Millions of people make investments in timeshare properties every year. For those of us who dream of owning vacation property but can't afford such a luxury, timeshare is the next best thing. In fact, in some cases, it's even better because timeshare owners often enjoy the flexibility of "banking" time in properties throughout the world rather than just one property.

The theory of timeshare is relatively simple; owners share a single condominium unit with other owners. The average timeshare condominium has about 50 owners during the course of one year -- that translates into about one owner per week each year. Any remaining weeks either are consumed by owners who have banked more than one week; or by maintenance crews who thoroughly clean the units after each owner departs.

The property in which an owner makes his first investment is referred to as his "home" property. The real advantage of owning timeshare, however, is in your ability to trade your usual week in exchange for a stay at more than 4,000 timeshare properties throughout the world. While many smaller timeshare companies exist, among the largest are Resort Condominiums International (RCI) and Interval International (II). Most timeshare companies have a presence on the Web, so you can peruse their respective properties in various countries and decide to trade your week if you'd like.

Your expense is derived solely from the time that you use the property. As a timeshare owner, you're also required to pay a maintenance fee, an expense shared by all other owners of your unit. That maintenance fee, usually ranging from around $200 to $500 per year, guarantees (theoretically) that when you arrive at your unit, the unit is clean, carpets have been vacuumed, dishes and silverware are well-stocked and clean, and your basic necessities -- such as glasses, blankets, toilet paper, etc. -- have been provided. The fee also pays for landscape and pool maintenance, taxes, utilities, lease and land payments, the management company and more.

Aside from the maintenance fee, you are responsible, of course, for stocking your own groceries. Many timeshare properties offer shopping services for owners (for a fee); before they arrive, owners fill out a grocery list and submit to the company, so when they arrive, their pantries and refrigerators already are full.

If you've committed to a particular week each year -- for example, the third week in March -- you're entitled as a timeshare owner to exchange that week either for another resort (assuming that the resort in question has space available when you want to travel), which is called an external exchange; or you may do an internal exchange within your own resort, electing to travel during a different week. In that case, you may either get the same unit you've had in the past (if that week is empty, or if the previous owner of that week has changed his or her plans); or you may end up in a different unit -- sometimes a larger or smaller unit depending upon what's available. Obviously, the sooner you can notify your resort, the better your chances of securing what you want.

If for any reason you can't use your week, you won't lose it; instead, you can "bank" it with either your own exchange company or any other exchange company. Owners usually are allowed to bank weeks for up to two years; check with the company you use to verify that time limitation. This allowance gives owners considerable flexibility. The following year, you can add your "banked" week onto your usually scheduled week for a two-week vacation; or you can take two separate vacations either at the same property or at different resorts. Owners may even rent out their units if they'd like, or give them to family members or friends as gifts.

If you decide to rent out your week, you'll want to ask for a rental amount of anywhere from about $350 to $700 per week, depending upon the size and location of the property. You'll want to make sure you're compensated for your maintenance fee; many owners who rent out their properties ask for a rental amount that equals roughly twice the amount of their maintenance fee. So if you're paying $300 per year in maintenance fees, you'd ask for $600 per week to rent out your unit.

As an owner, you may want to consider attending a homeowners' association meeting, much like one you'd attend if you owned a condominium year-round. During these meetings, you may express your concerns, meet with other owners, generate ideas and suggestions and more.

You'll notice many timeshare properties on the market each year; many owners decide to sell if their lifestyles change -- for example, they own a ski resort property and no longer ski often enough to justify the ongoing expense of the property. If you're in the market to purchase one of these properties, experts say you're probably better off buying directly from other owners rather than contacting a resort and expressing your interest in buying a property. When you purchase a resale property, you'll receive a deed and title policy provided you use a licensed insurance company. If you decide to sell your own timeshare property, you can seek out various companies who advertise timeshare; many of them are on the Web and offer the services you'd get from a typical REALTOR®, such as securing the necessary financing and negotiating various stages of the transaction, most notably the closing.

Timeshare properties are an extremely popular choice among travelers worldwide. They offer tremendous flexibility and provide homelike surroundings in otherwise unfamiliar environments. They're particularly good choices for families with young children, as they provide more space, a little room for play, and the option of preparing meals at home rather than subjecting children to restrictive restaurant menus (and parents to high restaurant bills). With more than 4,000 timeshare properties throughout every corner of the world today, as a timeshare owner, the world is quite literally your oyster.

Published: April 13, 1999

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