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Old 06-11-2013, 10:53 PM   #16
wdrl
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Originally Posted by dmunsil View Post
The only real question, though, is why they'd charge so little for points when they can get $11/point easier by using David's? I would assume most of these folks are renting distressed points. Or somehow they don't know about David's.
Maximizing rental income is not always a driving factor for some renters. Perhaps its because they don't 'need' to rent out their points for more money. As long as they cover the cost of their MFs they are happy, and anything they get above that is gravy. Keep in mind for some owners if they don't rent their points out they would probably end up giving the points away to their relatives.

If you find it hard to believe that maximizing profit is NOT a driving factor in the market, then just look at some of the prices some owners are willing to sell their points. Your own post on May 2013 OKW sales showed someone sold their points at $47. Why on earth would they sell at $47 when sales in the $60s and $70s are not that uncommon? Its because there can be many different variables that come into play for individuals and what works for one may make little sense for another.
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Old 06-11-2013, 11:07 PM   #17
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As long as this second group of owners is present in the market place, the rental prices for DVC points will always be depressed.
This is one of the major reasons why the rental market is not like a typical "business" market and the rental rate will not simply track inflation and the rate of MF's increases. Yes there will come a time when MF's bump up to $9-$10 which should bump the rental rate up, but I Just don't see the evidence to show that the rental rates (average) will just increase $1 each 2 years. It will be interesting to watch.
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Old 06-11-2013, 11:11 PM   #18
dmunsil
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I would suggest that using David's is not easier for all owners.
That surprises me. In what way is it easier to handle rentals yourself? He deals with finding availability, filtering out the looky-loos, getting the rental agreement signed, collecting the money, etc.

I understand it can be more lucrative, because you can get $12 or $13 instead of $11. But is there a problem or complicating factor I'm missing?
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Old 06-11-2013, 11:15 PM   #19
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Maximizing rental income is not always a driving factor for some renters.
Right, sure. I get that; that's true in every market in the world. But again, given that my understanding is that it's easier to rent through David's than doing it yourself, why would folks rent direct for anything less than $11.01? Do they just like doing extra work? Are they prejudiced against Canadians?

Or am I wrong about the easier part? Did I forget something that makes David's less attractive for owners?

Last edited by dmunsil; 06-11-2013 at 11:41 PM.
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Old 06-11-2013, 11:47 PM   #20
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Originally Posted by dmunsil

Right, sure. I get that; that's true in every market in the world. But again, given that my understanding is that it's easier to rent through David's than doing it yourself, why would you rent direct for anything less than $11.01? Just like doing extra work? Prejudice against Canadians?

Or am I wrong about the easier part? Did I forget something that makes David's less attractive for owners?
the only potential less attractive aspect i see is that with davids you get half up front and the other when the renter checks in. if you rent on your own, you have more control over that. if you need the entire amount for an upcoming cash trip or something else, davids may not work. you may not get that other half until 11 months out.
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Old 06-12-2013, 01:25 AM   #21
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From my renting experience (my first experience was excellent) I'd personally be more inclined to rent direct from the member for more than what David's offers...

A competitive price per point direct seems more appropriate to me personally than using a third party. Although I do understand the simplicity in going through David's and less risk involved I would assume...

However, as with the rest of the planning of my Disney trips, which I find is half the fun, I enjoyed the interaction with the member I rented from with working out the final details of the reservation. Furthermore, I enjoyed being able to thank the member for the opportunity for the affordable and amazing accommodations...
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Old 06-12-2013, 07:12 AM   #22
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Combined, AKV, BLT, and SSR more than doubled the number of DVC rooms available. Despite this huge jump in inventory, point rentals seem to be as strong as ever. It certainly seems that, compared to 10 years ago, the general public is more aware of renting points. IMHO, the Internet has greatly aided keeping demand strong despite a huge increase in DVC inventory.

The point rental market is capped by WDW resort prices. Unlike ticket and food prices, Deluxe Resorts rack rates haven't increased much lately, which normally should keep point rental prices down. However, "Free Dining" and "Room Only" discounts have been cut back. This year, it looks like "Free Dining" will only be offered for September (although lots are receiving PINs for October to December) while "Room Only" discounts at the Deluxe Resorts have come down from 40% to 30%. CFO Jay Rasulo mentioned that they've been cutting back on discounts as part of a strategy to increase company revenue.

Looking forward, VGF and the rumored Poly DVC book look to be very small, adding very little DVC inventory.

At the WDW theme parks, we all know about the New Fantasyland and Avatarland, while rumors are swirling about a DHS makeover. These improvements mean that WDW should remain a popular vacation destination. And of course there's MyMagic+, which CEO Bob Iger hopes will improve onsite occupancy rates.

If the economy holds steady or improves, demand for DVC point rentals should remain strong for some time.
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Old 06-12-2013, 02:38 PM   #23
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Another angle here (which somebody already hinted at) is that there are times when it's not cost effective to rent. Because of a points imbalance (the point allocations are way too low in the fall when you can barely get a room anywhere, and way too high in the late spring when rooms are sitting vacant for appreciably higher points), it's very hard to get a room by renting points during a time of year when it's cost effective.

For example, if I want to stay at BCV or BWV in October, I need to find an owner 10-11 months out. Easier said than done, and often times renters are not planning that far ahead. Because I can get a 1BR at BCV for 211 points in October, if I can find an owner willing to rent for $12-$13 I am still saving $500-700 off rack rates (with discounts) or member discounted prices, but chances are I'm not finding anything desirable once we get inside 7 months.
Conversely, in late April this year we found availability inside of 2-3 months at both BCV and BWV but the price of the 1BR at $12-$13 for 269 points was going to cost me over $3200. I was able to get the 30% off through Disney which made the cash cost virtually the same as the rental price, but with the housekeeping every day it's a better deal. And truth be told, I'd rather pay $100-$200 more to reserve cash through Disney b/c there are variables with renting, i.e. no control over the reservation, that don't justify the savings.

We are going in October this year, I have 3 rooms rented at BCV with points. I needed to add another room for 3-4 nights, there is literally nothing except for SSR. So we booked with the member discount, and ultimately it is more than I'd pay if I rented points but there's no availability.

As an aside, I monitor the R/T board on another site and I think the existing reservations clearly go for a premium. So as a BCV owner, if I ever wanted to rent out my points I'd probably just book a room during a popular time, like in October, and then rent out the reservation because by the time I find somebody who wants to use the points, there's nothing left to rent.
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Old 06-12-2013, 08:43 PM   #24
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I rented in 1995 or early 1996 for $10.50 a point and never for less than $10 a point. However, there was a glut of rentals following 9/11 so prices did fall for many. There were a LOT of distressed points rentals but even many of the non distressed prices dropped. You might ask Doc as he was the moderator of the Rent/Trade board at the time IIRC. I'm thinking $8-8.50 a point was common for a while.
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