Dvc rooms owned by dvd

[DVC SSR Owner]

So I have a question about rooms and dues. Does Disney chip in on the dues money on DVC resorts that they rent out rooms for cash non DVC owners or are members paying for the wear and tear on the rooms, etc. By non-members?

 

[CarolMN]

Depends. My understanding is that the developer pays dues on the units that are not declared into the condominium.

Once a resort is sold out, in lieu of annual dues, Disney guarantees the annual dues estimate. In other words, Disney will make up the difference if therir estimate is not sufficient to cover the operating costs. IIRC, the guarantee does not cover the property taxes component, though.

Someone else will chime in to clarify or correct if necessary.

That said, for the sold out resorts, the bulk of the rooms that go to CRO to be rented to the general public are a result of DVC members using their points for something other than a DVC resort stay or a trade via RCI. DVC members pay the dues on those points.

 

[OKW Lover]

The OP's question is worded such that its a bit confusing to answer clearly. Lets try this revision:

First, the headline "Dvc rooms owned by dvd". BTW, DVD = Disney Vacation Development, the company that constructs and markets DVC resorts. The rooms owned by DVD are not part of the member inventory and the dues for that resort do not include any costs for rooms owned by DVD. Any rental of those units are purely DVD's income and any profit from that accrues to DVD itself, not DVC owners.

Second, and this is a totally different question, "Does Disney chip in on the dues money on DVC resorts that they rent out rooms for cash non DVC owners or are members paying for the wear and tear on the rooms, etc. By non-members?" Disney (not DVD) pays the DVC resort for rooms that are rented out for cash to non-dvc owners. That payment serves to reduce the total cost of the resort that is supported by DVC member dues.

Does that help?

 

[DVC SSR Owner]

Yes. Does renting out the rooms help to decrease our dues then?

 

[RobDoc]

Yes. Does renting out the rooms help to decrease our dues then?

At 60 days, any accommodations unreserved from Member inventory are released to be rented thru DRC. The profit from those rentals is included as a credit towards annual fees at each resort and is included as a line item under "Breakage Income".

Much of the % of each resort held by DVD is used to replace Member inventory taken out-of-service for renovation and maintenance so not all of that is even available for cash rentals.

The portion of Member inventory used for non-DVC reservations (Disney Collection, Concierge Collection, Adventurer Collection) is used for cash reservations thru DRC and members do not get that income since it is used to "pay" for the non-DVC options used by members.

 

[DVC SSR Owner]

Thanks!