Timeshares§
Timeshares, also known as time-sharing, is a model of property ownership where several people hold rights to use the property, usually a vacation resort or split-level condos, for specified periods every year. Each owner buys a specific fraction of time in the unit, typically one week, and the costs associated with the ownership are divided among all co-owners.
Examples§
- Orlando timeshare: An individual buys one week of timeshare in a resort unit in Orlando, Florida. They can use the property for one specified week each year (Week 36 each year, for example) and share ownership costs with other timeshare owners.
- Hawaii timeshare resort: A buyer purchases a timeshare for a beachfront resort in Maui. They own a fraction, such as two weeks, of annual usage time that lets them vacation there every year within a specified window, such as December 15 to 29.
Frequently Asked Questions§
What are the benefits of owning a timeshare?§
Owning a timeshare can offer cost savings compared to renting hotel rooms for annual vacations, ensures guaranteed accommodations during peak seasons, and provides long-term cost predictability.
What are the downsides of timeshares?§
Maintenance fees can be high and increase annually, resale value is often much lower than the purchase price, and there can be restrictions on when the timeshare can be used.
Can timeshares be rented out?§
Yes, most timeshare agreements allow the owner to rent out their timeshare period if they are unable to use it.
How are timeshare fees determined?§
Fees are usually proportional to the ownership share and can include property upkeep, taxes, management fees, and utilities.
Related Terms§
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Fractional Ownership: Involves ownership of a property shared among multiple individuals with a broader scope than timeshares, often including equity in the property.
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Vacation Ownership: Broad term encompassing various ways individuals can own usage rights to a property, including timeshares and fractional ownership.
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Resort Properties: Properties designed specifically for vacation-goers, typically offering amenities and services similar to a hotel.
Online Resources§
- American Resort Development Association (ARDA): Provides information and resources about timeshare ownership.
- Timeshare Users Group (TUG): A community and database of timeshare owners sharing their experiences and ratings.
References§
- “Vacation Ownership 101” by Shmuel Vaknin
- “Timeshares for Dummies” by Lisa Ann Schreier and Sebastian R. Naum
Suggested Books for Further Studies§
- “The Time-Share Fraud: How to Avoid It and Beat It” by Michael K. Bowden
- “Vacation Ownership Sales Training: The One-on-One Successful System” by Nancy Geils
- “The Insider’s Guide to Timeshares: How to Buy Smart and Sell Once You’re Done with Your Slice of Paradise” by Michael J. Schieneman
