When you sat through the timeshare sales presentation, the staff probably mentioned annual maintenance fees. Maybe you weren’t happy about paying nearly $1,500 per year, but you understood and accepted the cost. Now, you’re paying over $2,000 for the same thing and feeling ripped off. Why do timeshare maintenance fees increase, anyway? And is there any way to make it stop?
The short answers are that maintenance fees go up every year by design, and no, it probably won’t stop unless you exit timeshare ownership altogether. One of the main drivers of income for timeshare companies is the recurring payment of timeshare maintenance fees, and developers are always seeking ways to increase profits year over year. The easiest way to do that is with fee increases.
So, if you’ve just opened an invoice and found your maintenance fees going up this year, it helps to learn a bit about those fees, what they’re used for, and what you can reasonably expect in the future. This guide will help you make more informed decisions about your ownership. As a leading timeshare exit company, Centerstone Group has decades of experience in the timeshare industry, and we can give you information and options that timeshare developers will not.
What Are Timeshare Maintenance Fees For, Anyway?
The problem of rising maintenance fees is a timeshare complaint as old as timeshares themselves. Though an explanation doesn’t necessarily excuse these fees or mean you should be okay with them, it can help if you understand what this money is being used for.
A timeshare owner’s association is a bit like an HOA for a timeshare resort. In theory, at least, a group of owners would get together, collect money from other owners, and use it to improve the properties in which they hold interests.
The collected funds would be used for operational costs, including property repairs, upgrades, landscaping, and general property upkeep. To the extent that timeshare resorts need reserves and property insurance, those amounts are also taken from maintenance fees.
In practice, timeshare resorts are not managed directly by owners but by timeshare management companies hired to manage them. You might not recall hiring anybody, though. That's because the timeshare developer usually owns a majority of the interests in a timeshare resort, so the timeshare company hires the management company.
It may not shock you to learn that most timeshare developers hire themselves — usually a separate company that they have formed — to do the work. The fact that developers have all this control means that you, as a timeshare owner, have practically no control over rising maintenance costs.
The management company might send you a budget with your bill, but you don’t have any say in how much is budgeted or spent each year. Who does? You can probably guess the answer — it’s the company that locked you into your timeshare agreement in the first place.
Why Do My Maintenance Fees Go Up Every Year?
So, with that information, why do timeshare maintenance fees increase? The first reason is that you’re paying more for everything over time: inflation. As the price of everything from groceries to utility costs continues to climb, so too will the amounts charged to the management company and to you.
Inflation, however, can’t be the whole story, because your fees are almost certainly rising faster than the inflation rate. The next reason is that timeshare developers tend to be very generous with themselves when the money they’re using is yours. Management company budgets seldom decrease; they always go up. The company will pay itself management fees from your money, and they will want more of it.
Repairs and property renovations can also cause the number to jump, particularly in hurricane season with resorts in Florida (and, less frequently, Hawaii). Emergency repairs, major upgrades, and other unexpected expenses may also be paid for with special assessments, which are additional costs billed separately on top of your maintenance fees.
While this structure serves timeshare companies quite well, it’s the owners who are suffering. That’s by design, as these fees are an important part of timeshare developers’ business.
Why Are My Timeshare Maintenance Fees Higher Than My Mortgage Payment?
When you take out a fixed-rate mortgage, you know exactly how much you are going to pay and for how long. You pay according to a schedule, and you know years in advance exactly how much you'll be paying back in both the money you borrowed (principal) and the cost of borrowing (interest).
Because they’re an ongoing financial obligation, maintenance fees don’t have a maximum amount. They have to be paid forever, and your timeshare purchase agreement specifically says that they can (and almost certainly will) rise every year.
How much more can you expect to pay? Timeshare agreements generally set both the initial amount of these fees and the amounts they can increase each year.
