DVC RESALES
DVC RESALES

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Old 04-13-2012, 02:15 PM   #1
JessLCH
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Question about buying multiple DVC resales and then renting the points out

Is this permitted? Is there a limit to how many points one can buy and a limit to number of home resorts? Looking into purchasing DVC mainly for the purpose of renting out the points, though we would use some as well.
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Old 04-13-2012, 02:36 PM   #2
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There are some rules about this that some here can tell you about, but from what others will tell you it is a lot of work without a lot of return. You have to figure the most you are going to rent points for is $12 then you have maintenance fees out of that so you might make $5-7 a point.

Most jobs pay better than that and you don't have to deal with annoying renters. No offense, I'm sure most are great but if it's anything like retail you wouldn't mind taking of few of them behind the wood shed for a good beat down!

So even if you are looking at it to pay for your up front cost, it would still take you 8-10 years to pay it off if you buy resale, and a lot longer if you buy direct.

I do know that Disney prohibits and will stop large renters, or commercial renters. So they do monitor this.
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Old 04-13-2012, 03:03 PM   #3
chalee94
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Quote:
Is this permitted?
past a certain point, "commercial" renting is prohibited by disney.

IMO, you'd be asking for trouble to buy pts intending to rent them. way too much hassle for too little return.

Quote:
Is there a limit to how many points one can buy and a limit to number of home resorts?
no limit to home resorts that i know of. there is a limit to maximum number of pts but it's pretty high.
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Old 04-13-2012, 03:13 PM   #4
JessLCH
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Also, what is the best place to purchase resale? the Timeshare Store? Where else?
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Disneyland Hotel (8/13)
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Last edited by JessLCH; 04-13-2012 at 03:14 PM. Reason: spelling
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Old 04-13-2012, 03:28 PM   #5
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I would also discourage you from doing this unless you already have an ongoing source of reliable people who would like to rent from you. Renting to strangers can be risky and frustrating.

You will have lots of competition from others who are already well known and have established businesses with websites. As already mentioned, Disney is not very supportive of renting and prohibits "commercial" renting. At this time, making more than 20 reservations per year will trigger some type of "audit" to see if the owner is renting commercially.

Know that the owner is responsible for the actions of his/her guests and renters - there have been reports here of an owner's account being frozen due to an unpaid bill at check out. (Apparently, the charges came through after check out and rather than try to contact the guest, Disney just decided to freeze the owner's account. Fortunately, the "renter" was a relative of the owner and paid the charges when the owner notified him about them. Even more interesting, the owner didn't even know there was a problem until he tried to use his account to make another reservation. DVC did not pro-actively notify about either the problem or the freeze). Similarly, if your guest or renter damages the room, you, the owner would be responsible.

Many owners do rent occasionally, when they cannot use the points themselves. Many are successful. However, because of the large numbers who do this, rental prices rise slowly, if at all. Getting $12-$15 per point is tough when others are offering points for $10 or less. Points were renting for $10 in the late 90's and many transactions are still going through at that price.

Think carefully before you proceed. It's not as easy as one might think.
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Old 04-13-2012, 03:55 PM   #6
JessLCH
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What exactly defines "Commercial renting" by DVC? More than 20 rented reservations per year? What If I were to own, for example, 10 sets of point contracts and rent them all out nearly every year? Trying to find out the exact rules on this. "prohibits commercial renting" is too vague.
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Royal Pacific Resort Universal ( 2/12, 9/14)
Wyndham Bonnet Creek Presidential (11/12)
Disneyland Hotel (8/13)
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Old 04-13-2012, 03:58 PM   #7
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Under the rules you can own no more than 2,000 points in one resort and 5,000 total. Under the same rules you concede when purchasing that you are doing so principally for your vacation use. Under the same rules you are prohibited in engaging in the "commercial" rental of the units which it defines further as a pattern of rental activity which DVD could construe as showing you are a commercial renter. Disney has set up a 20 presumption rule in that if you reach 20 reservations per year you will be presumed to be a commerical renter. That number is for you and the combination of all your contracts, i.e., you don't get 20 per contract, and it is 20 reservations regardless of whether they are all rentals and thus the count includes your own personal reservations.

If you still want to proceed at your own risk then the Timeshare Store which is a sponsor of this site has many good reviews.
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Old 04-13-2012, 04:52 PM   #8
JessLCH
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Quote:
Originally Posted by drusba View Post
Under the rules you can own no more than 2,000 points in one resort and 5,000 total. Under the same rules you concede when purchasing that you are doing so principally for your vacation use. Under the same rules you are prohibited in engaging in the "commercial" rental of the units which it defines further as a pattern of rental activity which DVD could construe as showing you are a commercial renter. Disney has set up a 20 presumption rule in that if you reach 20 reservations per year you will be presumed to be a commerical renter. That number is for you and the combination of all your contracts, i.e., you don't get 20 per contract, and it is 20 reservations regardless of whether they are all rentals and thus the count includes your own personal reservations.

If you still want to proceed at your own risk then the Timeshare Store which is a sponsor of this site has many good reviews.
Thank you, this was the information I was looking for. Appreciate it.
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First visit: The Contemporary 1972
BLT Owner 2013, VWL Owner 2014

Wilderness Lodge Villas (2/07, 2/09, 12/13, 9/14)
Grand Californian Villas (8/10)
Saratoga Springs Resort (11/11)
Disney Dream (2/12)
Royal Pacific Resort Universal ( 2/12, 9/14)
Wyndham Bonnet Creek Presidential (11/12)
Disneyland Hotel (8/13)
Bay Lake Tower (10/13, 11/14)
Animal Kingdom Villas Kidani (1/14)
Aulani (8/14)
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Old 04-13-2012, 06:11 PM   #9
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And if DVC stumbles upon your website or Ebay sales, they can shut you down in a minute and may require you to sell your points.
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Old 04-13-2012, 06:30 PM   #10
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Quote:
Originally Posted by JessLCH View Post
Thank you, this was the information I was looking for. Appreciate it.
It sounds like you're pretty determined to do this. My only recommendation would be that you run the numbers to see if it actually makes sense vs. investing the money in a low risk bond fund or similar investment that averages 4-6% over time. When doing your calculations remember that unlike traditional investment vehicles, with DVC your initial investment (purchase price) depreciates to zero over the life of the contract. There are a lot of variables to consider, feel free to PM me if you want to discuss this more.
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