TS Today - Creating a Vision for the Future of Vacation Ownership Issue #142, Jul/Aug 2015 | Page 29

EETIN
GR
G

Page 29

If your answer is NO, you and your
ERDUGQHHGDVWUDWHJLFSODQWR¿JXUHRXWWKH
future for your association.
• Persuade your fellow board members
WRIXQGDUHVHUYHVWXG\²DPXVWKDYH¿QDQcial plan that will tell you what you’ll need
to save during the next decade to pay for the
inevitable renovations at your resort.
On average, resorts spend 82 percent
of their revenues on day-to-day operations
and set aside 18 percent for reserves. Over
time, those reserves are spent replacing
IXUQLWXUH DQG ¿[WXUHV  SHUFHQW RI WKH
reserve fund), building improvements (20
SHUFHQW DQG URR¿QJ SDLQWLQJ DQG SDYHment upgrades (16 percent).
:KHQHYDOXDWLQJ¿UPVIRU\RXUVWXG\
make sure they abide by the most recent
industry guidelines—the new Generally
Accepted Reserve Study Standards of the
International Capital Budgeting Institute
(ICBI)—and provide a dynamic, softwarebased report that gives you a 30-year snapVKRWRI\RXUUHVRUW¶VFDVKÀRZ
• Get special insurance to protect your
GLUHFWRUVDQGRI¿FHUVIURPSHUVRQDOOLDELOLW\
if they happen to support a policy or spending decision that runs afoul of the owners.
'LUHFWRUVDQGRI¿FHUVKDYHD¿GXFLDU\GXW\
to make the right decisions, or they may be
deemed liable for their actions.
• Check your resort’s sunset clause to
determine whether—and if so, when—your
association is scheduled to go out of busiQHVV$VSDUWRIWKDWLQYHVWLJDWLRQ¿QGRXW
what percentage of owners must vote to
extend or terminate the timeshare plan. The
answers will focus your planning efforts.
• Buy the strongest Wi-Fi Internet connections available so you can offer future
guests one of the basic necessities of modern life, as essential as food and water.

l/A

In today’s travel business, free and
easily accessible Wi-Fi is a must-have. For
younger travelers who take Wi-Fi for granted, its absence is a deal-breaker.

Other Hot-Button Issues
TBMA members reviewed many other
hot-button issues at the conference, such as
reworking a resort to make it compatible
with the Americans with Disabilities Act
(an expensive but mandatory undertaking),
reviewing owner-focused legislation in a
dozen states, and hearing the latest horror
stories on resale scams and transfer frauds
targeted at older owners.
Some of the most compelling revela-

tions came from board members and resort
managers themselves as they shared their
RZQVLWHVSHFL¿FLVVXHV)RUH[DPSOH
• Alex Krakovsky is board president at
The Waves in Ocean City, MD, a resort with
28 condos, 17 timeshares, and a 34-percent
payment rate. The board recently voted to
terminate the resort and sell off the units.
“There’s no turning back. We’re trying to
wind it down,” Krakovsky said.
• Jane Weber, secretary of the 60unit Bay Club in Ocean City and a selfproclaimed board member in exile, outOLQHG KHU VWRU\ DERXW D SUR[\ ¿JKW ZLWK

You are our business.

We excel at timeshare management, sales and rental. But long
term relationships with our owners, based on communication
and trust, are the foundation of our success.
If accountability, quality and cost containment are important
to you – call us. With over 20 years experience, chances are
we can help.
20 Executive Park Road
Hilton Head Island,
South Carolina 29928
888-433-4762 x-11113
jnahman@hiltonhead