Give me the DVC Point Renting 411

[rf53]

My family (Florida residents) have been going to Disneyworld for many years. In the past we have been annual pass holders several times, and I can't count the number of times we have visited on weekends, holidays, or for summer vacations. Most of the time we stay at Disney resorts, but we have never bothered to become DVC members. I am told we could have saved big time.

All that is water under the bridge. Nevertheless, I am interested in learning about renting points. Can someone give me the DVC point renting 411?

1. How do you rent points?
2. What is considered a good deal in terms of price per point?
3. Where can you redeem the points, and how?
4. Are there black out periods, or other restrictions to consider?
5. Are there sellers/renters to avoid for some reason? (I hate the "visiting a time share scam!")
6. Is there anything I haven't asked that I need to know?

Thanks in advance for your help!

 

[disneynutz]

An owner makes a reservation in your name and you pay them.

You can deal directly with the owner or through a broker.

You can learn more here on the DIS by logging in and reading the rent/trade forum.

Bill

 

[RobDoc]

My family (Florida residents) have been going to Disneyworld for many years. In the past we have been annual pass holders several times, and I can't count the number of times we have visited on weekends, holidays, or for summer vacations. Most of the time we stay at Disney resorts, but we have never bothered to become DVC members. I am told we could have saved big time.

All that is water under the bridge. Nevertheless, I am interested in learning about renting points. Can someone give me the DVC point renting 411?

1. How do you rent points?

You can't use the points yourself (only the member who owns the points can do that), but you can rent a reservation made by the owner of those points.

2. What is considered a good deal in terms of price per point?

I would suggest knowing what the cost would be from Disney for the same reservation. Typically, reservations are rented based on the number of points required - the cost can run from $8 - $15 depending on the resort and eagerness of the member to rent a reservation made using their points.

3. Where can you redeem the points, and how?

Since points are useless to anyone except the owner, you can only use the reservation made for you by a member. You should get a Disney confirmation number just as you would from Disney.

4. Are there black out periods, or other restrictions to consider?

There are no blackout dates for DVC reservations. Everything is based on avability. The earliest DVC reservations may be made is 11 months before arrival - some villas do go right at 11 months depending on the resort, type of villa, view.

5. Are there sellers/renters to avoid for some reason? (I hate the "visiting a time share scam!")

You will need to do your due diligence but there have been very few problems on our DVC Rent/Trade Board over the past 16+ years.

6. Is there anything I haven't asked that I need to know?

Here is a thread at the top of the Rent/Trade Board that has a lot of good information to digest before sending anyone $$$ for a reservation - IMPORTANT!! - **How to use this Board** - PLEASE READ BEFORE POSTING!! .

Another good option would be to use a rental service - DVCrequest.com is one our DIS advertisers and has a stellar reputation.

Good luck with your rental!

 

[rf53]

Doc,

Thanks for the quick response. While I'm sure that lots of research and reading would answer all of my questions (and I will do that too), the great thing about this board is that there are so many people eager and willing to share their knowledge. It makes things much easier on all of us!

In summary then... is this the scoop?

A DVC member who does not wish to use his/her points "rents" them at a price to be determined by the owner's motivation to make the deal. Generally, this is between $8 to $15 per point depending on the resort, season, etc. Doing some homework regarding rack-rates and available discount rates during the intended time of stay will provide some indication about the type of deal you are getting, but ideally the goal is to rent points at a cost below the best discount deal available.

More questions (pardon my ignorance on the issue and any dumb question that may follow):

1. If the owner is the only one that can redeem the points, how is the reservation made in the name of the person who is checking in?

2. What paperwork is exchanged to transfer the points (if that is the phrase) to the renter?

3. I assume the base point cost excludes taxes and other resort fees?

4. Is there an expiration date for the owner's points, and can that be determined? I assume that points quickly expiring will go cheaper than points that may be used well into the future.

Thanks again!

 

[mcorbo]

1. The owner makes a reservation in their DVC account for the renter in the renters name.

2. The owner will receive a confirmation that they can give to the renter. Owners will quite often have a written contract to exchange with the renter outlining the terms of the agreement (payment dates, cancellation/change policies etc)

3. There are no taxes or resort fees with DVC.

4. Yes, points do expire, but that really should not be a concern of the renter. Most times these rentals are non-changeable and non-refundable.

