The hidden costs of timeshare ownership

Timeshare ownership may seem like a good deal because you’re praying for a fraction of the cost of getting a hotel every year. Plus, it’s all yours for the rest of your life. However, there is a clear downside to timeshare ownership that many timeshare companies tend to downplay, such as all the additional hidden costs of ownership. If you are considering becoming a timeshare owner, you need to know what you are getting into and at what cost.

The most common fee you will encounter with timeshare ownership is the maintenance fee. In addition to your initial purchase, there will also be an annual maintenance fee to pay for the upkeep of the property. This can be paid once a year in a lump sum, or in some cases it can be paid monthly. Maintenance fees can vary from place to place, but know that they will always continue to increase.

Another unexpected fee you may encounter includes taxes, which sales agents never warn you about. Be sure to ask about the tax on your potential timeshare because in most parts of the world, a timeshare tax is imposed for each night you stay in your timeshare and it can be as little as $20 or more per night.

One hidden fee that you would think is included in your maintenance fee is utility fees. Your maintenance fee doesn’t cover the amount of electricity you use during your stay, so at the end of the week, you end up getting a bill for it. If you are using the air conditioning unit for the whole week, this can be quite expensive.

Other hidden fees include transportation costs. You’re on your own, so if your timeshare is far from where you live, be sure to factor in how much it will cost to drive or fly there and rent a car or use public transportation. Your source of transportation and the distance of your timeshare from your home should definitely be taken into account when calculating the profitability of owning a timeshare.

Lastly, there are also trade and exchange fees. Most timeshares are part of a larger network, so if you want to use your timeshare week at a different location, you’ll need to pay a fee to make that happen. If you are seriously considering buying a timeshare, don’t let the purchase price fool you or sway your decision. Timeshares cost much, much more because of the aforementioned fees that sales agents tend to omit and don’t exactly highlight in your contract.

Timeshares may be for some people, but they are definitely not for everyone. If owning a timeshare no longer fits your budget or lifestyle, you may want to consider your timeshare relief options.