Do You Pay Monthly for Timeshare? Here’s Exactly What You’ll Owe

People think buying a timeshare is like buying a vacation home - you pay once, then you’re golden. But that’s not how it works. If you own a timeshare, you pay every single year. And yes, that includes monthly payments - not just one big upfront cost. Most people don’t realize this until they get their first bill. Then they’re stuck wondering why they’re paying more than their rent.

What You’re Actually Paying For

A timeshare isn’t a property you own outright. You own the right to use a unit for a set time each year - usually one week. The resort or developer sells these time slots to dozens, sometimes hundreds, of people. That means the cost of keeping the place clean, staffed, heated, and repaired gets split across all owners. And that’s where the monthly fees come in.

These aren’t optional. They’re called maintenance fees, and they cover everything from pool cleaning and elevator repairs to insurance and property taxes. Even if you never show up, you still pay. There’s no vacation mode. No pause button. If you skip a payment, you risk losing your ownership rights.

In New Zealand, the average annual maintenance fee for a timeshare is between $1,200 and $2,500. That breaks down to $100-$200 per month. But it’s not just the base fee. Some resorts add special assessments - unexpected charges for major upgrades like new roofs or HVAC systems. One owner in Queenstown got hit with a $1,800 one-time fee after the pool pump failed. No warning. No vote. Just a bill.

Monthly vs. Annual: How the Billing Works

You might think you’re paying annually. But most timeshare management companies collect fees monthly. Why? Because it’s easier for them to cash in steadily. It also makes it harder for owners to skip payments. You can’t just forget about it until December.

Here’s how it breaks down:

• Monthly payment: $100-$200 on average
• Annual total: $1,200-$2,500
• Special assessments: $0-$2,000+ per year (unpredictable)
• Exchange fees: $100-$300 if you want to swap your week for another location

Some companies bill quarterly. Others bill annually. But if you’re told you only pay once a year, ask to see your contract. The fine print almost always says fees are due monthly, even if they’re collected in lump sums.

Why the Fees Keep Going Up

Timeshare fees don’t stay flat. They rise every year - usually 3% to 8%. That’s higher than inflation. Why? Because resorts don’t control their costs. Labor is pricier. Insurance premiums have doubled since 2020. Energy bills? Up 40% in five years. And let’s not forget that many timeshare properties are in remote areas - think beachfronts, ski towns, national parks - where everything costs more to deliver and maintain.

In 2024, a Timeshare Users Group survey found that 78% of owners saw their fees increase by more than 5% the previous year. One owner in Rotorua saw his annual fee jump from $1,400 to $1,900 in two years. No new amenities. No upgrades. Just higher costs passed along.

There’s no cap. No limit. The management company can raise fees whenever they want - as long as they give 30 days’ notice. And if you don’t pay? You’ll get dinged with late fees, then collections, then legal action. Some owners end up owing more than their original purchase price.

Hidden Costs You Can’t Ignore

Monthly fees aren’t the only thing eating your budget.

• Exchange fees: If you want to use your week in Bali instead of Queenstown, you pay a fee - often $200 or more - just to book it.
• Booking fees: Some resorts charge $50-$100 just to reserve your week, even if you’ve owned it for 10 years.
• Point systems: Some timeshares use points instead of weeks. The more popular the destination, the more points you need. That means you might need to buy extra points - at $10-$20 each - just to get a decent spot.
• Transfer fees: If you ever want to sell or give away your timeshare, expect to pay $500-$1,500 in administrative fees.

One Auckland couple bought a timeshare in Tauranga for $18,000. Ten years later, they’d paid over $25,000 in fees. They never even used it for two full weeks. They’re still paying.

Can You Get Out of It?

Yes. But it’s expensive and messy.

Most timeshare contracts are designed to trap you. They’re long-term - often 20 to 99 years. And they’re transferable only with the resort’s approval. That means you can’t just sell it on Trade Me. You need to go through the resort’s resale program, which often charges 30-50% of the sale price just to list it.

Some people try to donate their timeshare to charity. But few charities will take them. The costs of managing the property outweigh the tax benefit.

There are companies that promise to get you out for $3,000-$5,000. Most are scams. The FTC and New Zealand’s Commerce Commission have issued multiple warnings about timeshare exit scams. The only safe way out is to work directly with the resort or hire a licensed real estate attorney who specializes in timeshare law.

And even then, you might still owe money. Some resorts require you to pay off all past-due fees before releasing you from the contract.

Who Should Avoid Timeshares?

If you’re thinking about buying a timeshare, ask yourself these questions:

• Do I travel the same week every year? (If not, you’ll waste your week.)
• Can I afford $100-$200 every month for the next 30 years? (Even if you never go.)
• Will I still want to go to the same place in 10 years?
• Do I have a backup plan if the resort goes bankrupt or changes management?

If you answered no to any of these, don’t buy. Timeshares aren’t investments. They’re lifestyle expenses - and expensive ones at that. You’re not building equity. You’re paying to keep a door open.

There are better ways to get vacation access. Renting through Airbnb, booking early with hotel loyalty programs, or even joining a vacation club like Interval International cost less and give you more flexibility. You don’t lock yourself in. You don’t pay for things you don’t use.

What to Do If You Already Own One

If you’re already paying monthly fees and regretting it:

• Check your contract. Look for clauses about fee increases and exit options.
• Join a timeshare owner group. There are active ones in New Zealand - like Timeshare Owners NZ - where people share tips and legal advice.
• Stop paying? Don’t. That leads to credit damage and lawsuits.
• Try to rent it out. Some resorts allow owners to rent their week to others. You might cover your fees.
• Consider donating it to a nonprofit that accepts timeshares - rare, but possible.

There’s no magic fix. But you’re not powerless. You just need to act before the fees keep climbing and the debt piles up.

Final Thought: It’s Not a Home. It’s a Bill.

A timeshare feels like a vacation home. But it’s not. It’s a recurring expense with no resale value, no flexibility, and no escape. You’re not buying property - you’re signing up for a lifetime of bills. If you’re thinking about buying one, pause. Look at your bank statement. Ask yourself: Do I really want to pay $150 every month for the next 30 years - just to get a week in a place I might not even like anymore?

If the answer isn’t a clear yes, walk away. There are better ways to enjoy holidays - without the debt.