Does this make any sense?

[Legacy]

Would it make sense to buy double the points you would need for a studio stay for a week, say 200 pts or so, and rent out the extra points every year to cover the maint fees plus a little extra? My family of 3 can stay very easily in a studio. I would love to have the luxury of a 1br villa from time to time, but we would function quite fine in a studio?

I'm thinking use 80 to 100 for a 6 nighter in a studio, and rent the 100 extra @ 10/per point, giving you 1000 dollars, which would cover the maint fee for the year...this way, a trip to dis would cost me 824ish for park tickets and prolly around 660 for plane tix, making a trip to WDW cost about as much as a trip to the beach...and if I wanted to skip WDW and go to the beach, I could rent all of my points and pay for 2/3 of the beach trip..

Is anything missing in my logic?

 

[Sandisw]

I don't think I would risk this. Having points that you don't intend to use could end up being more of a headache than it's worth, at least IMO

If you can't rent the points, then what? Will you still be fine with paying all those MF's if not all the extra's rent?

If you have use for the points, then maybe it might be something to consider, but to go in knowing you are buying twice as many points is a bad idea.

 

[disneynutz]

There is no guarantee that Disney will continue to allow renting.

Bill

 

[Legacy]

Doesn't Disney not officially support renting anyway?

 

[Brian Noble]

It's a very meager return on investment. You might cover the MFs, but you'd have to account for the additional capital required to purchase 2X points. You'd probably do better placing the money used to purchase the "extra" points in some other investment vehicle.

 

[Deb & Bill]

Plus there is always the possibility that you would have to pay taxes on that income.

 

[5forDiz]

Doesn't Disney not officially support renting anyway?

Members are permitted to rent their points as long as DVC doesn't feel that it's being done commercially. And when you rent your points you are actually renting out the reservation that is made with your points so you will have to be the person who contacts MS and inquires about availability & reserves the dates the renting party is interested in etc. and any other notations to that reservation will have to be handled by you such as room requests, Magical Express, add dining plan option. And you can be held responsible for any damages that the renting party may cause at the villa.

 

[Dean]

Would it make sense to buy double the points you would need for a studio stay for a week, say 200 pts or so, and rent out the extra points every year to cover the maint fees plus a little extra? My family of 3 can stay very easily in a studio. I would love to have the luxury of a 1br villa from time to time, but we would function quite fine in a studio?

I'm thinking use 80 to 100 for a 6 nighter in a studio, and rent the 100 extra @ 10/per point, giving you 1000 dollars, which would cover the maint fee for the year...this way, a trip to dis would cost me 824ish for park tickets and prolly around 660 for plane tix, making a trip to WDW cost about as much as a trip to the beach...and if I wanted to skip WDW and go to the beach, I could rent all of my points and pay for 2/3 of the beach trip..

Is anything missing in my logic?

While Disney could make it more difficult to rent, they can't prevent it if done within reason. Buying extra to rent in general is a bad idea but it can be appropriate for some situations. If you were looking at 400-500 points I'd definite discourage you. However, if you can afford the buy in without financing, you're plan may be a good one. I say that not because I think buying to rent is a good investment, I don't, but because I think you'll need more points at some point in the fairly near future and having the extra will ultimately be good for you. Also, you can likely get 200 points much more cheaply on a per point basis than say 100-120 or so. So I see you possibly buying, renting a few points then realizing you really need more than you thought and no more renting out.

 

[dmoore22]

Would it make sense to buy double the points you would need for a studio stay for a week, say 200 pts or so, and rent out the extra points every year to cover the maint fees plus a little extra? . . .
Is anything missing in my logic?

This is truly faulty logic. No one has more points than they need! In addition to planning for your next DVC vacation you'll be debating whether to get an add-on and how much of an add-on. First you'll stay a week. Then you'll look at your points and suggest to your spouse, "Hey, let's stay two weeks." The your spouse will suggest, "Why don't we make reservations for Christmas ... the Wine and Food Festival, ... the Flower Festival, ... 4th of July ..." Then you'll plan a week at the parks followed by a Disney Cruise. Then . . .

 

[mikron]

I think most of the replys don't rent points. We did what you are asking in 2004 and it works out very well. Our return on rented points are good, covers dues and a little more. We bought most of our points between Disney direct and some resales.

 

[Dean]

I think most of the replys don't rent points. We did what you are asking in 2004 and it works out very well. Our return on rented points are good, covers dues and a little more. We bought most of our points between Disney direct and some resales.

I think most of us feel it's a poor investment for the purpose of renting for just the reason you said "covers dues and a little more". One should be able to get around 5-8% renting DVC after maint fees assuming there are no issues but then there are taxes and other risks involved. Some have done a little better in the past using ebay and the like but more risk there as well. I too have points I won't use consistently and rent them out but would never buy in for that purpose other than as a temporary plan such as I know I'll need more in a few years.

 

[mikron]

What is wrong getting all your dues covered and make 5% to 8% return.

 

[Jason@dvcstore]

Would it make sense to buy double the points you would need for a studio stay for a week, say 200 pts or so, and rent out the extra points every year to cover the maint fees plus a little extra? My family of 3 can stay very easily in a studio. I would love to have the luxury of a 1br villa from time to time, but we would function quite fine in a studio?

I'm thinking use 80 to 100 for a 6 nighter in a studio, and rent the 100 extra @ 10/per point, giving you 1000 dollars, which would cover the maint fee for the year...this way, a trip to dis would cost me 824ish for park tickets and prolly around 660 for plane tix, making a trip to WDW cost about as much as a trip to the beach...and if I wanted to skip WDW and go to the beach, I could rent all of my points and pay for 2/3 of the beach trip..

