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Travelers interested in buying a timeshare have most likely found there are a number of different options available to them. Many of these options center around the timeshare unit itself, for example number of bedrooms, bathrooms, view, usage time, etc. One subject some people may not be familiar with and overlook is the ownership type of the timeshare; normally a timeshare is either deeded or leased. This information should be fully disclosed when purchasing the timeshare so buyers know exactly what they are getting into. Both ownership types have advantages and disadvantages, below we will briefly describe each ownership type so you can decide which option will be the best for you when purchasing a timeshare.

Deeded Timeshares
When a person purchases a timeshare with this ownership option they own the timeshare out right forever until the deed is transferred to another party. The deed can be transferred to another party for a variety of different reasons including resale, death in the family, or bankruptcy just to name a few. This type of ownership can be compared to owning a home; the difference is instead of owning the whole property the owner only has rights to one unit during the described usage time. When buying a deeded timeshare it is important to remember ownership will stay in your family if something were to happen to you, just like ownership of other real property the ownership of a timeshare will be automatically transferred to the people who inherit your property when you are gone. Even though it is a bit morbid, it is important to talk to the person or party you plan on willing a timeshare to, just to make sure they would be happy with the ownership and will get as much enjoyment from it as you have.

Leased Timeshares
The biggest difference between a leased timeshare and a deeded one is the amount of time the owner has a right to the property, when using a leased option for ownership there is a set number of years the purchaser owns the property. After the time is up there is an option the owner can exercise to renew their lease and extend their ownership. If for some reason you decide you do not like owning a timeshare you do not have to renew your lease at the end of the contract and will be under no further obligation to the timeshare property management. This type of ownership is very popular for Mexico Timeshares, as people from outside the country are not allowed by law to own land that is within 50 of a Mexican coastline, where much of the timeshare property in Mexico is located.

Each person is a little different and the type of ownership that fits their needs is completely up to them. Many people own a number of different timeshares, if you are one of these people and have owned both types of timeshares please let us know which type you feel is better. What were the advantages and disadvantages for either type of ownership?

Maintenance fees and special assessment fees are both necessary to keep timeshare resorts in running order and make improvements when facilities become outdated, however many owners’ feel maintenance fees and in some cases special assessments have been rising at a rate that is not justified. Maintenance fees are paid on a yearly basis to cover the expenses a resort incurs in a year, whereas special assessments are made once every few years to upgrade the facilities.

In an effort to bring issues regarding timeshare properties into the spotlight Vacation Timeshare Rentals is always searching for interesting stories and posting about them in our blog to get owner’s attention and hopefully helping these owners resolve their problems. Today we found a story originating from Mustang Island Beach Club near Corpus Christi, Texas. Click here to read the full story. In summary, many of the owners at this resort were asked to pay a special assessment fee of $3,000 several years ago to upgrade one of the three condo buildings. Owners were promised once the renovations were completed everyone who paid the special assessment would have access to use the newly renovated building. Since the renovations have been completed many owners are finding they are not being allowed to use the new facilities and are forced to spend their vacations in other buildings on the resort premises, which have not been upgraded yet. Owners are upset now because others are reaping the benefits they have already paid for. Owners and management recently came together in a specially called meeting to voice their feelings and dissatisfaction to resort management and try to come to a resolution both parties could agree upon. Unfortunately there has not been a resolution to this situation, leaving many owners feeling cheated.

It is common to hear stories about owners being upset for rising maintenance fees but rarer for a situation like the one described above to occur, perhaps this is because special assessment fees are not issued as often as maintenance fees. Everyone can relate to the feeling of being frustrated and ripped off when you pay for one thing and get something else in return. Most resorts are either run by a management company or by a home owners association; the resorts managed by the home owners association seem to have the best interest of owners in mind since many of the people running the resort are owners themselves and will do a better job of budgeting money in order to receive a better return on investment for the owners as a whole. Almost every timeshare resort around the world has issued a special assessment fee at one point or another, if you are an owner at one of these resorts how did you feel about the assessment? Did the improvements made using this money match your expectations? If not did owners come together and voice their opinions to management and what was the outcome?

