The idea of maintenance fees makes sense. They are mandatory fees that the resort management company or homeowners association charges its owners for the upkeep of the timeshare property. These fees are usually defined as covering property taxes, utilities, insurance, and any other maintenance expenses. But, they also need to meet the needs of future expenses like office furniture and appliances.
The amount of the fee varies widely. Some fees are as little as a few hundred dollars a year, while others are several thousand.
Maintenance fees are generally levied on annual basis, however certain resorts may levy them monthly or biennially. What you may not be told is the extent to which the annual maintenance fee will increase over the years. What may be affordable now may not be with double-digital percentage increase every year. And for new resorts, what you may not realize is that when a developer is in control, maintenance fees may be temporarily subsidized by the developer as a marketing tool while there is sales activity. After the homeowner association takes over, fees may quickly rise to unsubsidized levels.
However – this is the big problem: timeshare operators also may force owners to pay unexpected but obligatory special assessment fees.