The popularity of Los Cabos has been expanding over the last few years. The resort destination is at an inflection point, pivoting to attracting more luxury travelers with even more higher-end resort-style amenities such as championship golf courses.
Is now the time for travelers to own their own slice of Los Cabos real estate? It’s definitely possible, thanks to timeshare fractional ownership. However, what are some of the pros and cons of timeshare fractional ownership as opposed to simply renting a hotel room when you decide to visit?
Before deciding whether or not to purchase a timeshare, Los Cabos visitors should weigh the related costs of fractional ownership with the benefits along with the cost of hotel room reservations.
The Joy of Ownership
So far, in 2023, the timeshare industry has been expanding in popularity in Los Cabos. There are currently more than 8,000 timeshare properties available in the area, and the average occupancy rate is 80 percent. This is five percent more than the average resort occupancy rate in Los Cabos.
Owning a timeshare fractional ownership property in Los Cabos means that visitors actually own the right to use the property for the time period and/or dates specified in the contract.
For this purpose, owning a timeshare in Los Cabos is very similar to owning your own property. You get to stay in the same familiar location in town year-after-year and may even be able to keep some of your own furnishings on the property. In a sense, it feels more like home.
By owning a Los Cabos timeshare, visitors may also be able to lease out their property instead of using it. In exchange, they could receive a different date in exchange or even some of the rental income from the property, depending on the timeshare agreement.
Just like owning a real estate property, owners are susceptible to maintenance fees and assessments. Many visitors that own timeshare properties in Los Cabos forget about the assessments, which often can exceed the cost of the timeshare benefit and the ongoing maintenance fees.
The only way to get out from under all of the fees is to sell the timeshare property to some other visitor. This is often a challenge for many timeshare owners. Although, because Los Cabos is such a popular location, with occupancy of timeshares hovering around 80 percent during peak season, it may be easier than other timeshare properties.
Another benefit is that timeshare owners “lock in” their rental rate and are not subject to skyrocketing resort room rates during the peak travel season.
Checking in at the Hotel
For others, the Los Cabos resort hotel option is a better choice. The key is that it provides added flexibility.
Timeshares provide Los Cabos visitors with fixed dates that visitors can stay on the property. It is possible to swap dates with others depending on their flexibility. However, staying in a resort hotel provides even more flexibility in dates.
At a hotel, visitors only pay for the nights they choose to stay in Los Cabos. Timeshare owners must pay for an allotment of property nights in accordance with their contract, whether they stay in Los Cabos or not.
Choosing the resort option also provides tourists with more flexibility in location. While timeshares advertise that owners can trade their property rights for a different property, it is not that easy. If visitors own a timeshare in Los Cabos, they should expect to spend most of their vacation time in Los Cabos to enjoy the benefit.
Staying at a Los Cabos resort hotel can come with some tourist tax and resort fees. However, they are not the ongoing maintenance and assessment fees that Los Cabos timeshare owners must pay year after year.
Hotel guests are also, unfortunately, subject to rising resort room rates and sold-out conditions during peak travel seasons in Los Cabos.
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