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Understanding Timeshare Annual Fees – Don’t Be Caught Off Guard

When considering if purchasing a timeshare fits within your budget, you need to look beyond the purchase price. There’s an old adage that says, “There are only two things in life we can count on – death and taxes.” For timeshare owners, there are also timeshare annual fees. Adding these fees to the purchase price will give you a more accurate picture of the financial impact of buying a timeshare. 

Many people purchase a timeshare with a personal loan or an installment loan offered by the resort provider. This will make the total purchase price significantly higher. Using a loan can actually double the purchase price due to the interest. It’s not uncommon that in the excitement of purchasing your dream vacation timeshare, those extra expenses may have slipped your mind. However, the first bill you receive for your timeshare annual fees is sure to refresh your memory. 

Timesahre annual maintenance fees

What Are Timeshare Annual Fees?

Although timeshare annual fees include a number of different expenses, they primarily cover operational and maintenance expenses. According to the ADRA (American Resort Development Association), in 2018, the average annual fee was $1000. However, some resorts have fees over $2000. The amount varies depending on the size, location, and desirability of the timeshare. Many fees may have also increased beyond that estimate due to rising costs.

The breakdown of timeshare annual fees can also vary depending on the resort but are typically operational (which includes normal maintenance), reserve fees, real estate tax, and special assessments.


Operational or maintenance fees are typically the bulk of timeshare annual fees and cover all the operational expenses such as utilities, insurance, and the general upkeep of the building, grounds, and amenities such as a pool. This fee also includes the cost of employing the staff to conduct these operational tasks.

Reserve Fee

Some resorts will charge a reserve fee to build up funds to cover unexpected maintenance or repairs. The reserve fee could include weather damage, utility failures, and more.

Special Assessments 

This type of fee is used to cover major repairs or upgrades to the property, such as a new roof. The repairs and upgrades are planned maintenance, and depending on the property, you may receive advance notice of the repairs before the assessment is invoiced. The money accumulated in the reserve fee is sometimes used toward these types of repairs but is often not enough to cover the entire cost, and an assessment is necessary. 

Real Estate Taxes

The real estate tax due on the resort property is divided between all the timeshare owners and is included in your annual fees. Property taxes often increase annually, so they will also cause your fees to increase.

What Happens When the Timeshare Loan is Paid Off?

The good news is you no longer have a loan payment, but the timeshare annual fees will continue and are likely to increase each year. Just like homeownership, property taxes, insurance, and maintenance costs continue.

A common question among timeshare owners is, “What happens if I stop paying timeshare annual fees?”

Annual maintenance fees are a legitimate debt that must be paid. The resort or timeshare company will take the necessary measures to collect from collection agencies to foreclosure. However, there is another option for owners looking to get out from under the timeshare burden – timeshare cancellation.

What is Timeshare Cancellation?

If you’ve just purchased your timeshare, you may still be in the “cooling off” period, where you can back out of the purchase without any penalties. This period varies by location, and once it’s expired, the best option is to work with a timeshare cancellation company. They will negotiate a legal agreement of termination with the resort or developer you purchased your timeshare from. 

Timeshare fees

The Timeshare Cancellation Professionals

When you’re ready to get rid of your timeshare, working with a reputable timeshare cancellation company is the best solution. Timeshare Legal was founded by Christian Highlander. He has over 20 years of experience and has worked on both sides of the industry. Christian and his team are passionate about providing timeshare exit solutions that have the least possible impact on your credit and financial future.

Timeshare Legal is a professional, full-service timeshare cancellation company. And yes, we can get the timeshare exit process started without all the upfront costs. 

Take our online assessment to see if you qualify for a timeshare cancellation, or contact us today to schedule a consultation. Learn how we can help you take the first step toward timeshare cancellation and financial freedom.