You want to go the week of 5/10/15, you try to find an owner who has points available for those dates at the resort you want. They will inform you that the reservation will be X number of points at $x per point.

1. If the owner is the only one that can redeem the points, how is the reservation made in the name of the person who is checking in?

2. What paperwork is exchanged to transfer the points (if that is the phrase) to the renter?

3. I assume the base point cost excludes taxes and other resort fees?

4. Is there an expiration date for the owner's points, and can that be determined? I assume that points quickly expiring will go cheaper than points that may be used well into the future.

Thanks again!

 

[chalee94]

2. What paperwork is exchanged to transfer the points (if that is the phrase) to the renter?

4. Is there an expiration date for the owner's points, and can that be determined? I assume that points quickly expiring will go cheaper than points that may be used well into the future.

you really, really do not get the "DVC points" themselves.

a reservation is made in your name by a DVC owner, but you would not own the reservation until you check-in. you would generally pay for the reservation based on the number of points used, but all of the use of the points can only be handled by the DVC owner. DVC's member services will not speak to you - and if the DVC owner called a week before your reservation to cancel it, that is what would happen. (but again, as doc says, that is an extremely rare issue - it did make me nervous when i was on the renter side of the transaction, though. OTOH, you can see the reservation on the disney website when the owner gives you the reservation number - you just don't control it.)

3. I assume the base point cost excludes taxes and other resort fees?

the DVC owner pays the underlying property taxes as part of their ownership costs. there are currently no occupancy taxes due for a DVC rental or any fees like that. once you pay for the rental (assuming you don't charge anything to the room), you would have zero due at checkout.

the DVC resort in hawaii does add some additional fees but that's not an issue at any of the other DVC resorts.

here are the point charts for per night point costs for the different DVC resorts, if you don't already have that.

http://www.wdwinfo.com/disney-vacation-club/DVCpoints.shtml

as already stated, you are dealing with an individual and not disney directly. so if the individual says no refunds for cancellations, that is what you are agreeing to. DVC points stays come with very minimal housekeeping (it's a "home-away-from-home" concept) and studios typically only have one "real" queen-sized bed and one pullout sofabed.)

DVC rentals work great for some people and they stress other people out. like i said, i was happier when i bought into DVC and control my own reservations. but they can be a terrific deal for onsite stays.

 

[RobDoc]

...

4. Is there an expiration date for the owner's points, and can that be determined? I assume that points quickly expiring will go cheaper than points that may be used well into the future.

Thanks again!

Since the other points have already been addressed, I'll comment on the expiration question.

Yes, DVC points do expire and travel must be completed by that date or the reservation cannot even be made by the member. If you have a confirmation number (it should be in your name and may be viewed online at the Disney site), the reservation is valid as of the time you review it. Be aware that the member is always in full control of the reservation from the time it is made until the renter checks in at the resort. The member is the one who would need to make room location requests, add the Dining Plan for those interested, or add Magical Express to the reservation. DVC will not discuss the reservation with anyone except the member who controls the reservation. This is one reason why we always suggest that renters are comfortable with the person they are renting from. In a few cases over the years, members have canceled reservation - leaving the renter without accommodations. This is the reason that rentals are often far less costly than those directly with Disney - with a much stricter cancellation/refund and payment policy.

There is no way (or need) to know in advance what the expiration date of the points might be, but many members will indicate that in their rental post. For the most part, if the rental rate is $10 or less, they might be "distressed" points where the owner wants to use them as quickly as possible. On occasion you might even find some in the $5-6 range and those typically will need to be used in the new 2-3 weeks when there will b minimal availability to find anything except a night here and a night there - likely at different resorts. You might find an offer in mid-January at 7$ per point for stays up through 1/31/15 - which likely indicates that they will expire on 1/31 (with a checkout on 2/1). For most members that would cover the dues on those points but nothing else - and for one resort that will not even cover the dues paid on those points.

If a member states that these are February, 2015 points - they would be valid for stays from 2/1/15 - 1/31/16. The points could be banked by the member which would extend their use an additional year - but they could not be used prior to their new extended date. Members can "borrow" points from the following year but there is risk involved for the member since those points could not be returned to the original Use Year if the reservation is canceled and cannot be banked either. Many members will require full payment in advance of even making a reservation using points borrowed from the next year, as some have been burned in the past when the renter never sent any payment.

