How Suite It Is
Spring/Summer 2008 Girlfriend Getaways> Subscribe Now
3. What extra fees are involved?
"Maintenance fees, real estate taxes, usage fees, special assessments—it goes on and on. You need to know what you're getting into so there are no surprises," says Lisa Ann Schreier, a former time-share saleswoman and the author of Surviving a Timeshare Presentation: Confessions From the Sales Table. Maintenance fees for fractional properties are about double what they are for time-shares—about $1,200 per week versus $550, according to industry analysts and the American Resort Development Association. One thing to note: All those fees don't always give you a say over capital improvements to the property, or the right even to decorate to your liking, since you're sharing the unit with a number of different owners.
4. How can I shave costs?
"Preconstruction sales can help you lock down your fractional early," says Amy Gunderson, the editor of halogenguides.com, a website that analyzes the fractional industry. The risk is that if sales go slower than expected, the entire project could be scrapped. You won't lose your down payment with a well-known resort like the Ritz-Carlton, but tying up your capital can be a pain. Another way to reduce the cost is to buy a resale fractional from somebody who doesn't want his or her property anymore. Schreier says that because selling shared-ownership real estate is generally more difficult than selling wholly owned properties, buyers tend to get good deals.
5. What are the amenities like?
One of the major selling points in every fractional brochure is the amenities—people want the resort lifestyle with the benefits of owning a second home. But make sure you know exactly what's included and what's not. With spas, for example, ask if you merely get access to the facilities, with treatments costing extra, or if you'll be entitled to discounted services or other special benefits. Resorts have been known to offer different types of perks when it comes to golf courses, too. Fractional owners at the Residence Club at PGA West in La Quinta, Calif., pay less than the general public to play golf on five courses in the area; furthermore, they receive preferential tee times and access to a private clubhouse.
6. Can I rent out my property?
If you don't plan on using all of your weeks at your property, renting it out makes financial sense. You need to study the details of your real estate agreement, however. If you put your property in the resort's rental pool, you could lose the power to set the rental price and to decide who rents the place. You may also forfeit a portion of the profits. "I've heard of cases where as much as 35 to 40 percent of the rental fees goes to the management company," Schreier says.
7. Will I get to determine which weeks I stay at the property?
Sharing a vacation home is all about compromise: Certain weeks are always popular, such as those around holidays, and you won't always get the time you want. "You can't get Christmas at your fractional every year," Gunderson says. "You might be assured a holiday or two a year, but it's likely by allotment." In some cases, you may be able to purchase additional time at the resort beyond your fractional agreement, but that depends on whether space is available in another unit. The best way to ensure that you get the weeks you want is to plan your vacations far in advance, sometimes as much as a full year.
Print this article
Order your own copy of Girlfriend Getaways, or send one as a gift to a girlfriend. Only $6.95 in the US and $7.95 in Canada (includes shipping and handling).
