When purchasing a timeshare, many buyers focus solely on the initial purchase price. However, the maintenance fees are a recurring obligation that continues for as long as you own the property. These fees rarely remain static; they typically increase annually to account for inflation, property upkeep, staff wages, and property taxes.
Why Do Maintenance Fees Increase?
Timeshare resorts are managed by Homeowners Associations (HOAs) or management companies. As the building ages, the cost of repairs increases. Factors driving these increases include:
Cost of Living Adjustments: General inflation affecting utilities and services.
Reserve Funding: Savings set aside for major projects like roof replacements or pool renovations.
Management Fees: The profit margin and operating costs for the management firm.
Unpaid Dues: When other owners default, the remaining owners often see their fees rise to cover the shortfall.
The Power of Compounding Increases
A maintenance fee of $1,000 might seem manageable today, but with a 5% annual increase—a common industry average—that fee will double in approximately 15 years. Over a 20-year ownership period, you could end up paying significantly more in maintenance fees than you did for the original purchase price of the timeshare.
What are Special Assessments?
A "Special Assessment" is a one-time fee charged to owners to cover unexpected expenses or major capital improvements that the reserve fund cannot cover. This might include damage from a natural disaster (like a hurricane) or a massive renovation project. When using our calculator, it is wise to factor in at least one or two special assessments over a 10-to-20-year period to get a realistic view of the total cost.
How to Use This Calculator
Current Annual Fee: Enter the amount you currently pay per year.
Expected Annual Increase: Most resorts see increases between 3% and 7%. If you are unsure, 5% is a standard baseline.
Years of Ownership: Enter how long you plan to keep the timeshare, or the duration of the contract.
Special Assessments: Add any projected one-time costs you anticipate.
function calculateTimeshareFees() {
var currentFee = parseFloat(document.getElementById('currentFee').value);
var annualIncreasePercent = parseFloat(document.getElementById('annualIncrease').value);
var years = parseInt(document.getElementById('years').value);
var assessments = parseFloat(document.getElementById('specialAssessments').value);
if (isNaN(currentFee) || isNaN(annualIncreasePercent) || isNaN(years)) {
alert("Please enter valid numbers for the required fields.");
return;
}
if (currentFee < 0 || annualIncreasePercent < 0 || years < 1) {
alert("Please enter positive values.");
return;
}
var totalFees = 0;
var yearlyFee = currentFee;
var growthRate = annualIncreasePercent / 100;
for (var i = 1; i <= years; i++) {
totalFees += yearlyFee;
if (i < years) {
yearlyFee = yearlyFee * (1 + growthRate);
}
}
var grandTotal = totalFees + (isNaN(assessments) ? 0 : assessments);
var averageAnnual = grandTotal / years;
document.getElementById('finalYearFee').innerText = "$" + yearlyFee.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalFeesPaid').innerText = "$" + totalFees.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('averageCost').innerText = "$" + averageAnnual.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('grandTotal').innerText = "$" + grandTotal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('timeshareResults').style.display = 'block';
}