In any business there are decisions to make on a daily basis; perhaps one of the most important decisions involves the pay scale of the employees at a given company. Management is always trying to find the best mix of making employees happy while trying to increase the bottom line. It is no different for the timeshare industry; recently Disney Vacation Club has decided to restructure the pay scale for its timeshare salesmen and women. Disney has stated that it will decrease the base salary of its sales staff by 10 percent, while increasing the bonus payments to those salesmen and women who reach certain goals. Disney is basically trying to reward their highest performing individuals while motivating the rest of the sales staff to try and increase their sales in order to gain more commission payments. Since timeshares depreciate in value like a used car it is a fair assessment to compare the payment structure of timeshare sales staff to the sales staff at a car dealership, both are based on production and reward the highest earners. An item that may not have been considered when making this decision is that effect it might have on the overall long term reputation of Disney Vacation Club.

Most people who visit a resort and choose to participate in one of the resorts’ sales meetings in order to get free tickets or free lodging know what they are getting themselves into, i.e. a pushy sales person showing them around and doing anything they can to get the traveler to purchase a timeshare. I have heard from people who have visited Disney Resorts before and participated in these presentations and many seem to be surprised regarding the aggressiveness of the sales staff when compared to other resorts. It seems that Disney sales staff currently is less pushy and more respectful of a person’s wishes, however with the new payment structure outlined above I am concerned how long this reputation will last? With less base salary and higher commissions people visiting the resort will most likely see a more aggressive sales approach and can expect many of the sales personnel to do anything and everything to sell the timeshare. Current owners can also expect to start receiving phone calls and mailers regarding an upgrade of their current contract. This move is almost guaranteed to increase Disney timeshare sales, but we are afraid their reputation may suffer in the long run.

We would love to hear about any experience you have had with Disney whether it be good, bad or ugly? When you visited the resort what was the sales person like? Hopefully regular readers of our blog and anyone reading for the first time already knows that timeshare resales are the way to go and will save you thousands of dollars when compared to buying directly from the resort. If you are searching for a timeshare please feel free to visit our Disney Timeshare Resales section.

One of the main goals of this blog is to keep readers up to date regarding the latest timeshare scams and hopefully help others from being defrauded by these individuals and in some cases companies trying to separate owners and renters from their money. Regular readers know that many of our posts have focused on exposing various timeshare scams to the public. Today I found an article stating the Florida Attorney General, Bill McCollum, is planning to target two companies that have been defrauding timeshare owners for quite some time. The companies named in the lawsuit were Universal Marketing Solutions and Creative Vacation Solutions, both based in Palm Beach County Florida. The Attorney General stated the companies named in the suit were estimated to collect more than $4 million per month in marketing fees and also reported his office was receiving 10 consumer complaints per day on average from people who were contacted by these companies. These companies were using a very common method in their scheme, they would contact timeshare owners telling them they had a buyer in place for their timeshare, all the owner needed to do was to send them money for an escrow search which would be returned at the time of closing. It is reported that many owners gave the companies around $2,500 in hopes of finding a buyer for their timeshare. In this type of scam there never is a buyer and by the time the owner reviews the contract and realizes what the contract actually says it is too late to get their money back. In these types of schemes the owner is sent a contract which they believe is for the complete sale of the timeshare, however in the fine print the contract will state the real purpose of the contract is to give the company permission to advertise the timeshare for the owner and the company involved is under no obligation to actually sell the unit for the owner. If you are a person who has been defrauded or even contacted by either one of these companies we advise you to contact the Florida Attroney General at their website http://www.myfloridalegal.com or call the fraud hotline at 866-966-7226.

Hopefully this lawsuit will bring justice to both of these companies and the people involved defrauded by either company receive their money back as well as create awareness for any owners who may be interested in selling a timeshare. The story above illustrates why we stress people research any company they plan on doing business with, especially in industries where it is well known that many scammers exist and are searching for their next victim. Always remember timeshares do not increase in value over the years so anytime a company or individual contacts you via phone and asks if you would like to sell a timeshare for more than you paid for it you can rest assured it is a scam and you should run the other way as fast as you can. Vacation Timeshare Rentals has been assisting owners wanting to sell their timeshares for years, if you are interested please visit the following page to sell a timeshare.

