Introduction
Say the word ‘timeshare’ and most people think of property time share: holiday house share and fractional ownership or rental of cottages in the Isle of Wight and luxury Villas in Italy. This article taps into another type of timeshare – that of leisure facilities. By that, we mean sharing a swimming pool, fractional rental of a tennis court or sauna, or even a gym or riding arena.
How can leisure facilities be shared? As with most assets, there are two common methods of sharing: fractional rental and fractional ownership.
Fractional rental is the most common arrangement for swimming pools, saunas, Jacuzzis and so on because usually, one party already owns the facility and has only recently decided to try to make more use of it by effectively, renting it out during certain times.
Fractional ownership is less common for leisure facilities as they usually compromise part of the property and of course the owner is less likely to share ownership of part of his house (although it is common for owners to share ownership of an entire property, be it villa, cottage or apartment)
The third method (the least common but still very viable where the parties know each other well) is where a number of parties individuals, couples, families and so on) join together to pay for a leisure facility at one of the parties’ properties. This sounds like fractional ownership, although it is actually fractional rental dressed up as fractional ownership. This is because the parties are in fact buying the right to use the facility during allocated time slots for a number of years in return for a lump sum payment in advance. You can’t of course sell the facility, let’s say, a swimming pool to an extended third party after ten years. In reality, the pool reverts to the property owner who can then sell it with their property, or not, as they wish.
What does the law say? You must comply with any UK and EU laws as well as other requirements for example, of their insurers, the manufacturers of the facility, and any local legislation for buildings that are open to the public.
The Timeshare Act 1992 (amended in 1997 and 2003) regulates the conduct of a professional seller ("offeror") of timeshare in respect of the sale to a private purchaser ("offeree") where the timeshare is ‘accommodation’. This means holiday property, caravans and possibly boats. So if you are arranging a timeshare for other facilities such as a swimming pool, tennis court and so on, the Act does not apply to you.
For more on the Act, see the article linked at the end of this page.
Of course occupier’s liability does apply. That means that the owner of the property is responsible for the users (swimmers, players or so on) whilst they are using their timeshare slot.
In terms of a swimming pool or Jacuzzi the quality of the water is the critical issue for the owner. The owner can make the swimmer responsible for nearly everything else on the basis that it is a private and not a public swimming pool. But if the water is so dirty or so full of chemicals that it makes someone ill or kills them, then this is the owners fault. The owners need to ensure that they are insured adequately for this. For tennis courts, the surface of the court is most important and in a sauna, the temperature and humidity. A Jacuzzi, although similar to a swimming pool, may simply be too difficult to keep safe. Frequent water changes are required to keep the water hygienic. If in doubt, don’t time share a Jacuzzi.
The owner also has to comply with any other requirements of their insurers, the swimming pool equipment manufacturers, and any local legislation for buildings that are open to the public. This is likely to include issues such as, but not limited to: air-conditioning, water treatment, cleaning, safety regulations, escape routes, emergency lighting, and lifebuoys
How is the time shared?
This is entirely up to the parties.
To maximise income, the timeslots should be split into half hour periods, with each half hour slot rented every week for (say) three, six or twelve months at a time. Of course a party could rent one or two or more half hour time slots at any one time.
If the periods are longer than about three hours, then the potential income is unlikely to be as great. However the owner may prefer to select a smaller group of like-minded people to use their pool. The parties might also agree set morning/afternoon/evenings, half days or whole days every week. This is simply a matter for negotiation.
Some time slots may even be more popular than others, for example early mornings (before work), late afternoons (children after school) and weekends (families), so the owner may charge more for these slots.
Insurance
You may need different insurers. Speak to your current insurers as early as possible. If you are building a new facility to rent out, you could consider specific renovations to help cater for having third parties use it.
Entry and exit This is a tricky one and really depends on how well you know the other parties. If you are old friends, perhaps you don’t mind leaving a key with that person. However, this situation will be rare. You will most likely need a separate entrance and separate parking area for people coming to use the facility. That way, whether you are at home or on Mars, it doesn’t matter.
We suggest you provide at one toilet and a shower if the facility is a swimming pool, Jacuzzi or sauna.
Emergencies
You must provide a telephone close by for use in an emergency
What other things might I need to consider Different facilities have different rules and provide different services. What your rules on depends on your personal preferences. For example, you might prefer players to wear traditional whites whilst on your tennis court, and bathing caps in the swimming pool. It is commonplace to ensure swimmers shower before entry into the pool and you might want to ban the use of talc. You may even prefer players to use only a certain kind of ball, so they don’t get confused with yours. You might choose for gym goers to bring a towel to wipe down equipment or you may prefer to install hand towel dispensers. All of this is up to you.
What am I liable for? This depends on what you include in your timeshare agreement. Users must understand that they are using private facilities. There is no lifeguard or umpire. Users will be responsible for themselves. You can best ensure this is reflected through a carefully drawn written agreement between the parties. The terms must also state that the users are responsible for their own safety. You could also consider add:
no-one swims alone
the maximum number of people allowed in the facility at any one time
at least two people must be able-bodied and capable of running to raise help in an emergency
at least two people must be over a certain age
at least one of the people must be an adult
no adult may be responsible for more than two children
Water confidence and capabilities
If by chance you find some error of law or fact in any Net Lawman information page, do please tell us. We should also welcome your suggestions for new subjects for information pages. These notes:
Do not provide a complete or authoritative statement of the law;
Do not constitute legal advice by Net Lawman;
Do not create a contractual relationship;
Do not form part of any other advice, whether paid or free.