Renting points to friends

[elaine amj]

I know they are not distressed points but friends don't let friends pay retail.

Love that. And so true.

OP: I often sit and run calculations if I want to do something like that. Then I make an offer I feel is reasonable to both them and myself. If I cannot find a way to make it a "Deal" for my friend without stretching myself too far - than I keep my mouth shut and don't make the offer.

It is completely understandable that you do not want to lose out financially to provide rooms for your wife's friends when you feel they are capable of paying their own way (and likely they want to pay their own way). That said, you certainly don't want to make a profit off your wife's friends (or give them the impression that you are).

If you feel you simply cannot let the points go for any less, then I recommend you keep your points. Just say you both sat down after the initial excitement and unfortunately realised you had other plans for your points and it would really put you out to use it for this trip.

Then suggest either a hotel room or renting points from David's. If you would have asked the same price or more, then you would be doing your friends a favour by going this route.

 

[jkkldisney]

I think it depends on the situation with renting. I think there are few people that would expect not to contribute to paying for a room. Our points were spendy to buy in the first place and we do have to pay annual dues, that will continue to go up monthly. I am renting points to family (cousins) at $10 per point this year to stay at GCV. I consider the price David's pays to really be the wholesale price of the points. Even at the $10 per point, it is far cheaper to get a room on my points than to book one in the hotel. I realize there are cheaper options for them (off property hotels) and I make sure they know it before they commit.

How to come up with a cost when sharing a room can be a bit trickier and it depends on who is going and how the trip is being planned. When my Mom goes with us, I never charge her anything for coming but she contributes in her own way. When we go with another family (friend of family) and end up getting a 2 bedroom, it depends on what we would have done if they didn't go. If we were going to just stay in a studio, I will charge the the $10 per point for the price of a studio. If we would have stayed in a 1 bedroom anyway, I would charge the $10 per point for the price in between a 1 bedroom and 2 bedroom.

We did a big family trip a few years ago where we got 2 treehouses. I booked one and one of my brothers booked one with their points. We split the amount of points between each family (a non DVC owner family stayed in each) and charged $9 per point for the half. This was a big family trip with my parents, siblings and all the kids going.

You can do all sorts of calculations as to the price per point and it varies by the resort based on when you bought, how many years are left etc, if you paid cash vs financing. I think it is good to do that so you have an idea how much the cost of your points are, but realistically I think you could easily say what Davids would give you to rent our your points is wholesale without having to go into a long explanation of how you calculated a price and you could easily justify $11 per point.

 

[rentayenta]

We're going with friends, not treating them, in December. $10 a point is still a massive steal for them compared to what they'd spend per night at the GCH in a hotel room. It'll basically cover our dues. We'll have to borrow (a lot) in order for them to stay with us so this seems like a fair deal.

 

[Sammie]

Since your wife is going with them, I would say charge them what she thinks is fair.

 

[a742246]

I would go with $8.00 a point, so 2br is x points. I would divide the point total in half then multiple that point total by $8.00.

 

[Msmithmd]

$11 per point is neutral for you, since that's what you would easily get for renting the points via a broker.

You can charge more or less than $11. Just figure out how many points "their part" of the total reservation costs, and multiply this point number by your deviation from $11/pt to see the true math.

Concept is, if their part of the reservation is an even 100 points, and you rent them at $8, you're functionally gifting them a $300 contribution for their lodging. If you're good with this, then so be it.

It's just helpful to take the true assessment of what your points are worth, then decide if you want to give a gift (or get a profit) beyond that worth.

Either is fine, just decide objectively rather than by what I or any other member would do for our own family or friend.

 

[AnnaS]

If that is the case, there is no way you should go higher than $11 a point - and probably less. Those resorts are generally available on short notice, and a lot of people will look for distressed points, then book those resorts last minute. Especially if they aren't going at a busy time of year for DVC members. With friends you don't want them sitting by the pool to discover that their friends rented them points for 14 bucks and the person in the lawn chair next to them got them from a perfect stranger for $7 - that's a good way to end friendships. They won't understand that your purchased direct BLT points cost you more money than the strangers "bought in 2010 resale in a down market" SSR points.

Unless you don't really like these people, then if they'll pay $14, take it and run.

If I was inviting friends to stay with me I probably wouldn't expect much from them. Certainly not more than the cost of a room they could've booked themselves. I'm the one who owns DVC so the benefit of the kitchen area for a 2bdrm would be my expense. It's not their problem that the 'cost' of a 2 bdrm is so much higher than a studio.

Both of the above.

They are not going on their own w/their own families to charge them any thing close to what the going rate is.

They can also before or after google what the going rate for renting points is. Depending on the relationship - they might not feel as their friendship was even considered. Did your wife invite them? If she did, I would not charge.

