Timeshare maintenance fees: what keeping your timeshare really costs
Maintenance fees keep coming whether or not you take the trip. They outlast the loan and tend to rise every year. Here is how they work, what happens if you stop paying, and a calculator for your own numbers.
Timeshare maintenance fees are yearly charges that pay for running the resort. They continue after the purchase loan is paid off, usually rise over time, and can come with one-time special assessments. Stopping payment can lead to collections, credit damage and foreclosure, so plan an exit before you stop paying.
What maintenance fees cover
A useful gut check: add up what you paid in fees over the last few years, then compare it to what those same vacations would have cost if you had booked a hotel or rental instead.
Every owner pays a share of the resort's operating budget, set each year by the owners association or the management company. That budget typically covers:
- housekeeping, staff and front desk
- utilities, insurance and property taxes
- furniture, repairs and renovations
- a reserve fund for big future projects
- management fees to the company that runs the resort
Why they keep rising
Costs like insurance, labor and taxes rise over time, and the fee follows. Aging buildings also need major work, which can mean a special assessment: a one-time charge on top of your regular fee. Most contracts give owners little or no say over either.
Calculator: your fees over time
Enter your current yearly fee and an assumed yearly increase to see what keeping the timeshare could cost. The starting values are examples; replace them with the numbers on your statement.
Estimate only. It does not include special assessments, loan payments or travel costs.
What happens if you stop paying
Late fees and interest build up, the account can go to collections and be reported to credit bureaus, and for deeded ownership the association can foreclose under state law. Use one of the legitimate exit routes instead.
If you already fell behind, contact the resort before the account goes to collections and ask whether a deed-back or hardship program is available. Getting current first often opens more exit options.
FAQ
Why do timeshare maintenance fees go up every year?
Fees cover resort operations, staffing, insurance, taxes, utilities and reserves for repairs. As those costs rise, the owners association raises fees. Owners can also face special assessments for major repairs.
What happens if I stop paying timeshare maintenance fees?
The resort or association can add late fees, send the account to collections, report it to credit bureaus, and for deeded timeshares, foreclose. You may still owe the balance after a foreclosure in some cases.
Do maintenance fees end when the timeshare is paid off?
No. Paying off the purchase loan ends the loan payments, but maintenance fees continue for as long as you own the timeshare, and in many contracts that means indefinitely.
Can my heirs inherit timeshare maintenance fees?
A deeded timeshare can pass to your estate along with its fees. Heirs can often decline an inheritance, but the rules and deadlines vary by state, so they should get advice before accepting anything.
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