DVC maint fee versus rental value over time

[andycat]

Has anyone tracked the increases of DVC maintenance fees versus the increases in point rental rates over time? My "gut feel" is that rental rates are rising faster than maintenance fees, but I don't have any hard evidence. It wouldn't be too hard to look at the historical maintenance fees, but I'm not certain how one would determine the historic rental values of points.

For various reasons at the moment we have more points than we can use, so the question is do we sell the contract or just rent out the points? We're trying to decide, looking forward, which approach will give the better return.

 

[DebbieB]

Has anyone tracked the increases of DVC maintenance fees versus the increases in point rental rates over time? My "gut feel" is that rental rates are rising faster than maintenance fees, but I don't have any hard evidence. It wouldn't be too hard to look at the historical maintenance fees, but I'm not certain how one would determine the historic rental values of points.

For various reasons at the moment we have more points than we can use, so the question is do we sell the contract or just rent out the points? We're trying to decide, looking forward, which approach will give the better return.

For a long time it hung around $10/point despite rising maintenance fees. It seemed like once the rental agencies got involved, it started pushing up. Renting is about double maintenance, I don't see the benefit of renting unless you need the money from the contract. I want control of my reservation.

 

[robinb]

I think renting may become less popular for a year or two once the 2020 point devaluation goes through for studios and 1BRs. The cost of a rented studio will be closer to a Deluxe villa room and less of a bargain.

If you really don’t have a use for your points I would sell them. If you think you may use them in the future then renting them out is a good ‘holding pattern’ for a few years.

 

[CarolynFH]

I think renting may become less popular for a year or two once the 2020 point devaluation goes through for studios and 1BRs. The cost of a rented studio will be closer to a Deluxe villa room and less of a bargain. <snip>

I think that depends on what happens to cash rates through CRO. Disney could increase them too, enough to keep rentals a bargain. Have to wait and see.