 

[rf53]

Doc,

Thanks for your time. This is very helpful, and I am certain that this thread will help other novices as well.

So I get that these are transactions based on trust, and that there is a serious caveat emptor aspect to the process. I also understand how the rental procedure works in terms of contacting an owner or broker, and that the owner remains in control until one is in residence. Can we discuss how the points are calculated? At first glance, the DVC points calculator seems self-explanatory, but I think I am missing something.

Talk me through this using the following example:

For a one night stay (12/15/2014) at the Animal Kingdom Villas (studio value accommodations) the DVC points calculator says it will cost 9 points. Even at the high end of the point rental value scale that you gave me in a previous post ($15), that comes out to $135? How can that be? The going rate for accommodations at that resort on that night is over $500 per night. I feel stupid, but what am I missing?

 

[Msmithmd]

You're not missing anything. You just figured out why a lot of people own or rent DVC. It is a whole lot cheaper than cash reservations at the deluxe resorts, particularly if you book the cheapest room categories.

One thing to be aware, if you actually do want to book the AKV value villas category- this is a small number of rooms at a very high demand. To rent it successfully, you would need to have a rental agreement worked out with an owner before 11 months before check-in day for your reservation. Thus the owner could book for you right at eleven months.

Occasionally owners do get lucky and get the cheap room categories booked at a later date, but in general the categories at each resort that are the best financial bargains for lodging for the night are the first ones to fill up.

 

[chalee94]

For a one night stay (12/15/2014) at the Animal Kingdom Villas (studio value accommodations) the DVC points calculator says it will cost 9 points. Even at the high end of the point rental value scale that you gave me in a previous post ($15), that comes out to $135? How can that be? The going rate for accommodations at that resort on that night is over $500 per night. I feel stupid, but what am I missing?

DVC sells to owners by offering discounted accommodations. an AKV owner pays $6 per pt in annual dues for each point and also an allocation of the upfront purchase price, which probably works out to $9-10 per pt in total. so an AKV owner can book that for as little as $80-ish per weeknight, including tax.

one kicker is that there are only about 12-18 value studios at AKV (jambo house only) so they are difficult for non-AKV owners to get and they tend to be booked up by 10-11 months out.

another issue is that value studios are smaller than other studios, so you have to give up some size. not a big issue for a couples trip but for a family of 4 with 2 older teens, it's not a great fit.

one last issue is that the 9 pt per night price is only for the cheapest season and only for weeknights. so if you want to add in weekend nights, it pulls the price up.

so standard villas are more realistic than value villas for general pricing but yes, DVC members can get great deals on hotel room-sized studios in general and that's why they buy in. (although many do prefer the extra room in the larger villas - an OKW 1BR has 1000 sq ft of room to stretch out plus a full kitchen and washer/dryer.) if they don't use their pts, they can rent for good prices and still make a little money in the process (although DVC owners cannot be as free with refunds for cancellations as disney can).

 

[rf53]

You're not missing anything. You just figured out why a lot of people own or rent DVC.

Regarding the AKV... I get it, I used the resort as a random example, but what you say makes total sense.

So, accepting that point renting is a hidden gem, as with every great deal we always tend to be cynical and look for the landmines. Therefore, in determining if DVC point renting is for me (and others reading this), lets get further into the weeds.

More "new guy to point renting" questions:

Regarding reservations:

Assuming you have a very diligent and helpful renter:

Is obtaining a shorter-term reservation (3 months or less) one of the problems?

Is point renting better for those who like to book a year or more in advance?

Do you find that you tend to settle for what is available rather than what you want?

Regarding the provider (renter):

As stated previously in this thread, there is a risk to renting because the owner retains total control. If an owner is hit by a meteor and is no longer there to respond for the transaction your vacation can be ruined... So...

What advantage does a broker offer?

Is there more security for your transaction / reservation?

Aside from the fact that they take a cut, is there anything else I should know about brokers?

Misc.:

Is there any problem in linking the reservations to My Disney Experience?

