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Owners Group Guards Vacation Lifestyle
by Jennifer Zentis
American Resort Development Association
Whether you're new to the vacation ownership community or an experienced vet, owning a timeshare offers more than great experiences and a family legacy. It's also a chance to be a part of something bigger
That's because for many, owning timeshare—known to different companies as vacation ownership (VO) or interval ownership, too—becomes a way of life. Vacation ownership can take you and your family to the same comfy, familiar spot every year, or it can be a vehicle for traveling the country, or the globe. Plus, owning and using your timeshare puts you in contact with other owners who share your interests. More than one lifetime friendship got its start between timeshare travelers lounging at a pool or hitting the back nine.
"VO" camaraderie reaches far beyond lunch at the resort. At home, owners talk about their experiences with other owners through publications and on-line hotspots, developing a network of know-how and an enthusiasm that's second to none.
For its many benefits, the timeshare vacation family deserves support and protection. Indeed, timeshare owners not only deserve advocacy on the local and national stage—they need it. Potentially expensive and disruptive legislative and regulatory issues crop up almost every day. Individual owners can't be expected to keep up with the pace or the politics burgeoning in every corner of the country.
Enter the ARDA Resort Owners Coalition, an owner-advocacy group powered by hundreds of thousands of timeshare vacationers. Sponsored by the American Resort Development Association, ARDA-ROC represents the interests of timeshare owners wherever issues are found, from municipalities to the federal government's highest offices.
For a closer look at ARDA-ROC's efforts, we visited with its director, Sandra DePoy, who explained the ins and outs of supporting and encouraging a unified owner voice.
First, tell us about ARDA-ROC. What is it?
First and foremost, ARDA-ROC is a tool for political and legislative action on issues that affect timeshare owners. ARDA-ROC works to protect the investment that owners have made in their timeshare purchases. It's sponsored by ARDA, the American Resort Development Association. The people who administer the program, including myself, are all ARDA staff members.
ARDA-ROC was started in 1989. Today, there are over 450,000 owners supporting the coalition through their direct voluntary contributions. That contribution level is currently three dollars, and usually gets paid to the developer as part of the annual maintenance fee. Those single-owner contributions provide a total of over a million dollars annually that is available to use in defending owners' interests.
ROC's participants are obviously active in keeping it well resourced. What does ARDA-ROC do with its funding?
ROC responds to legislative issues where the interests of timeshare owners are being affected. And we do that at all levels: federal, state and local. As we speak, ARDA-ROC is actively engaged more than twenty states—and we're working on issues in the Caribbean.
ARDA-ROC provides two kinds of assistance: direct funding and strategic expertise. The strategic expertise comes primarily from our state legislative affairs office. When a situation arises, funding is requested either by an HOA or an ARDA chapter group, like ARDA-Florida. To receive funding from ARDA-ROC, an issue has to have an impact on the interests of the owners. The most common issues right now are taxation: transient occupancy taxes, association reserves, property assessment. There are even places that want to levy a tax on furnishings. These are all critical, recurring threats to timeshare owners.
What do timeshare and taxation seem to be running in the same legislative and regulatory crowds?
We're really surrounded by tax legislation right now. There are several reasons. First, timesharing has become a very successful industry. It is growing at a very fast rate, much faster than the hotel industry. In fact, right now it's the fastest growing segment of the travel and leisure industry. So when governments are searching for new sources of income, timesharing looks like a pretty good target.
Second, most of the owners of timeshares are usually from out of state—I mean out of the state where the taxes are being levied, or at least from out of town or outside the county. It's a lot easier to tax people who aren't around to object in person.
And finally, the timeshare business is not well understood by many of the legislators responsible for regulating it. Timesharing grew out of the real estate business. I don't think anyone would consider a timeshare a land purchase. Yet, in many states, the body that makes regulations for your timeshare purchase is typically a department of real estate or a land bureau. So there's a lot of education and explanation that is required at all levels of government.
Despite how expensive they can be, new taxes and other legislation may seem a world away from owners' vacations—and might not be compelling. So what do you say to owners who aren't involved in ROC?
I tell them that not participating is really the same as saying "yes" to new taxes on your timeshare, your travel and the rest. Staying quite means giving your consent. ROC speaks up for owners. And remember, the major threats to timeshare owners will not come at the federal level. They will come from the county councils, the city management teams, and from the state legislatures. This part is completely predictable: timeshare owners will be challenged and taxed at all of these levels unless these challenges are met. I think the best tool on the market to meet those challenges is ARDA-ROC. And at three dollars, it's a bargain.
How does getting involved work?
It's so simple. Owners make the decisions, so it can be a little different for each resort. But here's how vacation owners usually start getting involved. The timeshare property's homeowners association agrees to offer participation in ARDA-ROC to each of the owners. The developer includes the three dollar voluntary contribution in the annual maintenance fee. The developer makes sure that the money is clearly identified as an optional, voluntary contribution. The owner pays the invoice, including the contribution, or they can deduct the three dollars and pay the balance of the maintenance fee. The developer calculates the total of contributions and sends a check for that amount to ARDA-ROC.
That's all there is to it. Joining's easy.
And totally voluntary.
Right. Each owner has the option of participating. The contribution is so minimal, very few owners turn down the chance to be part of ARDA-ROC. But one of the strengths of the program is that it is voluntary.
How is the resort developer involved in the process?
The developer will manage the payments, passing owner contributions on usually on a monthly or quarterly basis. They can also keep statistics on participation and report those back to the HOA's. The developer also receives updates from ARDA-ROC on current issues and activities. These can then be included by the developer in their own communications to the owners. Some developers just copy the ARDA-ROC update and send that along with their own materials.
What do you feel is the most important aspect of building and supporting the timeshare owner community?
Whatever the process, we know that communication is critical, especially at times when a region has active issues at stake. But owners also deserve year-round support, and not just on legislative issues. We want to promote a knowledge exchange, not just from ROC to owners, but also between the owners themselves. So ARDA-ROC provides solid support in communication. We offer updates on the Web site, and soon there will be a fully operational online community there, where participants can exchange stories, reviews, hints, tips—whatever.
If you had it your way, would every owner participate in ROC?
Well, let me just say this: just about every state legislature or county council or other government body is working on some type of regulation or legislation that will impact the timeshare owner community. If owners expect to enjoy the benefits of their timeshare purchase in the future, they have to protect it now. They need a voice in the regulatory process. The most effective and proven way to be heard is by having owners join ARDA-ROC.