In 2024, according to the American Resort Development Association (ARDA), the average timeshare maintenance fees per timeshare unit were $1,480. Let’s say those go up at a conservative rate of 8% per year. After paying $1,480 in 2024, here’s what the next few years would look like with rising costs:
2025: $1,598.40
2026: $1,726.27
2027: $1,864.37
2028: $2,013.52
2029: $2,174.60
As you can see, the numbers grow fast, and they will only get bigger over time. Fees follow the timeshare contract forever. As long as you’re in your timeshare, expect to keep paying those fees, and expect those fees to keep going up. Whether you use the property or not, you’ll keep paying, and there’s no ceiling for those fees.
I Don’t Want to Keep Paying More and More Money Forever! How Do I Stop?
The good news is that many people have been in your situation before, and they have found a way out. Centerstone Group uses its knowledge of the timeshare industry to obtain legal, ethical, and permanent exits for its clients.
Because fees follow the contract, and because the resale market for many timeshares can be limited, you might have success with Centerstone Group’s transfer program, which can move that contract over to someone who actually wants it. We have also had success getting timeshare developers to take back units with our proprietary pressure campaign. If you only recently purchased your timeshare, acting quickly may help you obtain a full timeshare cancellation.
And, in the rare situation in which you need legal advice from a timeshare attorney, we also work with several trusted, expert lawyers and law firms familiar with timeshare law to help you find a way out of your timeshare contract. We are an accredited company with the Better Business Bureau (BBB) — we hold an A+ rating, and our client reviews give us an excellent 4.79 out of 5 stars.
In other words, we will examine your specific contract and find the best exit path for you.
Let Centerstone Group Show You How We Can Help
In some sense, asking, “Why do timeshare maintenance fees increase?” is a bit like asking why water is wet — they’re designed that way. Don’t feel bad for not understanding that at the beginning. Timeshare salespeople are experts at hiding and obscuring the facts until it’s too late.
What you can do now is give us a call. During your free consultation, we’ll review your contract, bills, and specific situation to determine the best path for you. We’re confident that, once you see what Centerstone Group can do for you, you’ll want us to help you get back on the road to freedom from the financial burden of your timeshare. Contact us today, and we’ll see how we can help.
When you sat through the timeshare sales presentation, the staff probably mentioned annual maintenance fees. Maybe you weren’t happy about paying nearly $1,500 per year, but you understood and accepted the cost. Now, you’re paying over $2,000 for the same thing and feeling ripped off. Why do timeshare maintenance fees increase, anyway? And is there any way to make it stop?
The short answers are that maintenance fees go up every year by design, and no, it probably won’t stop unless you exit timeshare ownership altogether. One of the main drivers of income for timeshare companies is the recurring payment of timeshare maintenance fees, and developers are always seeking ways to increase profits year over year. The easiest way to do that is with fee increases.
So, if you’ve just opened an invoice and found your maintenance fees going up this year, it helps to learn a bit about those fees, what they’re used for, and what you can reasonably expect in the future. This guide will help you make more informed decisions about your ownership. As a leading timeshare exit company, Centerstone Group has decades of experience in the timeshare industry, and we can give you information and options that timeshare developers will not.
What Are Timeshare Maintenance Fees For, Anyway?
The problem of rising maintenance fees is a timeshare complaint as old as timeshares themselves. Though an explanation doesn’t necessarily excuse these fees or mean you should be okay with them, it can help if you understand what this money is being used for.
A timeshare owner’s association is a bit like an HOA for a timeshare resort. In theory, at least, a group of owners would get together, collect money from other owners, and use it to improve the properties in which they hold interests.
The collected funds would be used for operational costs, including property repairs, upgrades, landscaping, and general property upkeep. To the extent that timeshare resorts need reserves and property insurance, those amounts are also taken from maintenance fees.
In practice, timeshare resorts are not managed directly by owners but by timeshare management companies hired to manage them. You might not recall hiring anybody, though. That's because the timeshare developer usually owns a majority of the interests in a timeshare resort, so the timeshare company hires the management company.
It may not shock you to learn that most timeshare developers hire themselves — usually a separate company that they have formed — to do the work. The fact that developers have all this control means that you, as a timeshare owner, have practically no control over rising maintenance costs.
