Can someone please explain annual dues to me?

[kellyf2626]

Ok....so....what do they go toward? Why the price they are? Etc.... One of my good friends is thinking about purchasing DVC, but is kinda turned-off by the high annual dues. I really couldn't explain to her what they were for! Can someone give me a good answer to tell her? Thanks!

 

[Mtnman44]

They pay for the operating expenses of the resort and the property taxes.

 

[drusba]

A timeshare is like a condominium. The owners own a share of the building and other structures, receive services relating thereto, and are charged for the maintenance and running of the condominium and for services provided. Basically dues are charged for and cover such things as the following: (a) administrative and labor employees who work for the resort; (b) upkeep, maintenance of the structures and outside areas (including lawn, pools, trees, buildings etc.); (c) some legal services: (d) transportation costs (busses and boats used by the resort) which are provided by Disney in general and the resort is charged an allocable share of total costs; (e) insurance, including property and liability insurance; (f) maid and laundry (somebody has to wash all those towels) service in proportion that DVC members get it. There are others. You also pay amounts for estimated long-term capital improvements and repairs, e.g., each year you are contributing some amount that will eventually accumulate over the years and be used for such things as to replace roofs when they need replacement. You also pay a share of property taxes. You also pay a management fee to Disney (a set percentage, about 12%, of other dues which covers a substantial portion of the costs of Member Services but also provides some profit for management services to Disney). Other than the management fee, a set percentage, and a reservation fee ($1 per member, dues are based upon costs for the services, not cost plus a profit. Dues can increase annually and have done so most years. Biggest drivers for increases often depends on year but usually it is such things as increased employee costs (employee costs are often the biggest percentage of each cost category, e.g., maintennace, resort administration, maid service), increased insurance costs, increased property taxes. Where a DVC is a part of a resort that also has a Disney hotel (AKV, BWV, BCV, VWL), the costs for shared services and maintenance of common elements jointly used is split with the hotel operation.

 

[chalee94]

yeah, probably better to call them "maintenance fees" to remind you what they are.

it's nice to buy a house, but paying off that asset doesn't mean you're done. you still have to pay property taxes and insurance, and pay to repaint from time to time and replace the carpeting or refinish the floors, and pay to buy a lawnmower or hire a yardcare service, and pay to replace the furniture and appliances...

 

[twinklebug]

...the costs for shared services and maintenance of common elements jointly used is split with the hotel operation.

Which is why folk speculate the dues for the DVC @ CR (aka BLT) will most likely have the highest fees (monorail)

My question - what elements are considered common and what are owned by DVC? Using WLV as an example, I realize the walkway to the villas is most likely owned by DVC as is the actual villa building, but what about the quiet villa pool? If it were to need replacing, is the bill shared between the resort & the villas? Do the villas kick in part of the repair bills to the main pool/river & repairs to the boats? Assuming yes to all of these.

 

[RobDoc]

Here is the (per point) history of DVC annual fees at all of the resorts. As already explained, these fees cover all of the operating expenses for the resort owned, including property taxes and DVC operations. Besides the annual fee there are no other costs associated with a reservation using DVC points. Once the initial purchase has been made, the only costs to use DVC points are these annual maintenance fees.

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV

2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

 

[marathonmommy]

Here is the (per point) history of DVC annual fees at all of the resorts. As already explained, these fees cover all of the operating expenses for the resort owned, including property taxes and DVC operations. Besides the annual fee there are no other costs associated with a reservation using DVC points. Once the initial purchase has been made, the only costs to use DVC points are these annual maintenance fees.

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV

2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

BWV is higher than AKL? I guess those animals don't eat as much as I thought!

 

[Claire L]

I must say I think the annual dues are very reasonable, for us we can get 13 nights in a savanna view studio at AKV for just over $1000, a room there would cost well over $6500. Off course there is the initial cost but that has already been paid for.

Claire

 

[Laxmom]

DVC's mf arent' really that bad. Marriott charges almost a grand at most of it's resorts per year. We were told years ago that according to Fla. law, developers could not charge more than actual cost/reserve for mf's. In other words, they can't make money off the mf's; they must be for actual expenses. If your friend doesn't like the idea of mf's, then any timeshare will turn them off as they all have them!

 

[bookswin]

It was once explained to me by a DVC guide that, speaking very roughly, the purchase price is to cover the construction of the resort and the annual fees are to pay ongoing costs such as taxes, staffing, bus service, mousekeeping, repairs, etc.

I doubt it's strictly costed that way, but that's the idea.

 

[Mickey'sApprentice]

BWV is higher than AKL? I guess those animals don't eat as much as I thought!

BWV is actually quite a bit smaller than the completed AKV, so the dues are split by fewer people. Plus, the availability of standard view points meant that Boardwalk sold fewer actual points than they originally intended, and had to make it up somewhere.

As for the difference between BCV and BWV, that is partly due to BCV being a much smaller portion of the YC/BC complex than BWV.

Of course, if the MFs weren't so high, everyone would want to own at BWV. Sometimes you have to pay the price to own the very best.

 

[marathonmommy]

Of course, if the MFs weren't so high, everyone would want to own at BWV. Sometimes you have to pay the price to own the very best.

. . . . and that I do!

 

[tjkraz]

It was once explained to me by a DVC guide that, speaking very roughly, the purchase price is to cover the construction of the resort and the annual fees are to pay ongoing costs such as taxes, staffing, bus service, mousekeeping, repairs, etc.

I doubt it's strictly costed that way, but that's the idea.

That's exactly how it works.

Disney makes most of its money off the initial sales of the property. The dues are the annual operating costs of the resort. Disney does receive a management fee from the dues which is added revenue, but it's a pretty insignificant amount compared to the buy-in revenue. The management fee is also a typical benefit for those in the timeshare industry, so Disney isn't alone in that regard.

Really it's no different than buying a house. You pay the up-front costs which cover the price of the land, construction materials, contractor, etc. Then you still have to pay for utilities, property tax, lawn care, roof replacements, and so on.

 

[crisi]

BWV is higher than AKL? I guess those animals don't eat as much as I thought!

The DVC animals aren't on the Kidani savannah yet. Initial dues are estimated (and probably estimated on the low side to aid sales) and it isn't uncommon for the biggest hits to occur a few years after opening. (BCV didn't follow that pattern)