What does timeshare mean

A timeshare is a vacation property arrangement that lets you share the property cost with others in order to guarantee time at the property. Once you boil this soup down to the meat and potatoes, there are really just two things to consider about timeshares: the type of contract and the type of ownership—or who owns the property and how it works for you to visit your timeshare. Do you have the deed or does someone else? Shared deeded contracts divide the ownership of the property between everyone involved in the timeshare.

You know, like a deed that you share. So, since there are 52 weeks in a year, the timeshare company could technically sell that one unit to 52 different owners. The shared leased option also has a set limit of time before the lease expires—so 20 years in this example, or when the owner dies.

Timeshare ownership is another way those in the business explain how you get to use the property on your designated week or weeks. Changing your allocated week could take an act of Congress or at least a hefty upgrade fee. The floating week option allows you to choose your week within certain limits. In each case, the coverage noted criticism of the industry and compared membership campgrounds to timeshares.

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This arrangement is less rigid, and allows a buyer to choose a week or weeks without a set date, but within a certain time period or season. The owner is then entitled to reserve a week each year at any time during that time period; subject to availability. For example, a buyer might purchase a week during "high season," which entitles the buyer to reserve any week during the property's designated busy, popular season each year.

Since the high season might stretch from December through March, this gives the owner a bit of vacation flexibility. A major potential downside of buying a flexible timeshare is that, if you don't act quickly enough, you might find all the weeks that work for you reserved before you can get them. But if you need a bit of flexibility yourself, and can plan ahead, the flexible structure might still be best for you.

What kind of property interest you'll own if you buy a timeshare depends on the type of timeshare purchased.

Timeshares are typically structured either as shared deeded ownership or shared leased ownership. With shared deeded ownership, each timeshare owner is granted a percentage of the real property itself, correlating to the amount of time purchased.

The owner receives a deed for a percentage of the unit, specifying when the owner can use the property. This means that with deeded ownership, many deeds are issued for each property. For example, a condominium unit sold in one-week timeshare increments will have 52 total deeds when fully sold, one issued to each partial owner.

An important aspect of shared deeded ownership is that it normally comes with the right to sell or otherwise transfer your timeshare to another. But this feature also make them pricier than shared leased ownership, as discussed next.

If the timeshare is structured as shared leased ownership, the developer retains deeded title to the property, and each owner holds a leased interest in the property similar to a rental tenant. Each lease agreement entitles the owner to use a particular property each year for a set week, or a "floating" week during a set of dates. Your interest in the property typically expires after a certain term of years, or at the latest, upon your death.

A leased ownership also typically places more restrictions on property transfers than a deeded ownership interest does. This means as an owner, you might be restricted from selling or otherwise transferring your timeshare to another.

That's why a leased ownership interest can often be purchased at lower cost than a similar deeded timeshare. With either a leased or deeded type of timeshare structure, the owner buys the right to use one particular property. This can be limiting to someone who prefers to vacation in a variety of places.

To offer greater flexibility, many resort developments participate in exchange programs. These enable timeshare owners to trade time in their property for time in another participating property.

Timeshares also have washers and dryers in most units, giving you the ultimate convenience during your stay. You might be considering sticking with Airbnbs, as these can afford you some of the same benefits of home. However, timeshare resorts offer more than spacious units. Properties like Orange Lake Resort in Orlando have on-site restaurants, golf courses, lazy rivers, and even waterparks.

Unless your Airbnb is located in an expansive community or offers these amenities, you are essentially just paying for the space. The owner of these units then has the option of renting them out separately or together.

It is nice for privacy reasons if you are traveling with other guests. Having the option to stay at the same resort each vacation is appealing to some people.

It allows them to make the timeshare their home away from home. Timeshares allow you to explore new places year after year and let you revisit your favorites time and time again. However, if you want to explore new locations on each vacation, there are plenty of options.

These allow you to trade your week for another resort for a small fee. Third-party timeshare exchange companies like RCI or Interval International offer timeshare owners the ability to exchange with a massive network of other owners. Most timeshare companies are affiliated with either one or the other, and some are affiliated with both. Make sure to check with your resort beforehand.

As an owner, you can sign up for an RCI or Interval International membership and begin taking advantage of their vacation opportunities. Your ownership will be converted into a new points system with its own seasons and demand. Owners can use their exchange points to book at thousands of hotels and timeshare resorts all over the world.

These vacation exchange programs also let you redeem your points on cruises, excursions, high-adventure trips, airfare, car rentals, event tickets, passes to popular attractions and so much more. While you might only spend less than a few hundred dollars per night for a hotel room, a timeshare can cost several thousand dollars up-front. The average savings you can take advantage of is typically thousands of dollars. Besides the initial cost of a timeshare, you must consider the annual timeshare maintenance fees as well.

Timeshare maintenance fees are required annual payments that are due to the resort or HOA and they go towards resort up-keep and maintenance. What many people do not think of when they buy a timeshare is the timeshare resale market. Timeshare resales are sold by owners that no longer use their points or weeks, and are looking for someone to take it off their hands. You can find timeshare resales available at a fraction of the cost compared to purchasing directly from the developer.

There are a few things to keep in mind before signing on the dotted line, so do your research. You can find these tours ahead of time if you know you are staying a timeshare resort or nearby.