Is anything missing in my logic?

My vote is "YES--it would be a good idea." Having only to rent 80 to 100 points should be very easy and shouldn't take much time at all. I think your plan is great.

Jason

 

[Tamar]

I wouldn't buy a single contract for more points than I thought I could use, but in your scenario maybe 2 100 pt contracts would allow you to give this a try with some options if you find that renting isn't worth the hassle.

 

[Dean]

What is wrong getting all your dues covered and make 5% to 8% return.

IMO, far too much aggravation and risk for the relatively low return, and that return is prior to taxes which cuts it further. There's nothing wrong with it, just simply too much aggravation and risk to justify buying for that purpose. As I noted, there may be other situations that add to the value that would swing the pendulum such as you may need more points in a few years or you get enough better deal on a larger points package compared to a smaller one. One can increase the return a little bit (maybe roughly 10-12%) buying in now with depressed prices and a combo of other measures, by buying several thousand points, reserving prime times speculatively and advertising aggressively including ebay. However, that's not what most people are looking at when they ask this question. Normally they're looking at buying 300 and using 150 or similar.

Take it for what it's worth from someone who owns a number of timeshares, routinely rents them out on years not using them, has owned as many as 845 DVC points (downsized significantly) and rented a portion to all of them out at times and is very knowledgeable about renting timeshares in general. It's not worth the risk and aggravation just for the return. YMMV.

 

[crisi]

Do some research on what is involved in renting. For some people, they enjoy the work so much that not making much of an "hourly rate" doing it isn't a big deal. They sometimes get "repeat customers" and it becomes easy for them to rent over and over again to people they develop good relationships with. Other people have found it to be a lot more work for very little return than they want. Keep in mind that renting your points is not risk free for you - its possible that someone will not come through on payment and you'll end up unable to re-rent your points to recoup. Its possible - but unlikely - that your renter will trash the room and DVC will stick you with the bill.

 

[Brian Noble]

What is wrong getting all your dues covered and make 5% to 8% return.

If you want to be a landlord, there are many timeshares which return significantly better than that, because they are a lot cheaper to buy. When I rent my Wyndham points---not that often---I typically get a return of approximately 25-35%.

 

[Ericandjenng]

Everyone keeps mentioning how hard it is to rent your points. I found it relatively easy and have also considered purchasing additional points....probably resale but I also want to add-on Hawaii

BUT, before everyone starts with the % of return and whatnot, part of it is because I like to cruise and currently it would take more than double the points I have to crusie. I don't want to take one vacation in 3 years so I can go on one cruise. Plus my kids are young (6 & newborn) and as they get older they may want to do some of the other things and not Disney...I know it's not the best use of points BUT, if I have already paid for it, it's better than not using it and paying for a different vacation.

That being said, I never thought I would rent my points but we travelled early last year on a trip we booked before buying DVC and I had to save my time off at work for the baby's arrival plus use most of my time off this year for that also....My princess made it just in time to be a 2009 tax deduction
So after banking last year's points, I just don't have the time to use all of my points this year and I don't want to take an infant on a cruise.

I don't know about the tax implications yet since I just rented within the past couple of weeks but I guess I get to learn that one next year which will help in our decision.

 

[Sandisw]

Everyone keeps mentioning how hard it is to rent your points. I found it relatively easy and have also considered purchasing additional points....probably resale but I also want to add-on Hawaii

BUT, before everyone starts with the % of return and whatnot, part of it is because I like to cruise and currently it would take more than double the points I have to crusie. I don't want to take one vacation in 3 years so I can go on one cruise. Plus my kids are young (6 & newborn) and as they get older they may want to do some of the other things and not Disney...I know it's not the best use of points BUT, if I have already paid for it, it's better than not using it and paying for a different vacation.

That being said, I never thought I would rent my points but we travelled early last year on a trip we booked before buying DVC and I had to save my time off at work for the baby's arrival plus use most of my time off this year for that also....My princess made it just in time to be a 2009 tax deduction
So after banking last year's points, I just don't have the time to use all of my points this year and I don't want to take an infant on a cruise.

I don't know about the tax implications yet since I just rented within the past couple of weeks but I guess I get to learn that one next year which will help in our decision.

But, I think for someone to rent out a reservation, on a year you simply didn't need points, as you did, is different than purposely buying extra points with no intention of needing them down the line.

When you have to involve yourself in rental of that many points, it can be time consuming and possibly not as profitable as you think.

It is a lot of money to go on a "what if" situation. Now, if someone can use all those points and can afford them if they don't rent, then maybe. But as a rule, I don't see how purposely buying and paying for something you don't need, is a good idea.

 

[crisi]

Everyone keeps mentioning how hard it is to rent your points. I found it relatively easy and have also considered purchasing additional points....probably resale but I also want to add-on Hawaii .

I think a lot of it depends on your temperament, and how fortunate you get in customers. If your points move quickly to someone who pays promptly and has reasonable expectations - I doubt renting is hard at all.

Some people have gotten caught in dozens of requests for people who want to pay $2 less than what they are offering, want rooms that aren't available and argue that they see them on the CRO website, back out before the first payment is made, but after you've made the reservation, because they found points cheaper, need you to call member services four times for changes to dining and magical express, don't send payment promptly, back out right as final payment is due.

I think occasional renting is a great thing to have available. As a business model to pay dues - it only takes one year of ending up "stuck" with your points to make a big dent in your ability to use rentals to pay dues. IMHO, pretty risky - particularly if you need the rental income to pay the dues.