How much do you spend on Marriott Maintenance Fees?

[StevenTing]

I know that many of us are savvy in the ways of Marriott and have many weeks/points in the system. I've added up all of my maintenance fees and I'm paying about $11,000 per year. I wanted to get a feel of how invested people are with Marriott.

The poll should be anonymous.

 

[Steve Fatula]

This will be interesting to see if enough votes come in.

 

[frank808]

I will say too much. But we are enjoying every week that we own!

 

[TravelTime]

I don't even know! I will need to add up my MVC MFs and do the survey. You should do another survey for how much we spend in MFs on all the timeshares we own! Then I would be in the 5 figures.

Also, do you want us to just include Marriott or also include Vistana and Hyatt in this survey since they are merging.

 

[MOXJO7282]

2018 will exceed $40k.

 

[IngridN]

I'm somewhere between $7-8K, 5 Marriott timeshares. We'll be divesting of some as now that DH is retired, we'll be traveling more to urban locations w/o timeshares.

 

[brianfox]

5 weeks Hawaii Marriott is about $10.6K, which nets about 32K Chase Ultimate Rewards points (which I value between $600 and $1000)

 

[SeaDoc]

I know that many of us are savvy in the ways of Marriott and have many weeks/points in the system. I've added up all of my maintenance fees and I'm paying about $11,000 per year. I wanted to get a feel of how invested people are with Marriott.

The poll should be anonymous.

A more illuminating question is how much rental value do you extract from your ownership? In other words, if one pays 8k yearly for maintenance fees, but receives 40k of rental value, that's a 5 to 1 return on one's ownership. Suddenly, MF becomes less relevant and ownership becomes more valuable... I do this analysis every year and I typically exceed 6:1 year after year, especially with the advent of the destination points program.

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[Steve Fatula]

A more illuminating question is how much rental value do you extract from your ownership? In other words, if one pays 8k yearly for maintenance fees, but receives 40k of rental value, that's a 5 to 1 return on one's ownership. Suddenly, MF becomes less relevant and ownership becomes more valuable... I do this analysis every year and I typically exceed 6:1 year after year, especially with the advent of the destination points program.

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What’s your most profitable rental?

 

[vacationtime1]

A more illuminating question is how much rental value do you extract from your ownership? In other words, if one pays 8k yearly for maintenance fees, but receives 40k of rental value, that's a 5 to 1 return on one's ownership. Suddenly, MF becomes less relevant and ownership becomes more valuable... I do this analysis every year and I typically exceed 6:1 year after year, especially with the advent of the destination points program.

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How do you work the acquisition cost into this calculation? Renting for 4x MF's or even 6x MF's means little until one knows how much money one paid upfront to buy the unit in order to earn that "profit".

 

[StevenTing]

I don't even know! I will need to add up my MVC MFs and do the survey. You should do another survey for how much we spend in MFs on all the timeshares we own! Then I would be in the 5 figures.

Also, do you want us to just include Marriott or also include Vistana and Hyatt in this survey since they are merging.

That's a good question. I would say for right now just Marriott as the merger hasn't closed. Once it officially closes, you could include them. The poll allows you to change your vote in the future.

2018 will exceed $40k.

Wow. But for some reason, this is not so uprising considering your portfolio of properties.

A more illuminating question is how much rental value do you extract from your ownership? In other words, if one pays 8k yearly for maintenance fees, but receives 40k of rental value, that's a 5 to 1 return on one's ownership. Suddenly, MF becomes less relevant and ownership becomes more valuable... I do this analysis every year and I typically exceed 6:1 year after year, especially with the advent of the destination points program.

This would be an interesting poll. Maybe I'll create another one. It'd probably have to utilize ratios like you've mentioned. I would be interested in learning more about your rentals, especially when you're talking 5:1 or 6:1 ratios. I'd also be interested in understanding the composition of your timeshare portfolio. My first impression is that with Marriott properties, you'd fall within the 2:1 or 2.5:1 ratio. Guess it's time for another thread.

 

[MOXJO7282]

That's a good question. I would say for right now just Marriott as the merger hasn't closed. Once it officially closes, you could include them. The poll allows you to change your vote in the future.




Wow. But for some reason, this is not so uprising considering your portfolio of properties.



This would be an interesting poll. Maybe I'll create another one. It'd probably have to utilize ratios like you've mentioned. I would be interested in learning more about your rentals, especially when you're talking 5:1 or 6:1 ratios. I'd also be interested in understanding the composition of your timeshare portfolio. My first impression is that with Marriott properties, you'd fall within the 2:1 or 2.5:1 ratio. Guess it's time for another thread.

Yes I agree with the 2:1 or 2.5:1 ratio but 5:1 that doesn't seem realistic unless you're talking very low cost units that somehow rent for max on very special occasions. I won't personally share specifics but will generalizations. I'll share that looking at my numbers my high for 2018 was 2.69:1 for an MOW OF summer week and a low of 1.07:1 for one of my HP weeks. My 11 Maui weeks average over 2:1. The best part is most Marriott and definitely the ones I own still cover MFs, some much more than others. Also the nice volume of MAR points just from paying your MFs is a huge perk. I get close to 500k point every 2 years. It's like a serious cash rebate for paying my bills.

 

[TravelTime]

I think we are mixing several questions here now. One is how much we pay in MFs for Marriott (which is a very limited question since many Tuggers own many brands). The second question would really only be for people who regularly rent out their TSs. So you might need a third question: What percentage of your timeshares do you use vs rent for income purposes and, of that, what is your return?

