25 questions to ask a fractional destination club

If you’re thinking about joining a destination club, here are the top 25 questions to ask the clubs you’re considering:

1. How long has the club been operational and what assurance do I have that the club has enough assets (eg. property equity, cash) to meet membership deposit refund obligations at any time and can this be proven via financial disclosure?

2. Can I test the reservation process and visit a home within the club’s portfolio before joining?

3. If I decide to join and get my membership confirmed, can I change my mind, and if so, by when?

4. How many members are in the club and what is the average occupancy rate across all properties?

5. What is the current retention level – is this increasing or decreasing over time? Of those members who have left the club, how long on average did they wait to receive their refund and was this within the contractual obligation? Does the club mind providing you with the details of a current and lapsed member for you to contact?

6. What is the current value of the club’s property portfolio and how many properties are in the club’s portfolio now and due to be purchased in the next two years?

7. What is the average appraised value of a property? What is the value of properties that will be purchased in the next two years?

8. What is the proportion of properties that are owned / rented or leased?

9. How many members does the club have at the moment who have paid their full deposit?

10. What is the process if I wish to relinquish my membership at any time in the future?

11. What is the club’s maximum membership capacity and what is the property to member ratio?

12. Can family members use the properties without the primary member being in attendance? Are there any rules / additional costs based around the respective ages and amount of family members who can be added to the membership?

13. What is property availability like this coming month and how does the club ensure there is decent availability to allow members to travel on short notice?

14. How does a member book for popular holiday periods eg. school holidays, and what booking system is in place eg. first come, first served and is there any priority amongst members?

15. What additional services does membership cover (eg. concierge, car rental, airport pick up / drop off) and are there any extra costs?

16. Are there any additional fees or charges applicable in addition to the annual
membership fee (eg. extra night charges)?

17. Does the club have plans to raise prices and policies – if so, when and by what
rate and what factors would influence such price increases in the future?

18. Are photos and floorplans available for all properties and what are the residence rules – eg. are pets and is smoking allowed?

19. How are the properties furnished (what sort of style and decor, fixtures and fittings etc..)?

20. What standard and special amenities does the club provide in each property ( kitchen utensils, dressing gowns, trouser press, mini bar etc..)?

21. What other amenities can I expect at each resort – eg. access to vehicles, golf cart and professional access (where applicable)?

22. What is the average amount of days a member currently uses for the plan I’m considering and can you rollover any unused days to the following year?

23. Does the club partner with travel agencies, jet, yacht services or have access to any other assets?

24. Who owns the property portfolio and what happens if the club fails?

25. What do you believe are the strengths and weaknesses of the club and why should I ultimately join this one in comparison to the choices available?

This information is for the convenience of our readers. The inclusion of a company should not be construed as a recommendation or endorsement by Fractional Life. Please review our full Disclaimer for further information.

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