How to Offset Maintenance Costs

by Vincent Lehr, TimeSharing Today

Being in the industry for over a decade has taught me one important thing: timeshare owners do not like maintenance costs. There are several techniques owners overlook that can help them offset or alleviate them from the ongoing costs of their maintenance costs. Now there is no magic wand you can wave and not pay maintenance; you will still have to pay the developer and yes they will continue to go up. However, if you are a smart owner and think a little bit outside the box, here are some of the best strategies I have heard from owners to offset the costs of maintenance. I myself use a combination of a few of them to maximize my savings.

Basic Techniques

Utilizing the kitchen

Many owners forget the fact that they have access to a full kitchen in most all timeshare units. Now most people don't go on vacation to cook, and I can relate. However, you do save money on drinks, snacks, alcohol, breakfast and some meals. Going out to eat in a vacation area is typically $30+ dollars these days. Also, if you go out to a nice dinner you have leftovers that you can eat the next day, all of which can't typically be done in a hotel. Using the kitchen on vacation can typically save you 20-60% of your maintenance costs if you compared it to staying in hotels having to eat out every meal and buy every drink.

Bartering for goods and services

Another option many owners overlook is using some of their time for goods and services. These days there are several internet websites that allow people to trade for everything from goods to services. I have owners trade time they weren't using for accounting services, home repairs/painting, car repair, flooring, and various different products. I have even had one owner trade for a car. It wasn't a Ferrari, but still a car. This may not be an option for you, but humans have been bartering since the beginning of time and it is still as applicable today as it was back then. Maintenance fee recovered is typically 30-300%.

Bringing friends and family

Many times timeshare owners bring friends or family with them on their trip. This is a great opportunity to save them money as well as recoup some of your costs. Now you probably will not charge your Mom or Grandmother when you go on vacation, but if you have friends of family they typically will want to "chip in" to help out. Now most people don't want to charge, but remember even though you don't pay when you check out, there are still costs associated with the timeshare. Unless your friends are broke, most people won't mind pitching in a little bit to help out. That could pay for your airline ticket or food on your trip. Maintenance costs savings typically 20-60%.

Advanced Techniques

Renting out part of your time

One of my favorite techniques for recouping costs, and one I think is great for multiple week and points owners, is renting out some time. Now the key to a successful rental is booking a prime time week in a high destination area for a major holiday. I am not just talking about renting out some random week, but a major vacation like Christmas in Hawaii or New Years in Las Vegas. Typically, with most developers, the only way to get a good time is to book the first day possible, typically a year in advance. By booking a prime week, you increase your chances of getting a renter tenfold.

With several companies, offering different options to get paid it is possible for any owner to accept a major credit card as payment. There are also companies that provide timeshare owners with an insurance policy for total peace of mind.

My friend and I have 20 weeks a year at the Jockey Club in Las Vegas where we have been renting for several years with much success. Now I don't think you will turn into Donald Trump renting out your timeshare, but you can recoup 60-250% of your maintenance costs every year. Just as a notice, most people will just a rent a few nights of their points on some major holidays.

As always, never pay companies that call you on the phone promising you the world, as in most all cases they are fraudulent and will just take your money.

Conducting business on vacation

Being an American and at the average income of a timeshare owner, taxes are your number one expense. Most timeshare owners still conduct business while on vacation, own a rental property, or own a business or side business. The way timeshares are sold, there are no tax benefits except for the mortgage interest and a little bit of taxes in the maintenance fees. These usually don't add up to much in deductions, but there are other ways to incorporate your timeshare into your life that will give you additional tax deductions. I am not an accountant or financial advisor, but I do have a great one and have learned many techniques from owners as well. Now the Internal Revenue Service regulations change yearly, but most of the business ones stay relatively the same.

If you conduct business on your trip per IRS rules, you can deduct the costs of your traveling expenses and a little bit of your food if it relates. It is just the same as you paying for a hotel room; however, you just depreciate the costs of the timeshare and this will give you a great deduction. If you own rental real-estate, you are allowed to look for real-estate in other areas and deduct those costs as well. Many people have their rental properties set up in a corporation or have a business on the side and you use your timeshare as part of the business deducting many of the expenses that way.

As with anything I always' recommend hiring a professional like a business CPA to make sure you are following the rules correctly, but this will save you thousands of dollars a year for very little work. This will take you less time than a timeshare tour and save you thousands annually.

Now I am not advocating doing anything illegal, but to be smart with things already in your life and make sure you are taking every deduction you are owed. The cash value of a deduction could be anywhere from 18-35% and more if tax rates go up. This could recoup 30-200+% of your maintenance cost.

You may not use any of these techniques or you may use nearly all of them like me; the choice is yours. Let me tell you though, your timeshare will be even more enjoyable if you eliminate those maintenance costs and take better vacations then most. You can offset your costs, triple your time, and stay at the best 5 star resorts.

Happy Traveling!