Buying points to rent?

[tigger2222]

Do you think anyone buys points simply to rent them, perhaps at a profit? Just Wondering?

TIGGER2222

 

[PamOKW]

If you mean to literally re-sell them, no. If you mean to purchase them and then to rent them out. Possibly, but that is the reason why the papers state that DVC is for personal use and not to be used for commercial purposes. Going into point rental "business" is not permitted.

Another drawback to trying to make money on rentals is that the buy-in cost is getting pretty high at $75 per point. $10 per point continues to be the going rate for rentals, although some have tried to push it higher. The additional problem right now is that Disney is offering some great deals on DVC rooms. People need an incentive to rent points rather than just books through Disney.

 

[tigger2222]

I'm sorry, I did mean to rent them. I'm new to this and as a new DVC member was given this years allotment of pt., as we've already had vacaton I thought I'd try and rent my first 250, since we don't have the time off to use them. On the rent board I noticed that some people advertise often and wondered if this is what they do. Buy points simply to rent them.

Thanks for the info.
TIGGER

 

[PamOKW]

Originally posted by tigger2222
On the rent board I noticed that some people advertise often and wondered if this is what they do. Buy points simply to rent them.

Some of us have wondered the same thing. As I said, commercial use of DVC isn't permitted. There is some question as to what constitutes "commercial use. Renting is permitted for cases like you mention, when a member can't find another use for their points they can rent them. The idea was to rent to friends and family but the Internet has opened up the world to rentals.

Feel free to ask any questions. We all learn from each other!

 

[drusba]

I suspect that there are some that simply bought a lot of points (perhaps the max) solely to rent them. You do get that impression from posts on the rent trade board sometimes. However, I doubt there are many like that -- you may be able to make a profit but you have limits on number of points you can buy (2,000 at one resort, 5,000 overall), you have to pay the high prices of the points and then hope you recapture your investment over the years, you pay dues, you face risks of non-payment or late cancellations losing the points, and because you are actually engaged in the business of renting resort property under the Florida tax laws you are required to pay room rental taxes (and if you don't they may someday come knocking at your door). As a result, few would view it as a way to make a living. I think more common are those who bought more points than they actually use each year and then rent out the excess to cover dues and perhaps make a few bucks. Those are akin to persons with second vacation homes who rent them out part of the year. They would not be considered in the business of renting under the Florida tax laws and from my reading do not face any risk of being deemed to be doing anything improper under the governing DVC documents.

 

[CLC]

We rented points this year due to buying a resale and having a LOT of points to use in a couple of months time. We also took advantage of them and took an extra trip ourselves-it was just too many points to use so quickly.
Even though we have a fair amount of points, somehow we still seem to use them....we would rent if we found ourselves unable to use them for some reason but it definately is not something that I think will happen often!