Welcome to another guide by the Travel & Leisure Group Ltd, Ebay ID: tlasauctions
Management Fees?.........Management fees or Maintenance fees, however termed, are effectively the same thing. Management or Maintenance fees are an essential part of timeshare ownership and should be looked at by all those who are serious about pursuing their interests in timeshare.
When developers sell timeshare, they charge a large amount of money for the purchase, this is because they are trying to cover the cost of building, as well as trying to pay the banks back the (lets say) €5,000,000 they borrowed to do so. The management fees they charge each year, should be a true reflection of the over-all cost of running the resort, divided between the number of timeshare units on the complex.
Each timeshare unit has a built in cost for management fees, as there is a minimum amount of money needed each year for maintenance of the Club houses, pools, gardens and golf courses etc.. Most resorts will charge higher amounts for larger units. This is the case with every resort that I can think of at this moment in time and can be justified, as a 3bed sleeping 8 people, will take a lot longer to clean than a studio sleeping 2. There is also more furniture and larger kitchens to take into account. The cost of Employment is also a key factor and in Europe costs are that much higher.
There are two simple costs to equate when comparing a Package Holiday and a Timeshare Holiday. The Hotel or Resort in Question and the Flights. Many people compare in the WRONG way.
I have personally searched a few Package Holiday websites recently and then compared them to a similar options available with timeshare. One that I checked was a holiday in Florida in August for two weeks. The comparision was with a very well known high steet Travel Agent. The search was simple: 2 Bedroom Sleeping 6 in August for 2 week in a 4*+ Resort. The Travel Agent quickly gave their best option which was for a 4* resort and was priced at a cool £998 per person. A total of £5,988. So, a timeshare resorts average management fee is approx £400 per week, a total of £800 for two weeks, which leaves £5,188 for 6 flights to Florida, which after a a few clicks proved to be approx. £2,400, a Total of £3,200 without much searching, thus £3088 cheaper.
Similar searches were submitted for Mallorca and Spain and one or two other popular destinations and timeshare came up trumps every time.
OVER BUYING..... If there are two of you, there is no need to purchase a 2bed sleeping 6 if you are price consious. Based on a management fee of £500 per week owned, it is easy to check the value. If £500 gets you a 2bed sleeping 6, then divide by 6 people and then divide by 7 nights. £500 between 6 people is £11.91 per person per night. Now check your local B & B for per person per night prices, or check the nearest Travel Lodge or Travel Inn anywhere in Europe and try to beat it, it will be very hard to beat.
£11.91 per person per night for a £60,000,000 resort, with every ammenity under the sun isn't bad, right?
The cost of purchasing a Studio sleeping 2 might be similar to a 1bed sleeping 4, but do you really need that extra room? Smart buying could save you annually, which, lets face it, is your only concern after your purchase.
As always, we are here to advise and direct, so any questions, please feel free to ask!