Protect Your Resort Owners by gdf57j


									Protect Your Resort Owners

                                by Linda George

  As a third party collection agency       up front fees - to one, two, or even        companies are very profitable, and no
exclusively serving the resort             three resale companies. The most            doubt they even sell some timeshare
associations, we are providing             common thread in their comments has         units but their income is generated from
information in this article based          been - they could never reach the sales     up front fees not sales.
on our experiences over the past           representative again and their calls were
17 years, our personal contact with        never returned.                              It’s not complicated! If the resale
resort owners who have been directly                                                   company collects a fee of $499, that is
affected, our own internet research,         Obviously their vacation property         equivalent to a 10% sales commission
and our knowledge and understanding        never sold either and they remained         on a $5,000 property. They have
of the timeshare industry. We have a       obligated for annual association dues       nothing more to gain whether the
sincere respect and concern for the        on top of those up front fees. It does      property sells or not, they have already
timeshare owners and we encourage          not matter what these companies call        been paid!! (Up front fees are typically
the developers, associations and           them - appraisal, advertising, marketing,   higher based on the listed sales price)
management companies to “Protect           listing fees or the cost for web pages      Even if they listed a $15,000 property
Your Resort Owners” from unscrupulous      - they are up front fees - plain and        for sale at $35,000 and only charged
resale companies.                          simple. Some go so far as to advertise      a $499 fee they have nothing more to
                                           they do not charge an up front fee like     gain, they have already been paid and
 Timeshare has recovered from its          other resale companies, yet they turn       they are well aware the property will
scandalous image of the early days,        around and collect the fee up front         not sell at that price.
therefore industry leaders should          under the guise of payment for some
diligently guard against companies or      type of service.                             It must be noted here-these companies
services that reflect such a negative                                                  also have a program to sell timeshare
impact on vacation ownership. With           A large number of these resort owners     units on a commission only basis after
proper research, education and action,     were enticed into paying the upfront        the sale. None of the resort owners we
the industry can deny relationships with   fees with the prospect of an outrageous     have ever talked to have mentioned that
resale companies and defend against        sales price. Many of these resort owners    this program was offered to them.
their practices. Protecting the resort     have been the elderly, confined or
owners from these resale companies         widowed - people who can no longer           Our company has even been solicited
will further enhance the image, value      travel or who won’t travel alone. The       by several resale companies over
and integrity of the vacation resort       largest number of our contacts have         the years requesting that we refer
industry.                                  been owners who are facing financial        delinquent owners to them, whereby we
                                           difficulty, who can not meet their          would receive a referral fee. We made it
 There are many timeshare scams out        annual obligation, who are so desperate     very clear that they lacked the honesty
there, just yahoo or google “timeshare     and hopeful of receiving funds just to      and integrity our company values so
scams” or “timeshare resale scams”         survive they have borrowed the up front     highly and we would never associate
since the resale market is the most        fees, further adding to their financial     with them on any level.
prevalent. Your resort owners are          distress. It is no surprise either that
constantly bombarded with mail and         resort owners are enticed into paying          UNDER NO CIRCUMSTANCE
television ads, do your part to protect    the up front fees when advised NOT to        WOULD WE EVER REFER A RESORT
them from these scams. Provide alerts      pay their annual dues until proceeds         OWNER TO A RESALE COMPANY.
or tips in news letters, give proper       from the sale are received.
responses to telephone inquiries and                                                    To the contrary, any time a resort
avoid association with or referrals to a    These companies advertise on               owner indicates a desire to sell their
resale company.                            television and use mass mail marketing      unit-we immediately advise against
                                           to generate volume, their telephone         paying any up front fees, no matter what
 Considering that we are only in           sales staff is very polished and they       they are called, to a resale company
contact with a very small percent of       drop large “brand” resort names as if to    who takes their money and does not
delinquent resort owners, it is alarming   validate their company. We found one        sell their property-period. We do
to realize the significant impact these    resale company on the internet with         offer suggestions that they run small
resale companies have made overall.        over 10,000 timeshare properties listed     ads in their local newspaper or free
We hear from resort owners almost          for sale on their website - in Florida      neighborhood papers, place cards on
daily who have paid $499 to $599 in        alone!! You do the math! Yes, these         their church or grocery store bulletin
                         Reprint from May/June 2009 RT Management & Operations -

                                                               rld of Differen
                                                            Wo                ce
boards, talk up their timeshare unit at
work or in social gatherings. And we
suggest they set their sales price as low
as possible since a buyer must make a
cash purchase with them versus a full
price purchase at the resort requiring
only a small down payment with
prearranged financing.

  We also explain why neither the Resort
Developer nor the Association can sell
their property for them. And on every
occasion, we explain the mortgage
must be satisfied and the association
dues must be paid current before the
timeshare property can transfer to a new

 Everyone is aware of the need for a
legitimate resale market. While we have
not researched or investigated those
consulting agencies that offer to set up
a resale program at your resort, even
this expense can be avoided with a little
                                                                                                             i ce
cooperation and logical thinking.

 See my simple, low cost suggestions

                                                                          Association S
and outlines to “Develop a Method
for Your Owner Re-Sales” in the next
issue of Management & Operations

 Linda George is President of
Crawford Associates, Inc, now in its
sixteenth year of providing collection
                                                     COLLECTIONS, BILLING & RECEIVABLES
services exclusively to the resort
industry. She can be contacted by                                Our Professional Collectors
calling 800-566-8757 or visiting
                                                                 Can Reduce Delinquencies!
                                                        Our collectors receive specific training on timeshare
                                                        operations. Their contact with delinquent owners is
                                                          courteous and respectful. We keep the owners
                                                               committed to supporting their resort!

                                                     Contact Aaron Diller at 800-566-8757
                                                     or visit our website at
                               Reprint from May/June 2009 RT Management & Operations -

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