Best home resort for renting out

trenton43

Earning My Ears
Joined
Jul 26, 2020
We are looking at buying DVC (first time) and intend on some years to rent our points out (when we don't go to Disney). Since we know this is part of the plan, we want to make sure we factor this into our decision. We are trying to decide between SS or AKV. SS is cheaper, but we're willing to pay more for AKV IF that gives us an edge in renting out points at the 11 month mark at a premium. Is there a market for AKV points at 11 months or should this not be a factor in our decision? Is there another resort (at Disney World, in the same price range) we should consider instead? Thanks for helping us think through this decision!
 
  • LAX

    DIS Veteran
    Joined
    Mar 13, 2016
    We are looking at buying DVC (first time) and intend on some years to rent our points out (when we don't go to Disney). Since we know this is part of the plan, we want to make sure we factor this into our decision. We are trying to decide between SS or AKV. SS is cheaper, but we're willing to pay more for AKV IF that gives us an edge in renting out points at the 11 month mark at a premium. Is there a market for AKV points at 11 months or should this not be a factor in our decision? Is there another resort (at Disney World, in the same price range) we should consider instead? Thanks for helping us think through this decision!
    For sure if you are willing to put in the effort for the value rooms, but those are really sought after and difficult to get even at 11 months. I think some brokers have included AKV as a "premium" resort for rental rate purposes, but I am not sure of the demand level outside of the value rooms.

    LAX
     

    RoseGold

    Mouseketeer
    Joined
    Jan 21, 2020
    I rented for years before I bought, and I used a popular search that isn't this site. I excluded the 2042 resorts, and watched the requests for two years, and I'd say Poly. Pre-covid, Poly consistently had 11 month requests at a premium that were not being filled. It's one of the reasons I bought Poly.

    The cash rates on Poly are INSANE and keep increasing. Anyone paying $800 for that just likes setting money on fire.

    Of course, if 2020 has shown us anything, it's that rental income is uncertain.
     

    TCRAIG

    Member Since 2010 SS/OKW/HH/BCV/WLV/BLT/GF
    Joined
    Jun 17, 2011
    I rented for years before I bought, and I used a popular search that isn't this site. I excluded the 2042 resorts, and watched the requests for two years, and I'd say Poly. Pre-covid, Poly consistently had 11 month requests at a premium that were not being filled. It's one of the reasons I bought Poly.

    The cash rates on Poly are INSANE and keep increasing. Anyone paying $800 for that just likes setting money on fire.

    Of course, if 2020 has shown us anything, it's that rental income is uncertain.
    Agree - Poly
     

    StitchesGr8Fan

    DIS Veteran
    Joined
    Jul 17, 2009
    I would strongly recommend reading some of the posts regarding what is happening to owners and renters right now because of COVID if you think you may rent out points in the next couple of years. The rental market is going to change for a while as Disney offers deep discounts to get heads in beds, and while current owners and renters remember how they got burned by this situation.
     

    lovethesun12

    DIS Veteran
    Joined
    Jul 5, 2017
    I rented for years before I bought, and I used a popular search that isn't this site. I excluded the 2042 resorts, and watched the requests for two years, and I'd say Poly. Pre-covid, Poly consistently had 11 month requests at a premium that were not being filled. It's one of the reasons I bought Poly.

    The cash rates on Poly are INSANE and keep increasing. Anyone paying $800 for that just likes setting money on fire.

    Of course, if 2020 has shown us anything, it's that rental income is uncertain.
    Yup. After pricing a 10 night cash stay at poly I figured may as well buy DVC then. lol.

    Also, poly rarely has significant discounts (in my experience) like other resorts.
     

    Brian Noble

    Gratefully in Recovery
    Joined
    Mar 23, 2004
    We are looking at buying DVC (first time) and intend on some years to rent our points out (when we don't go to Disney).
    This isn't the question you asked, but I'll answer it anyway: I'm not sure this is a wise idea.

    Over the past several years, there has been significant growth in the supply of points to the rental market, including some people who assume they will rent out some or most of their points every year for various reasons. The rental market has been robust over the past several years, and it looked like easy money.

