For those not knowing what a special assessment is, in brief we will explain. As per every timeshare maintenance fees are payable, these fees do what it says on the tin, they pay for resort and accommodation maintenance. A special assessment is an unforeseen expense that timeshare owners have to contribute towards.
If hurricane Doris rips through central Florida and tears off the roofs of timeshare property, this is likely to be covered by resort insurance. On the other hand, if the resort swimming pool develops cracks and leaks and needs rebuilding then this cost may well be passed on to the timeshare owners by way of a special assessment. Special assessments are rare in European timeshare but they can still arise. Back in 2016, Diversified Resorts received a rather large tax bill due to a change in the Spanish tax system. Although reduced from the original €7.9m to €2.9m, to pay this bill it was passed on to timeshare owners. According to the trustees, FNTC this was correct that owners pay in line with the trust deed. Our report on this may be viewed here.
Marriott Maui Ocean Club
Timeshare owners at Marriott Maui Ocean Club have recently received their maintenance bills for 2024. Contained within the bill is a special assessment for plumbing reserves, what quite plumbing reserves are we are not sure but it would imply that major plumbing works need to be carried out.
In a communication to owners it was stated that maintenance fees would increase by 9.8% over the 2023 fees, 90% due to increases in tax, insurance etc. Also tagged on was the special assessment fee:
On the assumption that these figures are relative to a one week interval, this means the total plumbing reserve will be just under $130,000, this assumes 50 weeks per villa, 2 held back for maintenance. Wow, must be some major plumbing works going on!
TCA comment
Call us stupid but we thought that the whole idea of maintenance fees was for maintenance. Are we entirely wrong in coming to the conclusion that resort plumbing isn’t included, obviously so. The reality of this additional cost is that the real increase on fees over the 2023 figure is not just 9.8% but slightly over 23% (3 bed MOC 2).
We appreciate the devastating fires experienced in Maui earlier this year certainly cost businesses in general, and reparations don’t come cheap. Maybe, as stated in the information to owners, the insurance premiums have had to rise together with other costs but we still fail to understand what a plumbing reserve is.
If you own your own home then for sure you are responsible for every maintenance expense, including plumbing. With timeshare all you own is the right to holiday, this being the case, why are owners having to stump up this additional cost? We are sure that the Association of Apartment Owners (AOAO) can explain but for now the mere mortals at TCA are at a loss.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk