Yes, this is the timeshare guru here. Chat and comment today on management companies in the timeshare industry and land development. The next statements would be based on two things. First, more than thirty years of experience as a senior executive in the industry. Second, from what we have found to be the normal industry situation across the board.
After implementing the most successful sales and marketing programs in the timeshare industry, we can say that timeshare and management companies today could be compared to fire and water. The timeshare project is fire, the management company is water. It looks good on paper, but what the HOA or HOA did not see is that the fire contains flammable liquids that water does not extinguish. Or, on the other hand, the management company saw an opportunity for what most would say is “easy money.”
Why is it easy money? Homeowners associations and homeowners associations are overwhelmed with unsold inventory, defaults, and delinquent accounts, just to name a few interest issues. All of these concerns are the deciding factor of the “cost” to maintain the ownership base. Increased maintenance fees, special evaluations, and the list goes on and on. The real question is, do these resort management companies have a solution to all of these problems? Actually, the answer is “NO”. Yes, they come to the table and promise this show and that show, but do they work? Going back to reality, does a bandage on a severed artery permanently stop bleeding? Through serious and lengthy research, I have found that most of today’s management companies add to the discomfort of the owner base as a whole due to their ability to carry out a normal business environment for the project in Yes. Timeshare projects managed by homeowners associations or property owners associations that are run by companies without a knowledgeable and successfully trained sales and marketing staff really have no chance of survival. This would be equivalent to a patient who has a terminal cancer disability. It’s just a matter of time. Maintenance fees will continue to rise, (regardless of which management companies get their share) special assessments will continue to rise, this dilemma is endless. That special timeshare that each person loved and enjoyed has now become a financial burden.
Cost vs Reality! Today, all homeowners associations and homeowners associations are being hit by what are called “title return” businesses. These predators pray in the resorts that have been buried for the fees that the management companies seem to create. They invite timeshare owners to meetings and make them pay to get out of their timeshare. What is a company with returned deeds? It is a fictitious company formed somewhere legally that is planned in advance to fail or simply dissolve. So what happens to a resort is a serious drop in cash shortage. The complex accumulates a large amount of unsold excess inventory, it is a snowball effect. But it doesn’t really affect management companies, they will only receive less in management fees if they don’t take drastic steps to maintain an influx of income. Currently, most management companies have no other solution to problems other than continuing to increase fees to existing owners. These situations have a serious economic effect on the complex and on all of its owners. All of these problems can be avoided.
When hiring a property management company today, serious questions should be asked. To maintain a strong and healthy resort environment, all property management companies “MUST” have an experienced sales and marketing staff on board in today’s on and off property environment. Most property management companies have no idea what it takes to maintain a strong resort financial system. Many will “improvise” it just to survive. They depend on your “rental” schedule to make up the difference. Great in a dream, it’s not going to happen in the real world unless we’re giving away these rentals. Ask any management company if they were able to rent all the units on any project in the month of April in Garden City or Park City, Utah. Avoiding the downfall and expense your HOA or HOA will create by not knowing how to choose or hire the right company could be the difference between success and demise. Homeowners pay the price for poor decisions made by the HOA and HOA boards. Sales are sales, but sales experienced in the proper industry are the proper compound for fire containing flammable liquids.