We often describe joining a destination club as “parking your money in someone else’s garage.” You’re providing your money to a management team which you assume will acquire homes, run the hospitality side of the business, and then return some or all of those funds when you ask for it back.

We interview destination club executives, when available, using our complete list of 175 key due diligence questions. We’ve selected the Top 20 questions and included them below. In some cases, such as financial disclosure, you’ll need to ask clubs directly. The answers are only available to prospective members under a non-disclosure agreement. It’s important to ask these questions; if you cannot get answers, then we recommend you consider another destination club.

Disclosure and Assurance

• What assurance do I have the club has enough assets (e.g. home equity, bond, or cash) to meet membership deposit refund obligations at any time?
• Can the club demonstrate this to me via financial disclosure or some other means?
• What percentage of your members resigned last year? In the past year, how long, on average, have members waited to receive their refund? Is the timeframe inside or outside of the contractual obligation?
• What is the current average appraised value of a club home? Does this represent the value of homes that will be acquired in the next 12–24 months?

• What system does the club use for holiday and peak period reservations? On average, what chance does a typical member have of booking at least one holiday reservation each year?
• How does the club ensure there is enough availability to allow for members to travel on short notice (e.g., within a 30 day window)?
• Can I “test” the reservation process before I join?
• What occupancy rate does the club manage to on a year-round basis, across all properties?

• Can I visit a home before joining? Can I change my mind after I join? If so, by when?
• Can family members use the homes without the primary member? Which family members and what ages can share the membership?

• What additional services are provided by the club and included in the annual dues (e.g., concierge, maid service)?
• Are there any additional fees or charges above and beyond the annual dues (e.g., an additional nightly fee)? At what rate can the annual dues be increased each year?

The Helium Report 50-page Decision Guide to Destination Clubs includes these Top 20 questions along with our complete list of 175 key due diligence questions to consider. Request a free copy by clicking here.