 

[Mousewerks]

Regarding the AKV... I get it, I used the resort as a random example, but what you say makes total sense.

So, accepting that point renting is a hidden gem, as with every great deal we always tend to be cynical and look for the landmines. Therefore, in determining if DVC point renting is for me (and others reading this), lets get further into the weeds.

More "new guy to point renting" questions:

Regarding reservations:

Assuming you have a very diligent and helpful renter:

Is obtaining a shorter-term reservation (3 months or less) one of the problems?

Is point renting better for those who like to book a year or more in advance?

Do you find that you tend to settle for what is available rather than what you want?

Regarding the provider (renter):

As stated previously in this thread, there is a risk to renting because the owner retains total control. If an owner is hit by a meteor and is no longer there to respond for the transaction your vacation can be ruined... So...

What advantage does a broker offer?

Is there more security for your transaction / reservation?

Aside from the fact that they take a cut, is there anything else I should know about brokers?

Misc.:

Is there any problem in linking the reservations to My Disney Experience?

As long as the owner gives you the reservation number, they can be hit by a meteor and you'd still be able to check in (provided the dues were paid up). Likewise, if you have the reservation number, simply plug it into My Disney Experience.

Given the number of questions you have, I suggest doing some more research both here at the DIS and at dvcnews.com and at (point broker and board sponser) dvcrequest.com. Most of your questions are easily answered via these sites.

Best of luck getting all your questions answered. Perhaps what you should do is calculate the number of points needed for your reservation and just go do it. You'll learn a lot more.

 

[DebbieB]

As long as the owner gives you the reservation number, they can be hit by a meteor and you'd still be able to check in (provided the dues were paid up). Likewise, if you have the reservation number, simply plug it into My Disney Experience.

Given the number of questions you have, I suggest doing some more research both here at the DIS and at dvcnews.com and at (point broker and board sponser) dvcrequest.com. Most of your questions are easily answered via these sites.

Best of luck getting all your questions answered. Perhaps what you should do is calculate the number of points needed for your reservation and just go do it. You'll learn a lot more.

Maybe. If they are hit by a meteor and die, their heirs may sell the DVC and if it's before your reservation, it would be cancelled. Same if they go into bankruptcy and it's foreclosed. One thing about going with a point broker, they retain half your money until you check-in. At least David's works that way.

 

[smiths02]

You can save money, but downsides include:

Less flexibility when changing or cancelling the reservation.

Less flexibility when initially making a reservation (you have to go by what is available)

Possibility (albeit small) for a scam-you can use a broker to reduce this possibility, but then you have even less flexibility and have to pay more per point

No daily housekeeping

Room decor is often different and the DVC resorts aren't updated as often as regular resorts

If you have a family of 4 or fewer and you don't need a kitchen, you can save money getting a studio at a deluxe resort BUT with Disney discounts, you can often get a regular room at a moderate resort for about the same price or less.
On the flip side, if you have a larger family and need a kitchen, you can definitely find something cheaper off property than renting 1-2 bedroom villas through DVC

 

[chalee94]

More "new guy to point renting" questions:

Regarding reservations:

Assuming you have a very diligent and helpful renter:

Is obtaining a shorter-term reservation (3 months or less) one of the problems?

for both owners, and by extension, renters: yes. availability at the highest demand resorts and lowest supply villa types gets booked up very early.

at 3 months out, you'd often wind up in SSR, which is a nice resort but it's the largest DVC resort (high supply) and it is not walkable to a theme park (lower demand)...

Is point renting better for those who like to book a year or more in advance?

the earliest a DVC owner can book a reservation is 11 months out at their home resort.

renting at 11 months out (or a little ahead to find an owner before the booking window opens) is a little risky since you typically get no refunds if you have to cancel. but if you have a specific villa type in mind (value villa at AKV, standard view villas at BWV or BLT), then booking that early may be your only option.

Do you find that you tend to settle for what is available rather than what you want?

the only time i rented, i settled for SSR since it was available a few months out (also got it at a discounted rate - i think $8 per pt.)

What advantage does a broker offer?

Is there more security for your transaction / reservation?

