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Many people find it challenging to afford a vacation home. But what about buying a “piece” of one? That’s the idea behind timeshares—paying a fraction of the cost for a property and having access to it for a set amount of time each year.
And you're not stuck going to just one place! As the industry has grown, it has expanded to include opportunities to trade your timeshare for time in another property – meaning you can pick a different location for your vacation every year. The business of re-selling timeshares has also boomed.
There are many ethical timeshare companies, and many are even BBB Accredited Businesses. But, of course, every industry also has its share of bad actors. BBB aims to educate consumers and guide the industry toward best practices.
What to look for before purchasing a timeshare
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Do your research: Before committing to a timeshare, thoroughly investigate the company and property. Look for reviews, check BBB ratings, and see if there have been any complaints or legal issues.
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Consider the secondary market: Many timeshares are available for resale, often at a fraction of the original cost. This can be a more economical way to purchase a timeshare.
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Avoid high-pressure sales tactics: Sales presentations can be intense. Don’t succumb to pressure to sign immediately. Take your time to consider the offer, read the fine print, and ensure it fits your needs.
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Know your cancellation rights: If you change your mind, act quickly. Most timeshare contracts have a rescission period, typically a few days, during which you can cancel the agreement without penalty.
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Understand all costs: Timeshares come with ongoing fees, such as maintenance charges and special assessments. Make sure you understand all the financial commitments involved.
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Future flexibility: Ensure the timeshare offers flexibility regarding locations and the ability to trade weeks or points within a network of properties.
Industry recommendations: Building trust and ethical practices
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Adopt ethical sales practices: High-pressure and deceptive sales tactics harm the industry’s reputation. Timeshare companies should prioritize ethical standards and ensure their sales teams adhere to them.
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Deliver honest and accurate pitches: Transparency is key. Sales presentations should provide clear, truthful information about the product, costs, and benefits.
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Honor promises promptly: If incentives are offered during the sale, ensure they are delivered quickly and as promised. Fulfilling commitments builds trust with consumers.
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Clarify inheritance rules: Timeshare inheritance can be complex. Companies should provide clear information about what happens to a timeshare upon the owner’s death or if it can be transferred.
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Transparency in communication: Answer consumer questions clearly and honestly. Full disclosure of all terms and conditions helps consumers make informed decisions.
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Neutral dispute resolution: Instead of internal programs, use neutral, third-party mediation to resolve disputes. This approach can foster a more fair and unbiased resolution process.
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Facilitate exiting agreements: Make it easier for owners to exit from timeshare agreements. Offering straightforward exit strategies can improve consumer trust and satisfaction.
The BBB encourages both consumers and the industry to take these tips and recommendations seriously. By fostering transparency, ethical practices, and informed decision-making, the timeshare industry can build a better relationship with consumers and enhance its overall reputation.\
For more information
Want more information about the timeshare industry? See BBB St. Louis's timeshare study.
Learn how to protect yourself from vacation scams.
