Standard Rate for Renting Points... and commercial/professional renters...

[JWimberley]

This may have been covered ad nauseum before but here I go anyway

I just got my statement telling me what the maint. fees are going to be for this year at Boardwalk. I know that they are going to go up every year but I believe this is the 3rd year in a row that they have gone up by at least 10%.

I typically try to rent out at least enough points to cover the cost of my fees each year. With this increase I'm wondering if other members that rent their points would consider a rate change to reflect our higher costs.

Moving from the standard $10 a point to $11 or $12 per point isn't going to ruin our chances of renting (we are still well below what Disney is getting). Most of my renters are looking for 45-75 points. The new pricing would cost them an extra $100 on average. It isn't going to break them but will definately offset our extra expense for a while longer.

One thing that it might help with is thinning the herd so to speak. In my last round of point offerings I must have gotten 20 PM's the first day of potential buyers. I was only able to help 3 of them before I ran out of points but I now believe that if I had asked $12 per point I would have gotten a third of the responses and still rented all of the points, especially if I wasn't being undercut by other owners.

Ok, I'll relinquish the soapbox... Don't worry, I'm a firefighter so feel free to flame on, I can take it

Tell me what you guys think...

Joshua

---------------------------------

I edited the title to reflect a natural progression in what this topic has become about...

 

[tjkraz]

Tell me what you guys think...

I think your thread relates to rental price fixing and is going to get locked as soon as a moderator sees it.

 

[calypso*a*go-go]

Great in theory...but a little difficult when half the posts on the rent/trade board right now are offering points for $7-$9.

 

[Doctor P]

This may have been covered ad nauseum before but here I go anyway

I just got my statement telling me what the maint. fees are going to be for this year at Boardwalk. I know that they are going to go up every year but I believe this is the 3rd year in a row that they have gone up by at least 10%.

I typically try to rent out at least enough points to cover the cost of my fees each year. With this increase I'm wondering if other members that rent their points would consider a rate change to reflect our higher costs.

Based on the dues history that has been posted, the BWV increases the past three years have been (2005): 3.8%; (2006): 6.3%; (2007): 3.4%. Only one time besides 2006 has the annual dues increase even reached 4%. The total dues increase since 1997 (10 years of dues increases) has been $1.01.

Your reasoning therefore is fatally flawed. Furthermore, the cost per point to buy in has stayed at below $2.25 per point for some time when divided over the length of the contract. There may be ways to justify higher rental rates, but increased cost of ownership really doesn't hold much water as the justification.

 

[Starr W.]

Great in theory...but a little difficult when half the posts on the rent/trade board right now are offering points for $7-$9.

Those numbers always seem to go with points that have to be used within one-three months!

 

[Deb & Bill]

Just looking at the number of posts on the R/T Board, the number of people wanting to rent seems to be increasing.

 

[JandD Mom]

One thing that it might help with is thinning the herd so to speak. In my last round of point offerings I must have gotten 20 PM's the first day of potential buyers. I was only able to help 3 of them before I ran out of points but I now believe that if I had asked $12 per point I would have gotten a third of the responses and still rented all of the points, especially if I wasn't being undercut by other owners.

Ok, I'll relinquish the soapbox... Don't worry, I'm a firefighter so feel free to flame on, I can take it

Tell me what you guys think...

Joshua

I also wanted to post before it gets locked, and say I agree with you 100%.

However, I disagree with your pricing, and think $12 is way too low.

 

[dumbo71]

I think your thread relates to rental price fixing and is going to get locked as soon as a moderator sees it.

I agree and I'm not so sure your 10% yearly increase of BWV dues is accurate either.


Edit: Thank you Doctor P for posting the facts.

 

[DebbieB]

Boardwalk was only only about 3%.

 

[JWimberley]

Based on the dues history that has been posted, the BWV increases the past three years have been (2005): 3.8%; (2006): 6.3%; (2007): 3.4%. Only one time besides 2006 has the annual dues increase even reached 4%. The total dues increase since 1997 (10 years of dues increases) has been $1.01.

Thanks for the clarification. I was going stricktly by memory which admitedly is seriously flawed... Seems I was looking at the monthly drafts of $58 going up to $65 but that is just the first month, then it comes back down to about $61...

If the thread does get locked then I apologize for bringing a forbidden topic, I plead ignorance to the rule.

