Raising Maintenance Fees

[Lclark5678]

Hello! Is there any kind of limit as to how much Disney can raise maintenance fees by? Thanks so much to all of the experts out there who help with the buying process

 

[dvc at last !]

I would like this answer also.

 

[BillPA]

no more than 15% a year, + increases in RE Tax.

 

[CarolMN]

Here's a history of annual fees:

https://www.disboards.com/threads/the-dvc-resource-center-updated-april-2019.3655476/#post-58628435

 

[dvc at last !]

What is RE Tax ?

 

[DaveNan]

What is RE Tax ?

Real Estate tax - Disney can't control it, so they don't make any limits on it. It is just passed along from the county/state.

 

[dvc at last !]

Thanks.

 

[skier_pete]

The dues go up based on operating expenses. This past year, all the dues went up more than normal because Disney agreed to raise wages from $10/hour to $13/hour, which led to hefty hikes. The next two years they'll go to $14 then $15, so not as bad, but still may see a bump from this. Yes, they can raise them 15%, but only if expenses go up that much.

 

[SL6827]

The dues go up based on operating expenses. This past year, all the dues went up more than normal because Disney agreed to raise wages from $10/hour to $13/hour, which led to hefty hikes. The next two years they'll go to $14 then $15, so not as bad, but still may see a bump from this. Yes, they can raise them 15%, but only if expenses go up that much.

So is the minimum wage at Disney World going to $15 an hour by 2021?

 

[skier_pete]

So is the minimum wage at Disney World going to $15 an hour by 2021?

Yes

 

[SL6827]

Yes

Oh, ok, I was thinking that was Disneyland only. That is good for the cast members at least.

 

[skier_pete]

Oh, ok, I was thinking that was Disneyland only. That is good for the cast members at least.

This is why even though the dues spiked this year, i reallly cant complain because i think its great that they've raised the living wage for many cast members and if it means i pay more than so be it.

 

[SL6827]

This is why even though the dues spiked this year, i reallly cant complain because i think its great that they've raised the living wage for many cast members and if it means i pay more than so be it.

True, but it also makes me wonder just how high those Mickey Bars and Cokes will be in a few years. I posted a thread on this question to see what others might think. I know the cast members need more money though.

 

[jerseyduke]

This is why even though the dues spiked this year, i reallly cant complain because i think its great that they've raised the living wage for many cast members and if it means i pay more than so be it.

Absolutely, particularly since my retirement plan is to drive the monorail!
(Don't worry, Ill post on here when that happens so you can all avoid the monorail at that time)

 

[SL6827]

I think the CM goes to $13 an hour in September, then $14 next October, and $15 in October 2021. Thing is though, this is not only great for Disney CM but for other industries, employees in Florida, even if we will pay for it. My sister-in-law who is a medical assistant makes this wage now, and wonders if wages for people who have a lower set skill level (those who do need six-nine months training, schooling, such as herself) but still need a license, such as a MOA, will have their wages raised if Disney is paying entry level workers that much.

 

[kniquy]

Hello! Is there any kind of limit as to how much Disney can raise maintenance fees by?

Unfortunately one constant is that MF will continue to rise. We hope at a rate close to inflation but I believe the average for on property resorts is around 4% per year. I am not sure what would have to happen for them to go up to a 15% increases.

One way to off set some of the MF increases is to buy discount Disney gift cards through various sources - I think Sam's club offers them, target you can get 5% off with the target red card. Every little bit helps.

 

[rg35]

While Disney needs to keep pace with expenses, they are hugely profitable and could certainly absorb more of the costs. Mainly, Disney's #1 goal is to continue to provide "shareholder value" (which is sadly the primary driver of most public companies these days).

But I do agree that CMs deserve to make a living wage, and it is no problem for us to absorb increases in MFs (but I know that is not the case for all owners).

 

[SL6827]

Unfortunately one constant is that MF will continue to rise. We hope at a rate close to inflation but I believe the average for on property resorts is around 4% per year. I am not sure what would have to happen for them to go up to a 15% increases.

One way to off set some of the MF increases is to buy discount Disney gift cards through various sources - I think Sam's club offers them, target you can get 5% off with the target red card. Every little bit helps.

Yep, love the discounts on DGCs. Boy back in the day did I rack up!

 

[SL6827]

While Disney needs to keep pace with expenses, they are hugely profitable and could certainly absorb more of the costs. Mainly, Disney's #1 goal is to continue to provide "shareholder value" (which is sadly the primary driver of most public companies these days).

But I do agree that CMs deserve to make a living wage, and it is no problem for us to absorb increases in MFs (but I know that is not the case for all owners).

I totally agree. They could cut their own money and give to the employees. Absolutely they could.

 

[gscott8075]

The MF are out of control and that's one of the reasons we sold. They are outpacing the inflation rate. Keep in mind - a 3% increase on $3 is 9 cents. On $8, it is 24 cents. So, as it compounds, the $$ increase - but even worse is that percentage increase continues to go up as well.

Hilton Head MF increased from $3.32 to 8.56 between 2001 and 2019 - the years we owned it. For our 180 points, dues increased from $597 to $1540 in 18 years. That's a 158% increase (corrected). Inflation has increased 44% during that time.