorized to proceed legally against the timeshare owner. This will badly affect the credit score of the timeshare owner. Time share maintenance fees are not eligible for tax deduction.
Exit your timeshare contract
Timeshare owners who cannot afford paying the maintenance fees every year and also are not in a position to refuse to pay the maintenance charges can get the contract terminated and get relief from the financial burden. They may approach a reliable company that provides timeshare cancellation services and with their help they can get their timeshare contract cancelled. This is the safest and the best way to get out of the contract and get relieved from paying the maintenance charges every year.