Everyone familiar with the timeshare resale and timeshare rental market has heard at one time or another about the existing scams to separate both timeshare owners and potential buyers/renters from their money. We have given a description of many of these scams since the inception of our blog, the latest report is a fairly elaborate scheme including fake names and email addresses which we will post in order to keep others from being in contact with this person. This latest scam involves a number of different crimes which work together to scam one person out of the price of a rental. The names that we have found being used by this scammer so far are “Thomas Bresley”, “Lakisha Jessie”, “Therrion Wallace”, “Richard Mergan”, and “Jeffrey Curtis”. Some of the emails used by this individual are vc.tb01@yahoo.com and r.vacations01@yahoo.com. These may or may not be real names found by these individuals in an effort to sound legitimate. Below we will describe our theory on how this scam is put together.

The first step for this scammer is to steal a person’s credit card information in order to post an advertisement on the internet. Once the card is stolen a legitimate ad on the same or different website is copied, giving details of the unit being advertised. Once the listing is online the scammer then uses another fake identity to open a bank account which they will ask potential renters to deposit money into. When everything is in place the crook waits for an unsuspecting victim to contact them and ask for the rental on given dates, even though the person does not own at the given resort they say the unit is available and send further details, including a rental agreement contract, their fake banking information, and a request for the renter to make a deposit of anywhere from 50% to 70% of the agreed upon amount for the rental. Once the money is wired the amount is immediately withdrawn and the account is closed giving the renter little or no recourse to find the guilty party. There are a couple of signs a renter can use to spot these types of scams and make sure they do not fall victim, the first is most people will not give out their banking details so quickly to a perfect stranger. If they do give out their banking details it should raise a red flag if the name on the account is different than the name of the person you have been corresponding with. Secondly we recommend doing a simple internet search for any information they give you for example, name, phone number, email addresses, etc. Chances are this is not their first time trying this scam and if they try to use the same information more than once maybe someone has already reported the information and has outlined the scam on a website in order to keep others from being scammed.

Vacation Timeshare Rentals never recommends making payment for timeshare rentals via wire transfer, the information given out and the lack of knowledge of the other party exposes a great potential for fraud. If you have had any contact with any of these people we recommend ceasing all communication. We also invite you to post your story if you have been in contact with anyone listed above, all information will be helpful in trying to keep others from being defrauded and hopefully one day catching this criminal.

People searching for timeshare resales mostly consist of bargain hunters who are well educated in the field of timeshares and have been familiar with this concept for quite some time. Especially in this economy more and more people are searching for the lowest price items and the best value, this holds true for every industry not just timeshares. With that being said many people searching for timeshares begin to ask themselves how can I find the best bargain by making offers less than the asking price without offending the person who owns the timeshare. Hopefully the owner of the timeshare has done their research and understands the amount they can expect to receive from selling their timeshare, owners who do not do this will many times have an over zealous asking price for their unit allowing potential buyers to easily spot them. Below we have outlined a few tips that will help you make an offer without offending owners and give potential buyers the best chance of securing a timeshare resale.

The first tip is to be polite, no one wants to receive an email slamming them or making them feel stupid. It is important to remember an initial contact with the owner is basically made to establish a channel of communication. In the initial inquiry it is beneficial to not even discuss the offer you intend on making for the unit. When first contacting an owner I recommend asking simple questions about the unit itself, for example how many bedrooms, bathrooms, usage time, view from room, etc. Once you have established a line of communication you can then make an offer and begin negotiating with the owner. The second tip is to present market research about the timeshare property in question. Presenting a document with market comparables of the timeshare unit when making the offer will show the owner why you have offered a certain price. The best document to have when making an offer is a timeshare market evaluation prepared by Vacation Timeshare Rentals. This document will give you and the owner the selling price of three comparable units that have sold over the past year and will give you an idea of what you should pay and the owner an idea of what they can receive for the unit. Sending a document to an owner from a third party without bias will make the owner feel more at ease with the offer and create a mutual understanding about the value of the timeshare. The final tip we will offer is to keep the line of communication open and try to end the conversation on a positive note. Even if you and the owner are not able to reach an agreement during your initial conversation make sure to let them know they can contact you in the future if anything changes and maybe the two parties can work out a deal at that time. You never know when someone may change their mind and decide to accept your offer, letting them know that you would be open for future contact will keep you at the top of their list if they do change their mind.