 

[TXTortoise]

This Marriott rental discussion is great! But wondering if it should be split off to a new thread for better focus.

I only rented one unit last year, but hope to successfully rent four, including lock off of one to cover MF, in 2019. I don’t do it as business, but can’t use them all and the net ‘profit’ pays for airfare and a couple of weeks of car rental.

All of mine are high purchase price units, but I target 2x return against MFs and expect to get that, after commissions in my case.

When including capital costs it’s about a 10% gross return. That number would double if I had more than one Maui winter week floating unit purchased at $15-20k, vs fixed weeks.

Obviously 2019 MF growth is the wild card as rental growth tends to lag against rent ask. With the advent of more Marriott focused Facebook pages and more owners realizing they can rent vs maybe selling, I also see downward pressure on rents as most owners just want to cover their MF, often leaving a good chunk of market value on the table.

To do this justice, the discussion really needs to recognize two groups, high demand resorts in high demand seasons, e,g., Maui winter/summer, HHI summer, President’s Week, Christmas/NY, vs lower cost units that may generate high percentage returns, but fewer dollars, within a smaller calendar window?

 

[Fasttr]

What's interesting so far is that approx. 50% of the respondents pay $4K or less annually. But the 5 who pay $20K or more pay at least equal in total dollars as a group to what the 34 folks who pay $4K or less pay in total dollars as a group. Its sort of like our US tax system. ;-) Sadly, I am not a 1 percenter in either.

 

[VacationForever]

What's interesting so far is that approx. 50% of the respondents pay $4K or less annually. But the 5 who pay $20K or more pay at least equal in total dollars as a group to what the 34 folks who pay $4K or less pay in total dollars as a group. Its sort of like our US tax system. ;-) Sadly, I am not a 1 percenter in either.

We are kind of failures. When we retired a couple of years ago, we decided to reduce MF obligations and to shed most of what we owned. We requested Marriott resales to sell our DSV I weeks. We got rid of Worldmark points entirely and most of our Vistana weeks and while waiting for DSV I to be listed, the weeks got enrolled and then we bought more. A month after our DSV weeks were enrolled and new MVC purchase, MVC resales sent us listing agreement to sell our DSV weeks. Talk about timing. So our MF went up instead of down.

 

[pedro47]

I feel the final MF range will be between $1800 - $2100 p./yr for most owners.

 

[bazzap]

I think we are mixing several questions here now. One is how much we pay in MFs for Marriott (which is a very limited question since many Tuggers own many brands). The second question would really only be for people who regularly rent out their TSs. So you might need a third question: What percentage of your timeshares do you use vs rent for income purposes and, of that, what is your return?

I agree, many of us will be coming from different positions and have different plans and expectations for our investments.
We own 10 MVC weeks (12 usable with lock offs), 9 of these are enrolled in DC, we pay some $15,000 MFs plus or minus dependent on exchange rate fluctuations, as the pay in $, € and Thai Baht.
However, apart from a little academic interest in potential rental returns, we have almost zero interest in actually renting in the forseeable future as we bought and plan to use our weeks (and any elected points) for our own use stays.

 

[AlmostRetired]

I am thinking to complete the picture two more questions come to mind that would be on interest on what the distribution with am eye ball comparison to MF.

One is how many week equivalent vacations do you get. I say week equivalent because it normalizes owners that us DP points for less than week stays, lock off usage and DP point usage discounts based on levels. I own 2 weeks and a EOY lock-off that I split. So I get 3 weeks vacation for my MF.

The other question is how much did you pay for your total ownership. My total resale cost was 18.3 K

 

[VacationForever]

I think it will get into a huge survey if we want all scenarios. We turn weeks to MRPs some, stay some, trade in II some and now points book some.

 

[TravelTime]

I think it will get into a huge survey if we want all scenarios. We turn weeks to MRPs some, stay some, trade in II some and now points book some.

Yes I agree. That is why I am not sure how helpful the survey is. For people interested in this topic, a discussion seems more helpful.

 

[jont]

What's interesting so far is that approx. 50% of the respondents pay $4K or less annually. But the 5 who pay $20K or more pay at least equal in total dollars as a group to what the 34 folks who pay $4K or less pay in total dollars as a group. Its sort of like our US tax system. ;-) Sadly, I am not a 1 percenter in either.

You'll always be a 1 percenter to me. If fact, you're one in a million.

 

[Fasttr]

You'll always be a 1 percenter to me. If fact, you're one in a million.

You are funny....but not proctologist funny.....

Have you ever met a proctologist? They usually have a very good sense of humor. You meet a proctologist at a party, don't walk away. Plant yourself there because you will hear the funniest stories you've ever heard. See, no one wants to admit to them that they stuck something up there. Never. It's always an accident. Every proctologist story ends in the same way... 'It was a million to one shot, doc, million to one

Giddy Up.

 

[TXTortoise]

You are funny....but not proctologist funny.....

Have you ever met a proctologist? They usually have a very good sense of humor. You meet a proctologist at a party, don't walk away. Plant yourself there because you will hear the funniest stories you've ever heard. See, no one wants to admit to them that they stuck something up there. Never. It's always an accident. Every proctologist story ends in the same way... 'It was a million to one shot, doc, million to one

Mine was a vet before he changed careers...interesting bedside manner. ;-)

 

[StevenTing]

It would be nice to do a multi-question survey. Maybe do something with Survey monkey. But right now I just want to know how much other people pay. How vested are they with Marriott. The other discussions are interesting but I'm about to leave on a little vacay and don't want to think too hard just yet.