Reports from American Resort Development Association show that US timeshares generate over 10 billion dollars per year. There are around 13 million nights rented at timeshare resorts. These resorts contribute over 90 billion dollars to the economy. Types of Timeshares –
If you want to know more about the different timeshares there are before your next vacation, then just read further. This helpful guide will show you what you need to know about the timeshare options that are out there to choose from. Study these options today and you’ll know which one works best for you.
Timeshares: The Basics
How does a timeshare work? Here’s what you need to know about the timehshare options that are available to you.
What’s a Timeshare?
A timeshare is a single unit that’s bigger than most hotel rooms. A timeshare rental usually has other features like a kitchen, private bedrooms, or laundry facility.
A timeshare property usually has more than one owner. Each owner owns an individual period of time at this same property.
Timeshare owners all pay for property-related fees. These fees range from property taxes to monthly maintenance fees.
Owning a timeshare also means you pay for portions of repairs and utility fees as well. A timeshare owner has to pay for these costs whether or not they are on at the property.
Different Types of Timeshares
Timeshares come in three primary options. These options include a right-to-use contract, fee-simple contract, or a vacation club contract. Here are the basics of each contract type.
Right-to-use timeshares lets an owner buy rights to stay at the timeshare during specific periods throughout the year. A right-to-use option doesn’t mean that you are “buying” a timeshare. The resort management company or developers own the property’s title.
A fee simple or deeded timeshare offers a group of timeshare owners the ownership and title rights to a specific building. Fee simple timeshares allow an owner to loan, sell, or rent their share when the time is right for them.
A point, or vacation club point, system lets you buy the points to stay at timeshares located near popular vacation destinations. You can also use the point system to use another vacation property within the same club network.
Sometimes these club network systems might also let you use the same points for other vacation expenses you might have like rental car or airline ticket costs. Most vacation point systems have strict cancellation policies. Travelers must follow these policies in case travel plans get canceled.
To understand more what these policies are all about, check out the policy for Hilton Grand Vacations Club resorts. The cancellation policy for HGVC lets the resort maintain their occupancy rate and re-book the reservation to someone else.
What Are Your Next Steps?
Still wondering which timeshare option is best for you? A lot depends on what your future plans are.
If you want a go-to vacation spot at a popular resort or amusement park, the vacation points system may be best for you. If you want a long-term investment opportunity, do more research on a fee simple or right to use option. Your local real estate office can help you with this investment decision as well.
You can also visit our website for more information on the types of timeshares. We can help you decide which vacation arrangement is best for you.