The Ultimate Guide to Timeshares

Whether you’re booking a familiar favorite or using a points system to explore new destinations each year, the appeal lies in having trips pre-planned and accommodations handled.

This guide walks through the entire picture. What are you actually buying? How do you get out of one if your travel goals change? We also explore how a timeshare stacks up against newer alternatives like fractional home ownership, for those looking to compare options.

What Is a Timeshare and How Does It Work?

A timeshare is a vacation arrangement where multiple people share the right to use the same unit for a set time each year. You’re not buying the entire property—you’re securing access to it on a recurring basis.

There are three primary formats:

• Fixed week – Same time, same place, every year
• Floating week – You book your time within a specific season or window
• Points-based system – You buy points to use across a network of properties

While some timeshares are tied to one location, many modern programs offer access to multiple destinations through resort networks like RCI and Interval International.

Deeded vs. Lease-Based Ownership Explained

Timeshare ownership comes in two basic types:

• Deeded ownership: You legally own a share of the property. It can be sold, inherited, or willed.
• Lease-based (Right-to-use): You have a contract to use the property for a fixed time (often 20–99 years), but no real ownership.

Only deeded timeshares provide lasting legal rights. Lease-based models expire and often carry fewer resale options.

Who Is a Timeshare Really For?

A timeshare might work well for you if you:

• Enjoy returning to the same destination or style of vacation
• Prefer structured, planned trips
• Appreciate resort amenities but don’t want to maintain a full property
• Travel consistently every year

It may not be a good fit if you:

• Want maximum flexibility in when and where you travel
• Expect life changes that affect your schedule
• Are seeking real estate investment or appreciation
• Prefer to avoid recurring fees and long-term contracts

Example: A retired couple who visits Maui every February might love the predictability of a fixed-week timeshare. But a family with changing school breaks or evolving interests may find it too restrictive.

How Much Does a Timeshare Really Cost?

According to the American Resort Development Association (ARDA), the average price of a timeshare transaction in 2022 was $23,940. As far as maintenance fees go, the average fee is around $1,170 / per week interval according to the ARDA’s 2023 State of the Industry Report.

Typical additional costs:

• Annual maintenance fees: $1,170+
• Special assessments: Unplanned charges for renovations or repairs
• Financing: Many buyers use high-interest developer loans
• Exchange or club fees: For trading destinations or joining a points network

Estimated 10-Year Cost Breakdown

• Initial purchase: $23,940
• Maintenance fees (avg. $1,100/year): $11,000
• Other fees and interest: $3,000–$10,000+

Total over 10 years: $35,000–$50,000+

Many people could book comparable vacations using that same budget—without being locked in.

Financing, Fees, and Hidden Costs

Be cautious if offered on-the-spot financing. Many developers charge double-digit interest rates, and payments are often due regardless of whether you use your timeshare.

Other common charges:

• Reservation/change fees
• Club dues
• Transfer fees
• Insurance or property taxes (in some regions)

Always request a full cost breakdown and never rely solely on the sales presentation.

Advantages of Timeshare Ownership

• Consistency: You know what you’re getting each year
• Amenities: Pools, gyms, on-site dining, activities
• Ease of use: Less planning or decision fatigue
• Exchange opportunities: Many programs allow destination swapping

For those who value routine and comfort, it can deliver a predictable, relaxing travel model.

Disadvantages and Risks to Consider

• No equity: You don’t own real property (except in deeded models, and even then, value is minimal)
• Ongoing fees: You must pay every year, even if you don’t travel
• Limited flexibility: Especially for peak weeks or short-notice trips
• Resale difficulties: Most resell for far less than the purchase price—if at all
• Hard to exit: Contracts are legally binding and often permanent

Common Timeshare Scams to Watch For

Most scams occur during resale or exit. Be cautious of:

• Upfront fee resellers: They promise a buyer, take your money, then disappear
• Exit companies: Legal-sounding services that don’t actually release you from the contract
• Rental promises: Scammers who offer to rent your unit for a fee
• Upgrade traps: Sales pitches that push you into more expensive tiers with unclear benefits

Check Better Business Bureau ratings and never pay large sums without verification.

Popular Timeshare Destinations and Major Brands

Timeshare resorts tend to cluster in vacation-heavy destinations.

Top locations include:

• Orlando, Florida
• Maui and Oahu, Hawaii
• Las Vegas, Nevada
• Riviera Maya and Cancún, Mexico
• Southern California

Notable timeshare brands:

These brands operate through a mix of points systems, fixed weeks, or hybrid structures.

