history of the rental point price

[sjdisneywedding]

for those of you that do rent out your points, have any of you been doing it for awhile now? I am curious as to where this $10 per point came from, how long its been at $10, how long you feel it wil stay at 10, etc. Was it say 6, 7, 8 dollars at a time or has it just sat at 10 for awhile. I now there a few cases where it runs from 8-11, but it seems the average is centered right about 10.

I just cant believe $10 is the going rate, the renters are getting dvc accomadations for the upper end rate of a value resort or the lower end rate of a moderate.

Seems like $12 would be more in the ballpark and I wouldnt even think $14 was too high in some instances

 

[Candace]

I rented some of mine out for the first time 4 - 5 years ago, and I got $10 per point. I rented some out recently and still got the same. I needed to rent these or lose them (holding points), so I went with the going rate. I agree that it seems the rental price should have increased by now, since hotel rates certainly have, but I went with what "everyone" else was doing.

 

[sjdisneywedding]

hmm so in 4-5 years the price per point to buy in has gone up, the hotel prices per night have gone up, but the rental price is stationary.

not good

 

[Cobra B.]

sj, I absolutely agree with you. I would like to purchase a couple of packages right now for the sole purpose of renting until I need them. It just is not cost effective unless you have owned them for a while. And don't dare go out and try to rent something for more than 10.00 or someone will slap a big "Don't Try That Here" reply on your email (and before anyone feels compelled to react to this, it has happened to me).

You are right the accomadations you offer as a rentor are far and away better then they can get at a standard resort. A night at regular rates at Carribean Beach is around 149.00 weekdays. A night at Old Key West S-Th is 10 points on average or 100.00 to a renter.

They should not only be okay with a higher rate but should expect it. And that doesn't even account for the risk you take as a rentor. What if damages occur? I agree that 12.00 is a good cost of living increase. But until you can't convince the price fixers, you will never get it.

 

[rinkwide]

...don't dare go out and try to rent something for more than 10.00 or someone will slap a big "Don't Try That Here" reply on your email...

Avoid those morons and rent your points ouy on eBay.

 

[AFMom]

10pp issue


I have rented some points twice (husband in the military and unable to plan a vacation, etc) - both times for 10pp - but I do feel the price is too low. It may be a profit for people who bought when the points were significantly cheaper - but we bought in the Fall - and the purchase price is only going up. Also - maint fees have gone up. I couldn't believe the rack rate of the last rental I did! I saved my renter over $2000. I think that's great - but do feel that for our time, money spent, and risk, asking $11-$12 pp is completely reasonable. Hopefully the 10pp thing will become a thing of the past as more and more owners are paying more and more for their points.
That said - I love to be able to easily rent my points to wonderful DIs-ers whom have always been great to work with - that alone may be worth only getting $10!

That was my post on the other boad for a similar issue. It's good to see there are others who feel the price should go up. I can't believe that it was 10pp 5 years ago!!! I think baseing it off the CRO price - say take a percentage off - would be more fair to the owners of the points. However - again - one of the reasons we can rent so easily is that it is such a good deal. I certainly need that flexibility now, and wouldn't want to loose it. I do think an increase to( at least) $12 would be a better deal for the owners and still a great deal for the renters. But with so many people selling for 10pp or even less, it will be difficult.

 

[LIFERBABE]

And don't dare go out and try to rent something for more than 10.00 or someone will slap a big "Don't Try That Here" reply on your email (and before anyone feels compelled to react to this, it has happened to me).

I successfully rented out my points for more than 10pp but I have to agree with this statement. I received a couple of ugly PM's about how they got points for $9 or $10 and basically trying to make me feel bad for asking more, like I was gouging.

I think the price fixers are those fighting to keep 10pp as the standard.
It's a ripoff to the new members plain and simple unless the points are distressed. Who are they to determine what's a decent profit for the member when CRO is charging double?

Most Dissers plan their trips 1 year out and have gotten comfortable with the fact that if codes don't come out, they will just rent DVC points.

No one is giving their rooms away anymore. Not Universal, not the DTD resorts, not Swan and Dolphin so why should we be expected to offer a cheap source of onsite accomodations?

No we are not CRO and have different terms, and that should be compensated for, but I think we are overcompensating.

