Banking & Rental Strategy

[Yinn]

We purchased enough points to go every year, and stay at where we want every year. In doing so, we also pretty much guaranteed we'd have leftover points and we have every intention of renting them out. How does everyone approach it? Is there a strategy that's better to utilize? What are people seeing as average times to rent out their points?

My initial thoughts are two options.

Option 1: Rent it out immediately in the current UY. If it doesn't rent out, there's no risk; just bank it more than 4 months before UY.

Option 2: Bank it, just in case. Then rent it out in the banked year if it's not needed. If it ends up being needed, I still have it available to use. But this runs the risk of not being rented out and expiring.

 

[Helaman]

I prefer Option 2. It is nice to have an account full of points, even if they are not needed. It is like being Dagoberg Duck with points rather than gold. I have never been unsuccessful renting 11M points, so banking does not present a risk.

 

[crisi]

Keep in mind that its unlikely that you'll rent ALL of your points. If you have - say 70 - leftover points, the renter you find (or get matched with) may only need 62 of them. If they are banked, you'll loose 8 points - since they aren't really useful. On the other hand, if you have 12 points left over every year, that isn't enough to rent. So its going to depend on your situation - how many points you have in excess, how spread out you are among multiple resorts, and how much risk of tossing a few points away you are willing to take.

 

[Sandisw]

It may also end up being a combination of each, depending on your own needs. The good thing is you can be flexible in your approach based on your own plans!

 

[jerseyduke]

I myself would be reluctant to bank points more than a few days prior to the banking deadline, or until they were needed in the next UY for a reservation in that next UY.

So, I would not bank them prior to the banking deadline without having a renter in place. I do not see the benefit of it.

If you have an April UY, you have to bank by 11/30. If you have say 50 points left over, I would not bank them until 11/28ish or you have a renter that wants to rent them for after 4/1 of the next year. What if someone comes along and wants to rent those points for a March reservation? You can't do it, or you now have to borrow. Banking and borrowing are fine, but they do increase your risk or wasting points.

 

[JHV]

have rented using outside websites before ie David's and one other.
when doing it directly how do you secure payments? do you use a contract?
do you spit cost for them or charge all upon rental?
thanks for the advice.

 

[Marionnette]

have rented using outside websites before ie David's and one other.
when doing it directly how do you secure payments? do you use a contract?
do you spit cost for them or charge all upon rental?
thanks for the advice.

A contract is required, as per your agreement with DVC.

The term within the contract are up to the owner and what the renter agrees to. I’ve seen owners who charge a refundable fee just to secure a reservation, some who require payment in full when the reservation is made, some who take payments and I just saw a post by an owner who charges a higher per-point price if the renter wishes to stretch out payments over several months.