    I think at least some of those folks either were not around for or forgot what it looked like during the several years of the Great Recession when points were available for the asking, and the next few years could make that look like the good old days. I really hope I'm wrong about that, but I keep reading articles about air travel/hotel demand not recovering to 2019 levels until 2023. There are reasons to believe that domestic leisure travel will recover before business travel, and that helps WDW. But, a good chunk of WDW's market is international, and that will take longer for a whole bunch of reasons.

    Over the long run, I think the rental market will be strong more years than not, and if you are thinking in terms of decades, this could be a good strategy. But, you'd need to be prepared to weather periods of low demand where you'll either need to use your points yourself or be prepared to take less for them. If you think you will go two out of every three years, you might be better off looking for a point total that more or less meets that need with some modest banking/borrowing, rather than competing in the rental pool.
     

    CastAStone

    Model Citizen. Math and business nerd.
    Joined
    Jun 25, 2019
    This isn't the question you asked, but I'll answer it anyway: I'm not sure this is a wise idea.

    Over the past several years, there has been significant growth in the supply of points to the rental market, including some people who assume they will rent out some or most of their points every year for various reasons. The rental market has been robust over the past several years, and it looked like easy money.

    I think at least some of those folks either were not around for or forgot what it looked like during the several years of the Great Recession when points were available for the asking, and the next few years could make that look like the good old days. I really hope I'm wrong about that, but I keep reading articles about air travel/hotel demand not recovering to 2019 levels until 2023. There are reasons to believe that domestic leisure travel will recover before business travel, and that helps WDW. But, a good chunk of WDW's market is international, and that will take longer for a whole bunch of reasons.

    Over the long run, I think the rental market will be strong more years than not, and if you are thinking in terms of decades, this could be a good strategy. But, you'd need to be prepared to weather periods of low demand where you'll either need to use your points yourself or be prepared to take less for them. If you think you will go two out of every three years, you might be better off looking for a point total that more or less meets that need with some modest banking/borrowing, rather than competing in the rental pool.
    100% this. I'd buy a few fewer points and bank and borrow.

    Every time I read about someone paying for their 1st contract by renting a 2nd I cringe. The math doesn't work to begin with and then the risk is so, so high.
     

    Dark Rider

    Earning My Ears
    Joined
    Jun 10, 2016
    I would strongly recommend reading some of the posts regarding what is happening to owners and renters right now because of COVID if you think you may rent out points in the next couple of years. The rental market is going to change for a while as Disney offers deep discounts to get heads in beds, and while current owners and renters remember how they got burned by this situation.
    I would like to offer a different perspective on this as someone who is buying into DVC for the first time right now.

    My son and I have been going to Disney every year for the past several years. We mostly stayed in value resorts, as I was always able to get good deals. This year, because of COVID, we had to cancel our spring break Disney vacation the day before we were scheduled to fly to Orlando. We then booked a trip for August using the free dining offer. That offer was converted to 35% off when Disney canceled dining plans. Last month we decided to cancel given the escalating situation. I re-booked for next spring break, but Disney wasn't offering any deals whatsoever, and my previous deal would not carry over to 2021. The price of Pop Century has jumped by large amount compared to what I previously could get it at, and I couldn't find anything that was a good value.

    Disney is not trying to get heads in beds. In fact, they are actively trying to prevent people from coming to Disney World so they can limit capacity. There is nothing to indicate that demand will be low next year. Rather, I think demand will be very high, because everyone had to cancel their vacations this year and are eager to go on a Disney vacation. I am worried about Disney raising prices next year to make up for the losses this year. I think they will be squeezing every last cent they can get from every customer. While the situation may be bad for DVC owners now, I think the situation for non-DVC owners will be bad in the next few years.

    My first DVC contract is now at ROFR, because I think the risk of not owning is now higher than the risk of owning. I want to lock in a good value now and remove the risk of Disney raising prices dramatically.
     

    RoseGold

    Mouseketeer
    Joined
    Jan 21, 2020
    I am worried about Disney raising prices next year to make up for the losses this year. I think they will be squeezing every last cent they can get from every customer. While the situation may be bad for DVC owners now, I think the situation for non-DVC owners will be bad in the next few years.
    I agree that Disney hotels are ridiculous with current pricing. $450 for a Nemo suite on a Wednesday in the middle of January!