Thanks for those that have supported me and I look forward to another healthy rental season next year!

 

[kespo]

I agree with you totally. About $4 a point goes towards main. fees. I would love to see a slight increase.

 

[CarolMN]

...(snip).....If the thread does get locked then I apologize for bringing a forbidden topic, I plead ignorance to the rule....

It's not a forbidden topic. Threads are closed for several reasons - the most common reason is mutiple posts that violate Board posting guidelines.

Other than the OT posts predicting thread closure (which I choose to ignore for the moment, LOL), I see no reason to close this particular thread.

Those who might like to review the posting guidelines (I know, wishful thinking on my part, LOL), will find them here:

http://www.wdwinfo.com/guidelines.htm

 

[JWimberley]

Thanks Carol, I appreciate the feedback and I will be sure to check those posting guidelines out just for you

Joshua

 

[UConnJack]

Just looking at the number of posts on the R/T Board, the number of people wanting to rent seems to be increasing.

Exactly, and if rental rates are to go up, this will be why. Classic supply and demand. Unfortunately, supply will probably continue to rise as well as DVC grows. If anything creates a larger demand than supply, it will be DVC's crackdown on "commercial" renting....if successful.

I would love to see rental rates at $11-$12 consistently too (not that I rent very often), but I don't believe in price fixing, even if it were possible to do here. If you want to get $11-$12 per point, you can, you just need to be more patient and wait for the right renter. Many renters are willing to pay that much under the right conditions (e.g., right resort, making daily reservations 11-months out, comfort with a particular owner, owner's experience renting, T&Cs, etc.)

 

[Johnnie Fedora]

With the huge the MF increases (HHI), I won't rent for less than $13-17 especially for S-Th stays.

With so many owners giving away their points to internet strangers, I'm beginning to think I should just sell one of my contracts and buy transfered points for $7-9.

Why buy the cow?

 

[Dean]

I feel price fixing is illegal but understand the idea. OTOH, if one wants to discuss the merits of why the price should be higher OR wants to post that they feel it should be higher, that should be OK. I feel it should routinely be higher and don't intend to rent non distressed points below about $12-13 per point but that's me, others can do what they want.

 

[JWimberley]

I feel price fixing is illegal but understand the idea. OTOH, if one wants to discuss the merits of why the price should be higher OR wants to post that they feel it should be higher, that should be OK. I feel it should routinely be higher and don't intend to rent non distressed points below about $12-13 per point but that's me, others can do what they want.

Now that was mighty diplomatic... I think Dean may be a politician in real life In all seriousness though, I'm not trying to get a price fixing DVC cartel together, I just want people to think about the fact that we are already renting at almost half the price Disney is getting for cash reservations. Lets not devalue our inventory and lets be patient and strong enough to ask for every penny that it is worth!

Joshua

 

[Slakk]

I feel price fixing is illegal but understand the idea. OTOH, if one wants to discuss the merits of why the price should be higher OR wants to post that they feel it should be higher, that should be OK. I feel it should routinely be higher and don't intend to rent non distressed points below about $12-13 per point but that's me, others can do what they want.

I totally agree - $12-13 would be the bottom for me as well although I have exactly 1 point available so I doubt I would be of much help to anyone LOL!

 

[kespo]

Now that was mighty diplomatic... I think Dean may be a politician in real life In all seriousness though, I'm not trying to get a price fixing DVC cartel together, I just want people to think about the fact that we are already renting at almost half the price Disney is getting for cash reservations. Lets not devalue our inventory and lets be patient and strong enough to ask for every penny that it is worth!

Joshua

Well said!!!

 

[dumbo71]

With the huge the MF increases (HHI), I won't rent for less than $13-17 especially for S-Th stays.

With so many owners giving away their points to internet strangers, I'm beginning to think I should just sell one of my contracts and buy transfered points for $7-9.

Why buy the cow?

You should sell and rent. Can you give up the control to do so? If the answer is yes then sell and rent.

The reason I never rented here on the Dis (I lurked for a while) is because of the $10 price. The lowest I ever rented for was in the $14 range.

Life is full of choices. We don't need price fixing here on the Dis to get higher rates. Either stick to your $12 price or pursue other avenues. I'd suggest the later.

I agre $10 is far to low except for distressed points.