There are many different types of timeshares. Understanding all these types can help you make the right choices when you decide to buy a timeshare:

1) Fixed Week Ownership. This type of ownership is the simplest and most basic. It is in fact what many people think of when they think of “timeshares“. In this arrangement, the timeshare owner specifies a week when he or she would like to use the property. That week – for example, the last week of July – would be reserved for that owner every year. This arrangement is ideal if you enjoy traveling to the same destination for a specific event – such as a family member’s birthday or a specific holiday.

2) Floating ownership. In this type of ownership, the owner specifies a certain number of weeks, but keeps the specific weeks open. For example, an owner may buy two weeks during the summer at a specific resort. The owner must call up ahead and book the two specific weeks, but he or she can choose from any of the summer weeks. The advantage of this is that this form of ownership is very flexible. The main disadvantage is that there may be hefty competition for the most desirable weeks, and the owner might not get their first choice of weeks.

3) Rotating ownership. In this type of ownership, each owner gets a week later than they did last year. For example, if you got the first week of July this year, you would stay at the property during the second week of July next year. This eliminates competition for popular weeks and is fair to every owner. However, this form of ownership is not very flexible. If you cannot get away from work on your specified week or if you don’t want to go on the week offered to you, you may be out of luck unless you can exchange with another owner.

4) Vacation Clubs. Vacation clubs are companies that own timeshares in several resorts or locations. Once you become a club member, you can reserve any of the units the vacation club has access to. The main advantage is that you can vacation in a wide selection of areas. the main disadvantage is that other members may be competing for the same units and times you are eyeing.

5) Points Programs. In this type of ownership, you do not buy weeks, but rather points. These points allow you to make travel plans within the company selling you points. For example, you can use your points to “pay” for a week at the company resort in Mexico. Points programs can be very flexible, since some allow you to put points towards car rentals and even airplane costs. Potentially, your whole vacation can be covered by your points. The main disadvantage is that points programs can be complex to figure out and sometimes it is not clear what is and is not covered by points.

When selecting a type of timeshare contract, consider how much security and how much flexibility you need.