    The flip side to this is that off-site properties ARE cheaper, and there is currently no reason to stay on property. No extra time in the parks, no fast passes. Obviously, no AP discounts, because there are no APs. Without the fast passes and extra hours (for any on-site, not just DVC) I'm not sure I would have bought at all.
     

    sethschroeder

    DIS Veteran
    Joined
    Feb 24, 2013
    Thats because they are not worried about discounting rooms that far out yet even in normal times they don't discount this year that I am aware of besides possibly bounce backs.

    When things get a little better towards the end of next year, resorts will be open, and they will be discounting to fill every single room. Plus you dont have all the foreign visitors that they need to make up for not renting rooms.

    They already have 25% discounts on rooms at POP.

    Yes FL discount only but thats because of the current situation and wanting to fill rooms with people not needing to travel.
     

    lovethesun12

    DIS Veteran
    Joined
    Jul 5, 2017
    I would like to offer a different perspective on this as someone who is buying into DVC for the first time right now.

    My son and I have been going to Disney every year for the past several years. We mostly stayed in value resorts, as I was always able to get good deals. This year, because of COVID, we had to cancel our spring break Disney vacation the day before we were scheduled to fly to Orlando. We then booked a trip for August using the free dining offer. That offer was converted to 35% off when Disney canceled dining plans. Last month we decided to cancel given the escalating situation. I re-booked for next spring break, but Disney wasn't offering any deals whatsoever, and my previous deal would not carry over to 2021. The price of Pop Century has jumped by large amount compared to what I previously could get it at, and I couldn't find anything that was a good value.

    Disney is not trying to get heads in beds. In fact, they are actively trying to prevent people from coming to Disney World so they can limit capacity. There is nothing to indicate that demand will be low next year. Rather, I think demand will be very high, because everyone had to cancel their vacations this year and are eager to go on a Disney vacation. I am worried about Disney raising prices next year to make up for the losses this year. I think they will be squeezing every last cent they can get from every customer. While the situation may be bad for DVC owners now, I think the situation for non-DVC owners will be bad in the next few years.

    My first DVC contract is now at ROFR, because I think the risk of not owning is now higher than the risk of owning. I want to lock in a good value now and remove the risk of Disney raising prices dramatically.
    I've gone multiple times during Easter and have never gotten a discount this early.

    Once the attendance cap is lifted, there is no possible way WDW won't be offering heavier (than normal) discounts until at least 2023, maybe 2025. I'd consider myself a pretty huge fan, and I'm hopeful about a summer 2021 trip. Realistically though, I think it's 50/50, and I'm starting to come to terms with the fact Easter 2022 is probably the earliest I'll get there.

    As usual, the Grand Californian is probably the exception. You will still need to hand over $♾️ and your first born child to stay there.
     

    Dean

    DIS Veteran<br><a href="http://www.wdwinfo.com/dis
    Joined
    Aug 19, 1999
    We are looking at buying DVC (first time) and intend on some years to rent our points out (when we don't go to Disney). Since we know this is part of the plan, we want to make sure we factor this into our decision. We are trying to decide between SS or AKV. SS is cheaper, but we're willing to pay more for AKV IF that gives us an edge in renting out points at the 11 month mark at a premium. Is there a market for AKV points at 11 months or should this not be a factor in our decision? Is there another resort (at Disney World, in the same price range) we should consider instead? Thanks for helping us think through this decision!
    I wouldn't buy with the intent to rent but I would buy where I was planning minimal banking borrowing and buy enough points to have a cushion for normal use looking at other resorts as well. Specific to AKV, it'd be a mistake to buy counting on value rooms and in general. If one is looking mainly at studios, I'd want a big cushion of points around 20-30% more than the studios cost, possibly even more if hoping to use points at other resorts that are more expensive. These other priorities might push one to do an occasional rental to use up points.

    Of the 2 AKV will likely rent slightly better but SSR will be cheaper, esp long term when you look at dues which will be the largest part anyway over time, esp if one can get value rooms. BLT & BWV standard are good options as well. GF will rent well but more expensive and not worth it JUST to get the rental options. Ultimately I'd make the best decision ignoring rental then if I needed to do a rental to use up points every few years because of the cushion and to avoid constant banking/borrowing, the difference wouldn't be enough to matter. IMO the other factors related to rentals are more important than home resort like minimizing renting banked/borrowed points, having clear and reasonable rental agreements (verbal or written) and renting EARLY in the UY.
     

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