We are well aware that many of our readers have been on both sides of a timeshare resale transaction, if you are one of those please let us know about your experience, how did you go about making an offer and establishing communication with the owner? What was the final outcome?

Every year one of the most notable organizations in the timeshare industry, the American Resort Development Association, releases a report entitled Vacation Timeshare Owners Report. The report is a study of timeshare owners across the United States and gives people in the industry a snapshot of timeshare owners and any new trends. The report found 6 out of every 10 timeshare owners were age 45 or older and reported an annual household income of $92,405, however the study indicated that 58% of all new timeshare owners were under the age of 45 showing timeshares are not just for baby boomers and retired travelers, they also appeal too a new generation of vacation seekers. Timeshare owners who purchased a timeshare recently stated they decided to buy a timeshare for a number of different reasons including condition of resort accommodations, reputation of timeshare company, and to save money on future vacations. The report also indicated that travelers are renting from a timeshare resort before they decide to buy, basically testing the product instead of purchasing site unseen. Of the new owners surveyed 4 out of 5 purchased a timeshare directly from the resort.

The Good and Bad
There are a couple of trends that I find encouraging for the timeshare industry and timeshare buyers alike. The report indicates that more people below retirement age are beginning to see the benefits of owning a timeshare and deciding to buy a timeshare. This means there is a whole new generation of travelers that will be interested in timeshares and searching for bargains around the world, opening up numerous possibilities for both resorts and the secondary market. I was also pleasantly surprised to find that many of the new owners had decided to rent a timeshare at the resort they were considering before actually purchasing a week. For years I have been telling potential buyers to not only search reviews on the internet but visit the resort itself and view all of the amenities with your own eyes before purchasing. When visiting the resort be sure to note all amenities, likes and dislikes, and services offered by the resort, this will help buyers make an informed decision and be less likely to experience buyer’s remorse when they do finally decide on the resort.

The summary of this report indicated that 4 out of 5 new timeshare owners were still purchasing a timeshare directly from the resort. This shows that travelers are still overpaying for timeshare units and made to believe that purchasing from a timeshare resort is the best option. However, in the resale market the same unit can be purchased for a fraction of price, regular readers of this blog know how big a mistake these new owners are making by purchasing from the resort. One of the main reasons those surveyed gave for purchasing the timeshare was cost savings in the future, why not purchase a timeshare resale and save thousands of dollars from the very beginning of the experience. This shows many people do not know about purchasing a timeshare in the secondary market before it is too late.

Overall timeshare owners have been happy with their experience as 86% of them said that owning a timeshare was an excellent, very good, or good experience. What do you think, how has your timeshare experience been?

Many new timeshare scams seem to be invented or recreated each year, it is really hard to go even a week most of time without hearing about a new variation or completely different scam invented to separate timeshare owners from their money. Recently I read a story out of Oregon on one of the local TV stations websites exposing a new instance of one of the oldest scams on record, the Ponzi scheme. KTVZ, an Oregon television station, reports that this latest timeshare scam was a nation wide operation and brought in an estimated 428 million dollars in revenue before the system came tumbling down. In Oregon it is estimated that nearly 5 million dollars was taken from residents before the scam was discovered. The type of scam that was used in this case is known as a Ponzi scheme, which originated around 1920 and is named after its inventor Charles Ponzi. This type of scheme has recently been in the news because it was used by Bernard Madoff in the largest investment fraud on Wall Street to date. If you would like more information about the Oregon timeshare scam or have been affected by it you can read the entire article here, “Time-share scam salesman: ‘We were victims, too’”.