If they insist on paying and/or were not invited to share a room, I would still not charge them anywhere near the going rate. Recoup my dues for the difference in size and maybe add a dollar or two. If they are close enough to me that I want to share a room with them - I need to treat them like family.

If I did not want to part with my points, I would not offer. Just my opinion. Good luck!


It is your (wife's really) call.

 

[Sandisw]

I agree with many that said charging them going rate could be a tough one, especially if the charge was not discussed ahead of time. Depending on how the offer was shared, they could be expecting not to pay.

If they would have been able to stay in a studio, then what I might do is charge dues on that part of the stay, given the cost of the dues or around the $8/pt.

The other option would just be to tell them give you what they think is fair and if it is more than you are comfortable with, then you can say "Oh no...just give us this.." and if it is not, then you can just accept it knowing they won't feel like they are overpaying.

Its a tricky thing when dealing with this sort of thing and friends. When we invite people, I cover the cost of the points...in most cases, they have given me a gift card as a thank you...but I only invite when I know I can absorb the points for the 2 bedroom...if I am not able to swing it...like this year because of all the extra times I will be visiting my DD who will be down their for her internship....then I don't ask people to join us but tell them they would be on their own.

Good luck!!

 

[ffindis]

Just wondering....do people think there is a difference in what should be charged for points if DVC owner is also involved in the stay versus renting to friends who are going on their own? And does it matter if the points were asked for versus offered by the owners?

 

[gmi3804]

***Deleted to omit embarrassing, nonsensical rambling. I didn't understand the question.***

 

[Sandisw]

Just wondering....do people think there is a difference in what should be charged for points if DVC owner is also involved in the stay versus renting to friends who are going on their own? And does it matter if the points were asked for versus offered by the owners?

Yes...if someone asked me if I'd make a reservation and I was not going, then I would charge them if I had points to spare...but the cost would be no more than my dues, so $6 per point. Just my opinion, Y MMV

Or, if not, I'd offer to get a transfer and they'd pay the going rate but at least I'd be in control for them.

 

[crisi]

Just wondering....do people think there is a difference in what should be charged for points if DVC owner is also involved in the stay versus renting to friends who are going on their own? And does it matter if the points were asked for versus offered by the owners?

Personally, when we are going with friends on our points, we host - we've never asked for payment on the points (if they ask, they can buy us dinner, or La Nouba tickets, or the car rental or something).

If they aren't going with us, we aren't the hosts.

 

[Sammie]

Just wondering....do people think there is a difference in what should be charged for points if DVC owner is also involved in the stay versus renting to friends who are going on their own? And does it matter if the points were asked for versus offered by the owners?

It does make a difference to me.

 

[sophia315]

I would most likely charge the dues and maybe round up to the nearest dollar to account for initial cost of contract. I would the divide total cost between all 6 (includes wife portion). I can not profit on my friends or family owning points is not a business.

I would also check what deals the race entry would have given towards a room and cost out a value, a moderate and deluxe and what the actual cost of the two bedroom is. To ensure what price you are giving them is fair. Like others have stated they may want their own bed and in a 2 bedroom they are all sharing beds and possibly on a sofa bed. I would also share all these numbers with the friends and then they can decide amongst the group if they would like to rent your points or stay in a traditional hotel room (3 rooms) where they could have own bed. I am the type of person that would share a bed - sleep on the floor just to be in DW but if I were running a marathon I would pay extra for my own bed.

One tip - I did the marathon a few years ago and stayed in a value resort there was a huge line in order to get onto the bus just to get to Epcot starting line. You may want to consider staying at a monorail resort or a resort they could walk or boat to starting line. Just a suggestion that would make the amount you are charging an incentive to stay at that resort.

Keep us posted on what you decide.

 

[AnnaS]

Just wondering....do people think there is a difference in what should be charged for points if DVC owner is also involved in the stay versus renting to friends who are going on their own? And does it matter if the points were asked for versus offered by the owners?

Difference for DVC - No

Difference with friends (or family) - Yes, big time for me. Huge difference - can't emphasize that enough. Just my opinion/feeling.

 

[Nanajo1]

If I was making reservations for a friend and I was also going I would charge the friend just as if it was a cash ressie,minus my share. However,I wouldn't make money on it. I think I would use the current MFN as a base to calculate the cost.
I have taken many folks with me and I haven't charged them. I view DVC as my vacation home and I'm happy to share it,

 

[flechette]

Just wondering....do people think there is a difference in what should be charged for points if DVC owner is also involved in the stay versus renting to friends who are going on their own? And does it matter if the points were asked for versus offered by the owners?

Absolutely. If I'm going - then I'd charge for the difference between a 1 and 2 bedroom @ annual dues rounded up to the next dollar

If I'm not there at all - annual dues rounded up + $2-3 dollars

If they are using my points instead of me, then I'll be spending money instead of using the points - so a little higher price to cover additional expenditures seems fair.

That said - first time staying with me is usually a freebie - or has been so far