By John DLuzansky, Board President, Quality Hill Resort, Pinetop, AZ
Our participation in the Timeshare Board Members Association has provided our board with a significant amount of information that’s proven vital for our planning. In this article, I share details about how we adopted programs to prevent our resort from becoming non-viable.
Recognizing the Need for Change: The Downward Spiral
Quality Hill Resort, like many others, found itself in a challenging situation. The income from the timeshare units was on a downward spiral due to an aging owner base. The property’s high elevation is at 7,200 feet, and many owners simply couldn’t visit anymore. However, the majority of owners were determined not to let the property become unviable.
Temporary Solutions: Rental Programs and Targeted Leasing
To buy time and generate income, the resort initiated rental programs. By renting units to firefighters and helicopter crews during the fire season, we managed to create a substantial revenue stream. The key here was seizing opportunities in the midst of challenges. We also tapped into the demand for temporary lodging from medical professionals, which included a significant expansion of a local medical facility during COVID.
The Turning Point: Permanent One-Owner Units
Our board recognized that more significant changes were needed to secure a sustainable future. We decided to transition two units into wholly-owned, permanent one-owner units. This process, though rewarding, was not without challenges. It required a year of hard work and extensive legal involvement. The board had to clean up deeds and change CC&Rs.
Legal Guidance: The Importance of the Right Attorney
Choosing the right attorney played a pivotal role in Quality Hill Resort’s transformation. We retained an attorney with 38 years of experience in HOAs and nonprofit organizations. The attorney’s expertise in navigating complex legal matters was invaluable in guiding the resort through this challenging process.
A Successful Transition: Financial and Quality of Life Improvements
We successfully sold 2 of our 18 units for $300,000, each ─ fully funding our reserves and securing an extra $100,000 for property improvements. This transition not only improved the resort’s financial stability but also enhanced the quality of life for its remaining owners.
Lessons in Surveying Owners
Surveys played a significant role in our transformation. We utilized Survey Monkey to connect with owners, receive feedback, and gain insights into owner preferences. A well-phrased survey question, like whether owners would prefer increased maintenance fees or unit sales, yielded valuable feedback and was instrumental in identifying potential buyers among the existing owners.
Future Considerations: Expanding the Program
Quality Hill Resort is now considering transitioning two more units into permanent one-owner units. The choice between long-term year-round leasing and unit sales will depend on tax considerations and the financial impact on maintenance fees.
Takeaways for other resorts: The story of Quality Hill Resort is a remarkable example of how a timeshare property can adapt and thrive even in challenging circumstances. It illustrates the importance of recognizing the need for change, utilizing temporary solutions, selecting the right legal counsel, and engaging with owners through surveys. With a willingness to evolve, every timeshare property can secure a vibrant future. Whether you’re a board president, a board member, or a resort owner, the lessons learned at Quality Hill Resort offer valuable insights for planning a prosperous future.
About Quality Hill Resort
Quality Hill Resort is an 18-unit collection of side-by-side two-story condominiums. Each unit is uniquely furnished. All units offer a private attached garage, fully outfitted kitchen, flat screen TVs, recliners, wood burning fireplace, and high-speed Wi-Fi. The cathedral ceiling of the living room gives a spacious feeling to the units. The condominiums are nestled among tall pine trees in a lush green campus with running streams and ponds. A great place to unwind.
Contact information: Quality Hill Resort Villas, 3753 Crown Dancer Drive, Pinetop, AZ 85935, www.qualityhillresort.com, email: info@qualityhillresort.com, Call: Wendy Shellabarger 928-369-0178
