Diamond Announce 12.96% Price Increase
Maintenance fees are an integral part of timeshare ownership and go towards the running costs of a resort, however, these fees are often seen by timeshare companies as a money-making scheme. The most recent example of this is the letter received by Diamond Resorts members announcing an average increase of 12.96% with nearly 11% of the increase being directly attributed to the exchange rate. It would now appear that Brexit is the latest excuse being used to justify huge maintenance fee increases.
A more plausible explanation is that as new timeshare buyers become rarer, operators seek new ways to turn a profit. This comes at the expense of existing owners, as timeshare companies’ ramp up maintenance fees, to far more than the cost of running the resort. Timeshare companies consistently raise the maintenance fees each year, meaning that in the space of a few years’ owners are being asked to pay maintenance fees they would never have accepted when buying their timeshare.
10% A Year
An owner paying maintenance fees of £725 per year (the maintenance fee for a 2 bedroom apartment in the Marriott, Marbella in 2014) with only a 10% rise in prices per year would be paying £1061 per year after only 5 years and £1709 per year after 10 years.
The Horror of Rising Maintenance
This made re-selling contracts very difficult for timeshare owners as potential buyers did not want to pay the astronomical maintenance fees. On top of this, it was now even more in the interests of the timeshare companies to prevent timeshare owners from terminating their contract. This led to tactics such as intimidation, as well as the exploitation of laws and legal loopholes in order to prevent owners from getting rid of a timeshare.
Some owners may consider simply refusing to pay their timeshare maintenance fees. However, not paying timeshare maintenance fees can land you in even more legal trouble as timeshare companies will pursue owners for not only the maintenance fees owed but also the legal fees of any action they take. This means the only option for these owners is to continue to pay the maintenance fees.
A way out of timeshare – a way out of maintenance
This all leaves many owners desperate to know how to get rid of a timeshare. Timeshare is an incredibly complex field and often specialist advice is needed. Many timeshare owners try to tackle timeshare companies on their own and end up creating, even more, problems for themselves due to the complex legalities surrounding timeshare.
The first step should be to speak to a member of our team of specialists. We will be able to advise you on the best course of action for your situation.
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