DVC Point Rental Consideration

[jbbrown211]

While we are not strangers to Disney, I am just learning about the possibility of renting DVC points, which we may look into doing for a vacation later this year. I have always been interested in becoming a DVC member, but now would consider buying extra points solely for the purpose of renting out each year. Looking for thoughts from anyone on whether that would be a good idea. My thought was that income from renting would supplement our yearly vacation, etc. Thanks in advance!

JB

 

[Dean]

While we are not strangers to Disney, I am just learning about the possibility of renting DVC points, which we may look into doing for a vacation later this year. I have always been interested in becoming a DVC member, but now would consider buying extra points solely for the purpose of renting out each year. Looking for thoughts from anyone on whether that would be a good idea. My thought was that income from renting would supplement our yearly vacation, etc. Thanks in advance!

JB

It's a poor value to buy points to rent them out. There is simply not enough return to make it worthwhile. Taking your up front costs and yearly fees into account, about the best you could do would be around 8% before taxes return if you assume return of principal in 20-30 years. Most people would likely get a return more in the 4-5% range. It can be a great opportunity for someone who owns but can't use all their points or one who's had a downturn in their fortunes, but to buy in for that purpose at today's prices simply doesn't make economic sense.

 

[jbbrown211]

Thanks, that's the kind of info I was hoping to find out. Without taking the time at this point to research all of the fees associated vs what the return on renting out points would be, your info is very helpful. Much appreciated.

 

[crisi]

In addition to the return, some people find renting to be bothersome - others don't. It does mean a time commitment in terms of managing your rentals - you'll at least need to make a few phone calls - the points won't rent themselves. Since you can probably do as well on your investment by throwing the money into a mutual fund and ignoring it, its best if the effort involved in renting is something you can see as a hobby - not work.

 

[jbbrown211]

True. If it made financial sense, I don't mind putting the time into it. Sounds like it may not be worth it though.

 

[mydogdrew]

Many find the well bought contracts (resale with lots of banked points or new contracts with developer points, etc.) contain more than they can use initially. In these cases it can make sense to rent of the excess to reduce net initial outlay and use the recurring points for personal use. I would never buy more points than I thought I could use personally but the problem is that can be a difficult question to answer for many of us.

 

[mikron]

While we are not strangers to Disney, I am just learning about the possibility of renting DVC points, which we may look into doing for a vacation later this year. I have always been interested in becoming a DVC member, but now would consider buying extra points solely for the purpose of renting out each year. Looking for thoughts from anyone on whether that would be a good idea. My thought was that income from renting would supplement our yearly vacation, etc. Thanks in advance!

JB

depends on the price you paid for your points. People that bought early in to DVC can make a good return. I own 1,410 points at an average of $70.00 per point. If I rent to help with my dues cost and I rent at $11.50 per point I feel the return is good. I don't find renting a problem, I get pyment in full at the time of renting.

 

[TisBit]

While we are not strangers to Disney, I am just learning about the possibility of renting DVC points, which we may look into doing for a vacation later this year. I have always been interested in becoming a DVC member, but now would consider buying extra points solely for the purpose of renting out each year. Looking for thoughts from anyone on whether that would be a good idea. My thought was that income from renting would supplement our yearly vacation, etc. Thanks in advance!

JB

The other things you want to look into and there are numerous discussions and threads is that Disney seems to be looking into limiting renting/discouraging renting for a profit basis. Commercial Renting is actually prohibited and right now DVC has instituted a 20 reservation a year rule. While this will only discourage large scale renters, we don't know what else they may be doing. And please, lets not start another thread on that!

I too wouldn't buy just to rent. I think that there are downfalls to renting and the risk vs reward just isn't that great to make it worth it. I think the $'s per point is way too low and as others have said, it will be little true return in the end....and the time you put into it just seems to be a loss. JMHO

But on the other hand, if I was going to lose my points because I couldn't go (which I doubt will happen, I can always schedule vacations) I could see it as a back up, just in case.....

 

[CarolMN]

Before you decide, take a look at this thread:

renter not responding/no deposit as promised

It's not uncommon to see threads like this. Renting is not a "slam dunk". Be sure you understand that if you rent on a regular basis, you are eventually going to run into "high maintenance renters" and those who do not follow through on their commitments. It's best if you have a consistent strategy and process for dealing with your customers.

That said, there are many many successful transactions out there. Is it worth it? Only you can decide for you.

Good luck!


Good luck!

 

[sajetto]

Renting turned out to be way too much of a hassle for us to be worth it. I read those same sentiments from many other DVC members, but just couldn't believe it until I experienced it for myself. Granted, there are some really great renters out there because I did have a few, but most recently it has been too much hand-holding for my comfort level. You're experience my end up being different, but you just have to weed through a few of the bad renters to get to the good ones.

Good luck!

 

[Hillbilly]

Actually,
Mike (Mikron) gave me the incentive to start renting my points. I rented from Mike and had a good experience. I bought another contract with the intent of renting some of the points myself to help suppliment the costs of the new contract. Once it's paid off I plan on using the points more often but also know that I could rent if needed. I think that there is a risk, but I found that a lot of renters will come back to you knowing that you have made the transation with integrity and build a trust with each other. They know that you'll help them in every way, and you'll know that they will keep their commitment.