Question
In this module and textbook chapter, you learn about the money that funds ongoing timeshare resort operations, management and upkeep.This money is collectively referred to
In this module and textbook chapter, you learn about the money that funds ongoing timeshare resort operations, management and upkeep.This money is collectively referred to as the Maintenance Fee and each individual owner in the timeshare resort/club/membership are required to pay these fees annually....it is the budget from which the resort pays it's annual expenses.
Assumptions: the resort has 206 units; 1,069 owner weeks
The current fees represent the lowest available cost for the service levels established/required by the timeshare owners.
Current reserves are at $3.2M and legally cannot fall below this level in any given year.
Property taxes cannot be adjusted.In fact, even though property taxes are collected by and paid for by the timeshare HOA (Homeowners Association) to the State of Florida, they are not a part of the budget....this is a service that some timeshare HOA's sometimes do to make it easier on their owners.
The owners have been complaining about the fees and are looking for a minimal reduction of 10% ($82-88) per unit week.See the previous note about taxes.....when taxes are not included in the budget a 10% reduction is less than $82-88 per unit week.
Last year's hurricanes caused substantial damage to the property that will require a special (one time) expense of $4M
Would you cut expenses? How/where?
As an elected board member and timeshare owner, how do you respond to the timeshare owners' requests to lower their fees?
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