Timeshare Association Reserve Studies

Our timeshare association practice encompasses associations as small as 10 units (510 intervals), to projects of more than 400 units with more than 20,000 interval owners.  Further we have worked with traditional timeshare associations, fractional ownership associations, and vacation clubs.  Our reports are designed to consider the reporting needs of each type of association, and we are unique in our ability to provide data at any level requested by the association.  Our fees are competitive, and we do not charge extra for travel time or expenses.  The fee quote in our proposal is the ONLY fee we charge.

Timeshare associations present a unique set of issues for reserve studies-

Unit interior furniture must generally be replaced on a relatively fixed schedule that normally represents a time span that is actually less than the useful lLR sofa tables lightsife of various components.  The reasons?

  • First is that timeshare resorts must keep their ratings high with the vaious exchange agencies, which have established standards regarding room renovations.  Second is that, to keep their members happy about their vacation experience, rooms must be in good repair.
  • However, not everything within a unit is replaced at the same time, so the reserve study must be able to track interior furnishings at a level of detail that allows for tracking by useful life.  This impacts what we refer to as the "scoping" of the reserve study.  What this means is setting the level of component detail at a level where is is large enough to track large individual interiro component, but small enough so that it can be tracked without a burdensome amount of detail.  As an example we know that if we track every single interior component separately, a two bedroom timeshare unit is likely to have between 140 and 170 componenets - far too much detail to be able to track meaningfully.  We generally recommend tracking 35 to 50 items, and grouping the remaining small items into a single component.  Paretto's law works here too; we generally find that we can track approximately 80% of the total cost with approximately 20% of the items, and the remaining 80% of items represent on approximately 20% of the cost.
  • Our software allows us to track all interior components on a unit by unit basis.  This is critical, as you can't manage the process witrhout this information.  Exterior common area components are tracked in a completely different manner.  other reserve preparers do not have the software capability to track individual uMB king bednit items.  What that means is that resort management can get a reserve study that may work for general budget burposes, but is effectively incapable of being used as a management tool.
  • Timeshare resorts are far more apt to approach the reserve study on a businesslike basis.  In the whole ownership world, the reserve study is more often driven by statutory requirements than any sense of business needs.  Because of the more intensive capital needs for replacement of unit interior furnishings, the timeshare world is more likely to require annual updates to the reserve study.  In many instances, that does not mean that an independent reserve professional must be engaged, it simply means that the "numbers" must be rolled forward one year to reflect reserve assessments received and reserve expenditures made.  Our Facilities 7 software provides you with the internet-based tool you need to perform this yourself.  Using our services and Facilities 7, you can actually get annual updates ata lower cost than paying one of our competitors for paper reports that are out of date as soon as they're printed.