Is this a horrible idea?

[Luv2Scrap]

I'm sure this is probably a dumb question, but is there a reason why it would be a bad idea to buy twice as many points as we plan to use, and rent half of them out to help cover our yearly MF's?

Sorry, I know there was a thread about this once upon a time, but I can't find it now and I didn't pay much attention to it back then, as it wasn't even a thought to me then.

Thanks!

 

[Sandisw]

Only if you can afford the points and have use for them if you can't rent them..

I think it is a gamble. If you decide to do it, definitely break up the contracts you get from Disney so that if it is not working out, you can sell off those extra points.

 

[bookwormde]

The "actual" full cost for points is between $7 and $12 depending on what you pay for them and if you finance or what your money your are tying up would have earned. For a couple bucks a points, for most it would not be worth the trouble, unless you consider the $ you pay for the extra points to have no value.

bookwormde

 

[BEASLYBOO]

I couldn't be trusted with extra points, I'd use them myself!
I've purchased a few extra points over the years and I've never paid more that $10 per point, it would seem like a big outlay of cash and a lot of head aches with renting etc. for little gain!

 

[Donna M]

Disney policy says you would not be able to do that because you would be clearly renting points for profit. It could catch up to you. Then what?

Also, what if you get stuck with the extra points and can't use them, or get too busy and can't rent them every year?

 

[CarolAnnC]

The recession has affected many who rely on renting out points. They are either taking less $$ or having difficulty renting at all. I would only buy the number of points that I could afford.

 

[5forDiz]

jmho because we've never rented out any of our points, but I'd think you'd need to be renting at $12+ per point to cover MFs and if you're consistently renting out points MS may flag you as a commercial renter which is not allowed. Probably not worth the time and potential headaches that may come along with it.

 

[Tamar]

I guess I'd want to know...if you took the money you are thinking of spending on extra points, and put it in an account, how many years of MF would that cover (without the hassle of renting points)?

 

[gracelrm]

OT - but wondering.....We have an extended family trip planned for this summer where we have 6 villas reserved for the same time. We are providing the accommodations for everyone by using 3 years worth of points and not receiving anything in return (other than the joy of seeing family enjoy WDW). Will we be "flagged" as possibly renting points and be in any sort of trouble?

 

[Deb & Bill]

OT - but wondering.....We have an extended family trip planned for this summer where we have 6 villas reserved for the same time. We are providing the accommodations for everyone by using 3 years worth of points and not receiving anything in return (other than the joy of seeing family enjoy WDW). Will we be "flagged" as possibly renting points and be in any sort of trouble?

I doubt it. You are going with the group, right?? Any family members in the other villas with the same last name?? If the six villas were at different times of the years, without your name on any of them, they might look at it differently. But all six for the same time and you're going with, no problem.

 

[Sandisw]

OT - but wondering.....We have an extended family trip planned for this summer where we have 6 villas reserved for the same time. We are providing the accommodations for everyone by using 3 years worth of points and not receiving anything in return (other than the joy of seeing family enjoy WDW). Will we be "flagged" as possibly renting points and be in any sort of trouble?

No, you will be fine. I think what they look at as reservations (I have heard more than 20) that happen through the year.

Someone who is commercially renting would have things booked regularly, not all at the same time as you.

And, per DVC, we are allowed to rent our points, as long as it is not excessive. And your situation would certain not be excessive!

 

[CarolMN]

OT - but wondering.....We have an extended family trip planned for this summer where we have 6 villas reserved for the same time. We are providing the accommodations for everyone by using 3 years worth of points and not receiving anything in return (other than the joy of seeing family enjoy WDW). Will we be "flagged" as possibly renting points and be in any sort of trouble?

Highly doubtful. If they even bother to notice, they'll see your pattern. Can't even imagine that this would cause you any sort of trouble whatsoever.

DVC has apparently set 20 reservations per year as some type of threshold to look at a member's usage as a possible commercial rental.

 

[CarolMN]

I'm sure this is probably a dumb question, but is there a reason why it would be a bad idea to buy twice as many points as we plan to use, and rent half of them out to help cover our yearly MF's?

I really do not think renting out points is as easy as some may think. It takes time and you really have to know the ins and outs of the DVC rules. IMO, it's tough for a "newbie" to get started. Be prepared to spend a lot of time getting started.

Based on the increasing number of issues we have had lately on the DIS Rent/Trade Board, I think there are more members than ever who are trying to "spec rent" and apparently, they are not having much luck with it.

I would not recommend to anyone that they buy points to rent on a regular basis. I think it's a recipe for hassles and stress. My advice is to buy what you think you will use - even better, buy less than that. You can always supplement with transfers or take advantage of cash discounts.

 

[Dean]

Disney policy says you would not be able to do that because you would be clearly renting points for profit. It could catch up to you. Then what?

Also, what if you get stuck with the extra points and can't use them, or get too busy and can't rent them every year?

This is not necessarily against DVC's rules. The current rules for "commercial renting" is over 20. There is no "profit" test. Many people do this including myself though I didn't buy intending to use it as such, just don't need all the points right now. However, it's a poor financial choice in that it's a high risk venture for a depreciating asset that will return somewhere in the neighborhood of 5-8% depending on specifics.

 

[auntsue]

DH loved BLT so much that the CPA in him actually considered this idea when we were there in Dec. He felt it was such a desirable location that renting would be no problem.

Anyone who knows me knows that I don't think you can ever have too many points (except for now when the MFs are due), but he was looking at this from a business point of view and personal use of those points was not an option. I told him you weren't even allowed to own points strictly to rent and even if you could (we'd have only bought enough points to rent out 1-week a year), there's no guarantee that you positively could rent them every year. I felt like it would be a major hassle. We're not spring chickens and it would have taken years for us to get our money back. After much discussion weighing the pros and cons, I was happy that he decided against it.

 

[Luv2Scrap]

OP here - thanks for the replies. I can see where this would be way more trouble than my already busy and stressful schedule would be able to accomodate - guess it was a horrible idea after all!

 

[Dean]

OP here - thanks for the replies. I can see where this would be way more trouble than my already busy and stressful schedule would be able to accomodate - guess it was a horrible idea after all!

OTOH, it can be a good option for one who knows they'll need more points in the future or some years though there are other options for those situations as well depending on specifics.