Aside from the fact that they take a cut, is there anything else I should know about brokers?

as someone else said, david's holds aside some money until the trip is over to make sure things are on the up and up. brokers like david are also used to new renters and can explain things more carefully IMO than some individual renters who are not very experienced with the process. it's been said that there is a small risk of fraud, but a much bigger risk of misunderstandings - i think david has seen a lot and can anticipate and prevent some of those misunderstandings before they become a real issue.

Misc.:

Is there any problem in linking the reservations to My Disney Experience?

nope. like i said earlier, you should have no trouble finding the reservation online.

 

[rf53]

You can save money, but downsides include:

Less flexibility when changing or cancelling the reservation.

Less flexibility when initially making a reservation (you have to go by what is available)

Possibility (albeit small) for a scam-you can use a broker to reduce this possibility, but then you have even less flexibility and have to pay more per point

No daily housekeeping

Room decor is often different and the DVC resorts aren't updated as often as regular resorts

If you have a family of 4 or fewer and you don't need a kitchen, you can save money getting a studio at a deluxe resort BUT with Disney discounts, you can often get a regular room at a moderate resort for about the same price or less.
On the flip side, if you have a larger family and need a kitchen, you can definitely find something cheaper off property than renting 1-2 bedroom villas through DVC

Thanks. You have hit on some important points. While I am leaning towards giving point renting a shot, our situation is that as Florida residents we visit Disneyworld quite a bit and on each trip we have a different mindset.

Sometimes we just go for a weekend to get away and hit the theme parks. During these trips a value resort or a nicely priced moderate will do just fine since it is simply a place to crash, and you can't beat the price.

Sometimes we will decide to spend a week at Disneyworld. For a family of four, a week at a value / moderate resort can drive you nuts, so we have to get two rooms or upgrade. It is for these occasions that I am considering point renting.

Even with Florida resident discounts a week can get pretty expensive at a deluxe resort or villa. A while back I did a comparison between the cost of a Disneyworld deluxe resort and five of the world's top rated hotels for the same night. Disney's hotels were more expensive.

Your points about the limitations of the DVC villas are food for thought. While we would be fine with settling for the available villa at any given time, I am not crazy about your observation that DVC villas are not decorated as nicely, and are not updated as much as the other rooms. When / if we go to a villa it is a special thing and our expectations would be high regardless of the bargain.

 

[rf53]

Thank you for your answers Charles. I like the safety net David provides by holding half of the money. He also seems to have a great reputation. All pluses. However, the $8 bargain you described, and the hundreds of $10 to $12 deals one sees advertised here make his $14 standard rate seem like something one would want to avoid if possible.

Decisions, decisions!

 

[conandrob240]

It is extremely rare you'll see points offered at $8 or even $9 pp anymore. On very rare occasion, you might see these for a very last minute reservation or for points that expire within 30-60 days. The issue here is that in many cases, the only resort that will be available,within 60 days is SSR or OKV sometimes AKV so your options will be very limited.

The going rate seems to be $12 nowadays. A more common range is $10-13pp.

 

[rf53]

It is extremely rare you'll see points offered at $8 or even $9 pp anymore. On very rare occasion, you might see these for a very last minute reservation or for points that expire within 30-60 days. The issue here is that in many cases, the only resort that will be available,within 60 days is SSR or OKV sometimes AKV so your options will be very limited.

The going rate seems to be $12 nowadays. A more common range is $10-13pp.

Honestly, if I can get a nice deal like $8/pp, I wouldn't mind a spontaneous stay at SSR whatsoever. I know it gets a bad rap as being tucked out in the hinterlands, and having slow bus service to the parks, but I have had nice stays there. It is quiet, and the boats to Downtown Disney were great. I hope they keep that feature for the new Disney Springs.

As for the point avg value... I calculated an average based on the points available for rent on this db two days ago. It came out to $12.30. Some are asking upto $16+ which is ridiculous since the brokers are selling at $14... but whatever.

 

[rf53]

Thanks to everyone who has answered questions here!

My understanding of DVC points is that with the points you can book any resort, subject to availability, seven months before your check-in date. However, your points are tied to a home resort where you can reserve as much as eleven months in advance... and only owners with that home resort can book within the 11-7 month window.

So, when someone advertises points for rent as "BLT" points, for example, does that mean that those points can be used for a BLT reservation 11-7 months out, and any other resort 7 months and in?