The ARDA International Foundation has recently released an interesting study focused exclusively on resorts controlled by home owner associations. The three academics behind this first-of-its-kind report were looking to “identify those factors that effectively contribute to success or failure in HOA controlled resorts.”
The survey focused on the following broad topics for this important timeshare subgroup:
- Identification of basic resort characteristics
- Governing Board structures and characteristics
- Financial metrics (including reserve funds)
- Rental, resale and exchange
A couple of the more interesting findings:
- Financial metrics suggest that, on the whole, resort operations are in fairly good shape. Notably, recent maintenance fee increases were not reported as “significant,” a position which seems to be supported on a historical basis. However, readers of this section of the report should probably also check out this article in the January edition of Developments: Benchmarking Study Shows Tough Times Ahead for HOAs.
- Confirming something we touched on previously, owners are generally not getting much assistance with rentals or resales. Only 54% of participating resorts had a rental program for owners, and the average nightly rate was $90, or less than 60% of the rate reported for the timeshare industry as a whole. Worse, only 28% had a resale program to help owners sell their timeshares.