The management company might send you a budget with your bill, but you don’t have any say in how much is budgeted or spent each year. Who does? You can probably guess the answer — it’s the company that locked you into your timeshare agreement in the first place.
Why Do My Maintenance Fees Go Up Every Year?
So, with that information, why do timeshare maintenance fees increase? The first reason is that you’re paying more for everything over time: inflation. As the price of everything from groceries to utility costs continues to climb, so too will the amounts charged to the management company and to you.
Inflation, however, can’t be the whole story, because your fees are almost certainly rising faster than the inflation rate. The next reason is that timeshare developers tend to be very generous with themselves when the money they’re using is yours. Management company budgets seldom decrease; they always go up. The company will pay itself management fees from your money, and they will want more of it.
Repairs and property renovations can also cause the number to jump, particularly in hurricane season with resorts in Florida (and, less frequently, Hawaii). Emergency repairs, major upgrades, and other unexpected expenses may also be paid for with special assessments, which are additional costs billed separately on top of your maintenance fees.
While this structure serves timeshare companies quite well, it’s the owners who are suffering. That’s by design, as these fees are an important part of timeshare developers’ business.
Why Are My Timeshare Maintenance Fees Higher Than My Mortgage Payment?
When you take out a fixed-rate mortgage, you know exactly how much you are going to pay and for how long. You pay according to a schedule, and you know years in advance exactly how much you'll be paying back in both the money you borrowed (principal) and the cost of borrowing (interest).
Because they’re an ongoing financial obligation, maintenance fees don’t have a maximum amount. They have to be paid forever, and your timeshare purchase agreement specifically says that they can (and almost certainly will) rise every year.
How much more can you expect to pay? Timeshare agreements generally set both the initial amount of these fees and the amounts they can increase each year.
In 2024, according to the American Resort Development Association (ARDA), the average timeshare maintenance fees per timeshare unit were $1,480. Let’s say those go up at a conservative rate of 8% per year. After paying $1,480 in 2024, here’s what the next few years would look like with rising costs:
2025: $1,598.40
2026: $1,726.27
2027: $1,864.37
2028: $2,013.52
2029: $2,174.60
As you can see, the numbers grow fast, and they will only get bigger over time. Fees follow the timeshare contract forever. As long as you’re in your timeshare, expect to keep paying those fees, and expect those fees to keep going up. Whether you use the property or not, you’ll keep paying, and there’s no ceiling for those fees.
I Don’t Want to Keep Paying More and More Money Forever! How Do I Stop?
The good news is that many people have been in your situation before, and they have found a way out. Centerstone Group uses its knowledge of the timeshare industry to obtain legal, ethical, and permanent exits for its clients.
Because fees follow the contract, and because the resale market for many timeshares can be limited, you might have success with Centerstone Group’s transfer program, which can move that contract over to someone who actually wants it. We have also had success getting timeshare developers to take back units with our proprietary pressure campaign. If you only recently purchased your timeshare, acting quickly may help you obtain a full timeshare cancellation.
And, in the rare situation in which you need legal advice from a timeshare attorney, we also work with several trusted, expert lawyers and law firms familiar with timeshare law to help you find a way out of your timeshare contract. We are an accredited company with the Better Business Bureau (BBB) — we hold an A+ rating, and our client reviews give us an excellent 4.79 out of 5 stars.
In other words, we will examine your specific contract and find the best exit path for you.
Let Centerstone Group Show You How We Can Help
In some sense, asking, “Why do timeshare maintenance fees increase?” is a bit like asking why water is wet — they’re designed that way. Don’t feel bad for not understanding that at the beginning. Timeshare salespeople are experts at hiding and obscuring the facts until it’s too late.
What you can do now is give us a call. During your free consultation, we’ll review your contract, bills, and specific situation to determine the best path for you. We’re confident that, once you see what Centerstone Group can do for you, you’ll want us to help you get back on the road to freedom from the financial burden of your timeshare. Contact us today, and we’ll see how we can help.