What About Timeshares in Europe?

Timeshares do exist in Europe, though they’re less common than in the U.S. According to the Resort Development Organisation (RDO), there are over 1,300 resorts across the EMEA region. Spain, especially the Canary Islands and Costa del Sol host the highest concentration.

European timeshares are shaped by stricter consumer laws and a legacy of aggressive sales tactics. As noted by the Timeshare Consumer Association, this has led to more flexible, buyer-friendly models in recent years. Regardless, the profile of the modern traveler has been trending toward more flexible options like:

• Fractional Home Ownership (Co-owning a shared vacation home)
• Luxury Vacation Clubs (Points-based access to premium resort networks)
• High Quality Vacation Rentals (Professionally managed homes with five-star amenities)

If exploring a European timeshare, look for RDO-member resorts and review contracts carefully. These organizations help enforce ethical practices and offer consumer support.

Timeshares vs. Vacation Rentals

Short-term rentals like Airbnb offer the charm of unique stays and the freedom to book wherever, whenever. But that freedom can come at a cost: inconsistent quality, last-minute stress, and the occasional unexpected surprise (not always the good kind).

When it comes to vacation rentals, over-touristed areas can be a victim of their own success. Too many rental properties concentrated in popular destinations has disrupted life for the locals, causing some cities to enact legislation to curb the effects of tourism.

Timeshares, on the other hand, provide resort-style consistency—clean units, familiar amenities, and services like housekeeping or concierge—all baked in. You trade spontaneity for structure, and for some travelers, that trade brings peace of mind.

If you crave the ease of knowing exactly what you’re getting each time you travel, timeshares offer reliability. If you thrive on variety and don’t mind a little unpredictability, vacation rentals might suit you better.

Alternatives to Timeshares

If you’re hesitant about long-term contracts, these models might offer better value:

• Fractional ownership: Fewer owners share a real vacation home, with deeded ownership and equity potential
• Vacation clubs: Points-based systems offering flexibility across many locations
• Second-home co-ops: Informal agreements among friends or family
• Travel reward programs: Use hotel points or credit card rewards instead of committing to ownership

These options tend to offer more flexibility, resale potential, and actual property value.

Timeshare vs Fractional Ownership: Side-by-Side Comparison

Feature	Timeshare	Fractional Ownership
Ownership	Usage rights only	Deeded share in a property
Flexibility	Limited to program	Typically owner-directed
Control	Brand-managed	Collective owner control
Costs	Upfront + annual fees	Shared purchase + upkeep
Resale Value	Often minimal	Market-based real estate
Equity	None	Yes, often property-based

Timeshares focus on selling you time, while a fractional ownership home emphasize shared ownership rights, equity and long-term involvement.

When comparing them financially timeshares may have a lower initial expense, but annual maintenance and resort fees can make them more expensive over the long run.

Regardless, the decision on what’s best for you relies on factors beyond financing.

How to Buy a Timeshare Wisely

If you’re seriously considering a timeshare, slow down the process. Here’s how to approach it thoughtfully:

• Research before attending presentations. Know the resort brand, location options, and typical costs.
• Avoid impulse buys. High-pressure sales tactics are common—don’t sign anything without reviewing it later.
• Compare resale options. Many timeshares can be bought secondhand for far less than retail. Check into platorms like Redweek and Timeshare Users Group.
• Ask for the full contract. Look for fee escalation clauses, cancellation terms, and exit policies.
• Consult a real estate attorney if anything feels unclear—especially for international or long-term agreements.

How to Exit a Timeshare (If You Need To)

Getting out of a timeshare isn’t always easy, but there are options:

• Contact the developer to ask if a deed-back or surrender program exists.
• Explore the resale market—though resale values are often low, especially for non-premium properties.
• Avoid “exit companies” that demand large upfront fees and promise guaranteed relief.
• Consider donation or transfer to friends or family, but only if the ongoing fees make sense for them.

Making the Right Choice for Your Vacation Lifestyle

Choosing the right vacation ownership means aligning your travel habits, budget, and personal preferences with the model that suits you best.

Whether it’s the simplicity and consistency of timeshares or the shared equity and flexibility of a fractional ownership home, understanding your options upfront helps ensure a satisfying experience for years to come.

Exploring both the financial details and the lifestyle benefits can provide the clarity needed to find the perfect fit for your ideal getaway.

Get expert help choosing the right vacation ownership