What are Maintenance Fees?
Maintenance fees are established and collected by the Home Owners Association or Resort Management Company to maintain the timeshare resort property, pay insurance, utilities, purchase appliances and furniture updates, account for refurbishing, and pay for annual taxes.
Maintenance fees will, of course, vary from resort to resort and will vary according to the type and size of the unit purchased. As such, the cost of resort operation is spread out among owners. This fee must also build up reserves to pay for non-recurring costs that need periodic replacement, and other capital costs as normal deterioration occurs.
Oftentimes, during the active sales period, many resort developers may temporarily subsidize these maintenance fees as an extra incentive to promote buyers to act quickly. However, when the Home Owners Association takes over, these fees may rise to unsubsidized levels and may jump sharply.