Are you interested in starting a resort business but haven’t quite got the funds yet? If so, have you considered owning a timeshare? If you’re happy with what you read, perhaps investing in one may be right for you.The main basics that everyone should know when Starting a Resort Business.Look at this article to learn all about Starting a Resort Business
6 Things to Know When Starting a Resort Business
What is a Timeshare?
A timeshare is a divided form of ownership. Each owner has an allocated time to use the property they have invested in, typically for a number of weeks.
There is a lot of information you will need to know about timeshares before you enter into an agreement. This is because they differ from house buying.
What Is the RCI Calendar?
Royal Condominiums International Incorporated (RCI) was established approximately 50 years ago. Their calendar, the RCI Calendar, is used by most resorts for people to plan their vacation time. Each week in the year has a corresponding number that is used to make bookings. This calendar can be important when investing in timeshare ownership as it can help you decide whether the time period offered is the right one for you. However, not all resorts use this calendar, so it’s always advisable to initially check with the resort to determine the weeks you want to use.
What Are Fixed and Floating Weeks?
Fixed weeks are typically set weeks in the year that can be identified by the number on the RCI calendar. Ownership of fixed weeks does not change and remains the same throughout your timeshare.
In contrast to fixed weeks, floating weeks can be used anytime during the year, subject to availability. Bookings for weeks are made within the season of your ownership. Prime weeks during certain seasons may be in demand from other owners, which you will need to consider before entering into timeshare ownership.
Are There Any Other Types of Ownership?
Yes, there are and include; timeshare points, fractional ownership, and even years or odd years ownership. Being aware about timeshares that are different from the popular fixed and floating weeks may help you make a better decision about the type of ownership you want.
Timeshare points is a points-based form of timeshare which can be used during any time of the year. The more points provide more booking flexibility during peak seasons, larger accommodation, or a higher rated resort. These types of bookings are subject to availability.
Fractional ownership is when you purchase a timeshare, usually leasehold, for a lower price. It’s lower because you are responsible for the property’s maintenance yourself. When the lease expires, and unless all the owners want to extend it, they will receive a share of the sales proceedings.
With even or odd year ownership, just as their respective name suggests, you can only use the timeshare if the year corresponds with the type of ownership you have. So, if you purchase an even year timeshare, you can only use it during even years. This type of scheme is beneficial to those who do not want to pay yearly maintenance fees.
What Are the Maintenance Fees?
The owners of the resort your timeshare property is in will charge you a yearly maintenance fee, which usually covers general maintenance, insurance, cleaning, refurbishments, insurance, and any taxes. There is no set fee, so they will vary from resort to resort, taking into consideration the size of the property. It would be advisable to know the fee and what it covers prior to entering into any timeshare. Failure to pay these fees on the agreed date could lead to court proceedings against you as well as prevent you from selling your timeshare.
What if I No Longer Want My Timeshare?
You can sell it. However, timeshare resales can be a minefield, so doing a bit of research about timeshare resales, particularly the terminology for both the buyer and seller, will better prepare you. Understanding the listings will help you make a better choice. It may even save you money.
Undoubtedly purchasing a timeshare can be an exciting time, whatever your reason for doing so. However, it is vital you know what you are entering into because you do not want to make a loss on what can be a substantial investment. It is different from buying a first home, so do not assume it is the same thing or even similar because the most important aspect is you will not be the sole owner of your timeshare, and this brings other responsibilities within itself.