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Timeshare Maintenance Fees: 5 Things You Should Know

Whether you’re a timeshare pro or a new owner, you’ve probably got more than a passing familiarity with timeshare maintenance fees. But how do maintenance fees affect your ownership when purchasing, and what should you consider in the long run? Read on for info on fees and club dues, plus tips on covering your fees when you’re not using your ownership.

Laura Gohl - Aug 18, 2020

What Are Timeshare Maintenance Fees?

Beyond your original timeshare purchase, you’re required to pay timeshare maintenance fees as well. These fees are due whether you bought your timeshare directly from your home resort or on the resale market. Timeshare maintenance fees are also due if you’re part of a points-based vacation club (more on points ownership here). 

Think of it like this: just like there are annual costs to keeping your car running smoothly, or HOA dues that improve your community, yearly maintenance fees are distributed amongst owners to help keep the property you love running efficiently.

Your home resort will allocate fees towards utilities, insurance, and upkeep of the grounds and amenities. The resort may also pool fees into a reserve fund for repairing damage from (for example) weather events. Odds are you’ll receive your timeshare maintenance fee bill annually, but some resorts send notices monthly or quarterly.

How Do Maintenance Fees Impact You in the Long Term?

Maintenance fees are one of the most crucial elements to consider when deciding on vacation ownership. According to ARDA, the average maintenance fee for timeshares in 2018 was $1,000. These fees vary according to the number of rooms in your unit or the location of your home resort, and they can also increase each year. For example, that same study revealed that the cost of annual maintenance fees had increased by about 2% from the previous year.

You’ll want to keep up with your payments to avoid adverse impacts on your credit score. Keeping up with your maintenance fees is also essential to unlocking variations in your vacation ownership experience, such as the ability to trade your weeks through an exchange company.

Keeping up with your timeshare maintenance fees is essential to your credit score (and to unlocking new vacation opportunities)

Before embracing timeshare ownership, take time to crunch the numbers and see if this type of travel purchase is a good option for you long term. Upon paying off the purchase price of your timeshare, $1,000 for a week-long stay at your dream destination each year can make plenty of sense.

However, if you’re taking out a loan to purchase your timeshare, interest rates then become part of the equation. If you’re looking at many years of interest, plus maintenance fees that are subject to change, you may want to double check your numbers.

What about Timeshare Maintenance Fees for Points and Floating Weeks?

Maintenance fees not only differ depending on your resort and unit, but also the timeshare arrangement you’ve signed up for. As we mentioned before, every timeshare owner owes yearly maintenance fees towards operating expenses and repairs. Vacation club owners also owe annual club dues in addition to their maintenance fees.

Points-based ownership is becoming increasingly popular, as it offers flexibility in bookings and opportunities to explore within a network of destinations. In a points-based system, both maintenance fees and club dues are based on the number of points you own. 

The specifics can vary between brands, but in general your maintenance fees will go towards your home resort, while annual club dues are allocated towards an ownership pool of sorts. These fees cover the cost of using the resort’s network of properties. 

Remember, these annual fees change with the number of points you own – all the more reason to be attentive to your costs. Whichever timeshare arrangement best aligns with your travel goals, figuring the maintenance – and club dues – math into your timeshare purchase can help set realistic expectations for your ownership.

Can You Claim Timeshare Maintenance Fees on Your Taxes?

You may have a lot of questions concerning your timeshare come tax season. You should always confer with your accountant, but in general, maintenance fees are not tax deductible. Just like you wouldn’t deduct costs related to home improvement projects, you likely can’t deduct fees paid towards the maintenance of your timeshare.

That said, there are other elements that you can possibly claim on your tax return, such as interest expenses, or in some cases, income from renting your timeshare. But this is just a general overview. You should always connect with a tax professional to dive into the details.

How Can You Mitigate Your Timeshare Maintenance Fees?

It’s critical to note that maintenance fees are due each and every year, whether you whisk off to your resort or not. To alleviate the woes of a hefty bill for a property you aren’t able to spend time at in a given year, renting out your timeshare can help you get the most out of your ownership.

It’s critical to note that maintenance fees are due each and every year, whether you whisk off to your resort or not

Listing with KOALA empowers you to rent out your timeshare with confidence. Our platform connects travelers to your listing, backed with secure booking capabilities and customer support. And upon your guest’s check-in, you’ll receive payment within 24 hours. If you find yourself unable to go on holiday, renting can mitigate your maintenance fees, while offering spacious accommodations to a very happy traveler.

When deciding on a price for your listing, it’s important to note that travelers won’t factor their host’s maintenance fees into their booking decisions. Instead, check out what comparable units are going for in your area for the same dates. You can check sites like Expedia or Booking.com, where more than likely than not you’ll be able to see your own resort. If you still have questions about pricing, check out our in-depth guide. You can also reach out to our team by emailing us at hello@go-koala.com or by giving us a call at 833 KOALA-CO (833-562-5226)!

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