At what level of savings would you rent your points and get a cash room instead?

[Snurk71]

By the way, this only makes sense as a possibility because CRO is offering a 30% discount on the regular cash rate. The math wouldn't work for regular rack rate.

 

[supersnoop]

Yeah but OP is talking about a considerable "savings" by renting points to someone and paying Disney cash for the exact same accommodation. I just don't see it. What am I missing??

It's an entirely theoretical question. Honestly, it'd be easier to ask, "how much profit makes the hassle of renting worthwhile?" That's the basis of the question. OP just convoluted it by turning it into some sort of comparison.

 

[Snurk71]

It's an entirely theoretical question. Honestly, it'd be easier to ask, "how much profit makes the hassle of renting worthwhile?" That's the basis of the question. OP just convoluted it by turning it into some sort of comparison.

It's not theoretical or convoluted - it's actually the exact scenario I'm facing right now. And the numbers are pretty close to the deal I'm looking at (not exact in order to not break any rental ad posting rules). At least that doesn't jive with my definition of "theoretical" - this is very practical/real-world deal.

As I said, I've rented many times so I understand the concept profiting on renting points and using the money for something else (mainly cruises).

 

[supersnoop]

As I said, I've rented many times so I understand the concept profiting on renting points and using the money for something else (mainly cruises).

How is this any different? The question, at it's very basis, is "how much profit makes it worthwhile?" It doesn't matter what you use the money for. That's just extraneous information that complicates the question.

 

[bumbershoot]

I don't think I would ever even look at the possibility. So for me it's moot b/c I would never know if I could book directly and rent points out.

I might do it directly for cruises (rent my points out and use that money for a cruise) but I would never even check for a normal onsite reservation.

The amount where it's worth it is a totally personal decision for you. Even $350, IMO, wouldn't really be worth it. It would have to be WAY higher, and still, I would never know about it because I would never check for it.

Truly, only you can answer this "worth it" question.

 

[DizBub]

Let me see if I can better explain it.

I have VGF points, which are pretty desirable for renting. I am looking at making a reservation 2 months out, so VGF isn't available - only SSR is. Say the reservation I want is 4 nights/140 points. I can use my 140 VGF points and my net out of pocket (OOP) is $700 ($5/pt MF).

Alternatively, Disney is offering the same exact SSR room category for $400/night (inc taxes). So my OOP for the cash reservation thru CRO is $1,600. But now I look to rent my valuable VGF for 11 months out (different time than the 2 months out for my travel) at $15/pt - so I receive $2,100 income from my renter. I still have to pay the $700 MFs on those 140 points though. So my cashflow in this scenario is $2,100 rental income - $1,600 cash reservation thru CRO - $700 MFs = $200 total OOP.

Renting points from someone else doesn't make sense in this deal because DVC doesn't discount room points like CRO can/does - the room will still need 140 points. So if I rent someone's points from David or whoever at $14/pt, that would cost me $1,960 OOP. That's $360 more OOP than renting the room thru CRO for $1,600.

Math points me towards taking the path that costs me $200 OOP vs. $700 OOP.

Even if I drop my rental price expectation to $14/pt instead of $15, I'm still $360 ahead renting the cash room thru CRO vs using my points.

Ok, I see what you're saying. If you are comfortable with it and willing to do all the work it would entail then I guess it would be worth it.

Now if it was me, if I knew I could get a cash deal like that I would probably take it and use my points at a later date because I am always looking for ways to stretch my points or add another trip.

 

[Snurk71]

How is this any different? The question, at it's very basis, is "how much profit makes it worthwhile?" It doesn't matter what you use the money for. That's just extraneous information that complicates the question.

Webster's defines "theoretical" as "relating to what is possible or imagined rather than to what is known to be true or real" and "relating to the general principles or ideas of a subject rather than the practical uses of those ideas". So I disagreed with your calling my question/post "theoretical". If you didn't like my question, you could have just not replied - that would have been easier.

I don't think I would ever even look at the possibility. So for me it's moot b/c I would never know if I could book directly and rent points out.

I might do it directly for cruises (rent my points out and use that money for a cruise) but I would never even check for a normal onsite reservation.

The amount where it's worth it is a totally personal decision for you. Even $350, IMO, wouldn't really be worth it. It would have to be WAY higher, and still, I would never know about it because I would never check for it.

Truly, only you can answer this "worth it" question.

I didn't ask if it was worth it to me (it is - it's effectively almost 1 night free) - I asked at what $ it would be worth it to other experienced renters. I think you could have stopped your answer after your 2nd sentence - that answered my question.

 

[schoen]

I always prefer a CRO reservation to a DVC one, because I enjoy daily housekeeping. It is especially nice in a 1-bedroom! That would be value-added in my book. Although, technically tipping housekeeping would be an added cost.

 

[Dean]

Don't you have to declare the income from the rental, and pay taxes on it?

Yes, after direct expenses (main & adv fees) One can't depreciated it or deduct acquisition costs. The 14 day home/condo exclusion would not apply.

 

[supersnoop]

Webster's defines "theoretical" as "relating to what is possible or imagined rather than to what is known to be true or real" and "relating to the general principles or ideas of a subject rather than the practical uses of those ideas". So I disagreed with your calling my question/post "theoretical". If you didn't like my question, you could have just not replied - that would have been easier.

"Theoretical" seemed to be more kind that "pointless." I attempted to translate the question into one that 1) made sense and 2) could actually be answered. I didn't realize we were writing a wedding speech.

 

[Snurk71]

"Theoretical" seemed to be more kind that "pointless." I attempted to translate the question into one that 1) made sense and 2) could actually be answered. I didn't realize we were writing a wedding speech.

Several people seemed to understand the question, and provided an answer/opinion - which is exactly what I was looking for. So it definitely had a point. Also, the poster who was confused on how this could be a good deal - I further explained with an example and they then understood.

Again, if you found my question pointless - you could have easily just continued walking by. There are hundreds of threads I skip commenting on every time I come on the Dis.

 

[zavandor]

Interesting topic.
I have a booking for January for 11 nights at SSR, for a total of 133 points. If I rent those, it would be $1729.
SSR is heavily discounted on the UK website. The same 11 nights would cost me £2,167, around $3,161. BUT the offer includes the Dining plan and a $200 gift card (and it would probably be for a preferred room, rather then a standard). If we were 4 in the room, the value of the Dining plan would have made this offer much better than using my points. Since I'll travel solo, it's not really worth it in my case.

 

[bobbiwoz]

Not at all interested in doing what you are asking about.

 

[alisonslp]

For me, it would not be a specific money amount but a %-age for my effort. And likely in the 50+% savings range. I just don't see the purpose in renting points out just to rent the same/similar room on cash to save a couple hundred? Not worth the effort for me. My whole point of buying into DVC was to reduce stress and effort, not increase it... I understand some people rent points all the time and for them it's not big deal but for me, it would be a stressor.

 

[Jfine]

I'd consider it for any type of savings. We typically do many cash stays in addition to point stays, so if we had some self control and went less often, I wouldn't have a problem with it. Especially if the non DVC rooms were nicer/more recently renovated.