How Does A Ponzi Scheme Work?
While we do not claim to be any expert on this matter or anything in the legal field we have developed an understanding of this type of scheme and would like to share the information. A Ponzi scheme starts off with a sales pitch most of the time an investment opportunity, in the above case the clients were advised to invest in Mexico timeshares which would yield high returns while being rented out through a number of different affiliates and partnerships. In reality the “Investment” opportunity normally generates little or no income revenue. In order to keep any suspicions at rest the creators of this scheme use money from new investors to pay older investors making them believe that their investment is really paying off and was a good transaction for their future. Eventually the money will run out and the scam collapses under its own weight, at this time everyone involved realizes they have been scammed and will never see their money again. Perhaps the most interesting part of the story reported by KTVZ is the salesmen who were selling the investment opportunities did not have any clue that they were even involved in the scam, they were hired to sell the investments and were paid via commissions on their sale, which were held by the creators of this scheme making the salesmen victims, in their minds, as well as the investors. Ponzi schemes can be carefully planned out and generate an extraordinary amount of income for the original creator, in fact Bernie Madoff’s variation of this scheme generated 65 billion in revenue before it collapsed.

Ponzi schemes are very hard to spot, the best advice we can give is to ask a lot of questions and research any investment opportunities you are contacted about to the fullest extent. Always remember if it sounds to good to be true chances it probably is. If you were contacted in reference to this scam or any other scam we would love to hear your story and if you have taken any steps to rectify the situation.

It seems there is some controversy coming out of the Hawaii timeshare community, mainly from one resort in particular the Point at Poipu. This resort is currently managed by Diamond Resorts International, a well known name in the timeshare industry. It seems that recently owners have shown a growing concern for the raise in maintenance fees at this resort which have increased by 50% in the last two years and almost doubled in the time period between 2001 and 2009. From the story I found the owners are upset because they have no say as to when and how much the maintenance fees are increased. The board of directors for the resort voted unanimously to increase the fees given to owners to help cover operating costs and upgrades throughout the resort. All board members were duly elected to their position according to Hawaii law, however three of the board members are considered “developer reps”, basically giving the management company the ability to pass any vote presented to the board. Mike Givens of Janas Consulting Management has recently started an initiative to try and find new management for the resort and bypass Diamond Resorts International. Givens said “It’s a matter of the owners taking legal steps to bring the management company to the table to get something done, as long as the majority of owners desire to do so, they can remove management.” Diamond has threatened to sue Givens for interfering with business operations and making defamatory, false statements. If you would like to read further about this situation and the parties involved the above information was pulled from the following two articles, “Diamond Resorts threatens legal action” and “Point at Po‘ipu timeshare owners struggling with management”.

Maintenance fees are a necessary evil to keep any resort in operation, after all they cover most of the day to day operations of the resorts and any improvements that the resort will undertake, ie upgrades in furniture for the rooms, new television, and new amenities throughout the resort. It seems there has been a trend lately where many resorts are raising these fees despite the current state of the economy. There are a couple of reasons that come to mind when trying to figure out the resort’s position in raising maintenance fees in a bad economy. The first goes hand in hand with the economy, since people are finding they have less money to spend and are trying to save more they may default on their timeshare property if a number of people do this the resort is forced to raise fees for the owners who are left. Simply put there are now less people paying but the cost remains the same no matter how many owners buy into a given resort. The second may have to do with inflation, which everyone is familiar with. Due to inflation the cost of items necessary to run a resort will rise such as utilities, paper goods, insurance, and other items used in the day to day operation of the facility. Since the resort is required to have all these items the cost passed along to owners in the form of maintenance fees and special assessments. Obviously these are just a couple of reasons why owners continue to see higher amounts being expected from the resort, these may not apply to every case.

We know that many of the readers of our blog are timeshare owners themselves, what do you think about your current maintenance fees, are you happy with them are they too high? If you are the owner of a resort where many owners felt the fees were to high what actions were taken by the board of directors or owners association? If you have other suggestions on why fees would rise we would love to hear those as well.