I just bought a scratch n dent freezer last week, it was out of the box, and had scratches on the door. They didnt give it to me, but discounted it 25% for my inconvenience. I was happy to have it!

It still freezes food and it's in my garage so it serves the same purpose as a pretty one and I saved money.

 

[spiceycat]

when I first joined this website it was $8 a point. It became $10 a point when DVC say that was what points were worth - the $1,500 on your 150 points.

Until they say it is worth more - I don't think you have a chance of raising because someone else will offer the $10 a point.

if you want more - put ads in your local paper.

go use

www.redweek.com

or do what rinkwide says and go with ebay.

or you can go the other - make a reservation at a time you know will be difficult - Thanksgiving, the first 2 weeks in Dec, the Oct/Nov food/wine festavial if you own bwv or bcv - then you can rent these times for more than $10 a point - probably quite easily.

since you have the reservation - part of the problem of renting points - getting the room is gone.

now others here will get mad that you got say CHristmas week to rent - but hey they could too...

last year due to my brother canceled on me at the last minute - I had a Thankgiving to rent in the last month - so I gave it 2 weeks and it rented in a couple of days. Now the first guy wanted me to get him another villa (impossible at that time) and then tried to get me to lower my price. I had 5 people ask about that one - so I just went to the next on the list.

you are in control - just because someone want you to lower your price - you certainly don't have to - just find another renter.

 

[CarolMN]

IMHO, it's all about supply and demand. As long as there are lots of owners willing to rent for $10 or less, that is what the price will be. (It really has very little to do with what the underlying cost to the owner is - you can only sell for what the market is willing to bear).

Those of you who feel the price is too low can simply hold out for more even though there is obviously some risk in that position. As stated, you may get some nasty PMs/emails as well, but who wants to rent to those kind of people anyway?

Several owners have posted here in the past that they routinely ask for more and get it.

Best wishes -

 

[JimMIA]

Gotta go with Rinkwide. If you look at Ebay, you will see a number of DVC rentals which appear to be renting well above $10 per point.

And I'm pretty sure there wouldn't be a bunch of them there if they weren't going. Even at the prices shown, the buyers are getting a 40-50% discount off regular prices.

 

[pumpkinboy]

Any time I have to go make folks a ressie, it's worth more than $10 a point, unless they are distressed points. If Überplanners want BW view or Std view at more than 7 months, then I'll charge more than $10 per point, bcs it's worth it.

However, if I can do a simple transfer, then perhaps $10 a point isn't so bad. Also, if I'm dealing with really nice ppl, then $10 is also OK. Then again, if the potential renters look to be difficult to deal with, then I'd just as soon deal with someone else; price hagglers would fall into that category, as would very disorganized ppl.

I actually rented a BWV ressie during F&W last year at 10 months to a really nice family who live locally but contacted me thru this board: they got my points for $10 a point bcs they were organized, easy to deal with and paid on time.

 

[goldilocks_63]

If prices go up again, I will probably raise my rental prices.

At any rate, I've decided my BCV points are too dear to me, so will either raise the PP for a rental, or most likely, not rent at all (sentimental reasons).

But for me, I bought SSR at $90 /pp, so was thinking up renting these for more than OKW points.

Just my opinion,

Best wishes to all, Goldi

 

[SoCalKDG]

I posted this elsewhere, but seems a good place to repost.



Well, checking EBAY I came across the following info for rentals.

5 day vacation studio - Sunday to Friday. 5 nights, 6 days. Any season except Premier

This is what they went for

OKW - $575 average over 5 rentals. Total max pts. 55
BWV - $725 average over 4 rentals. Total max pts. 55(the standard view was offered)
VWL - $850 average over 2 rentals. Total max pts. 70

So on Ebay to the general public, you can get $11 per point for OKW, $13 per point for BWV, and $12 for VWL.

So $10 is too cheap, and each resort costs differently as well.

So if you have time, it looks like you should list on EBAY. Put the starting bid at $9.00 per point, give a buy it now for $11-$13(depending on resort) and you get the added convienience of a contract through EBAY as well as the money up front.

By the way, I've never rented my points. I haven't even went on my first official trip home yet(this April).

If tourism stays hot, Disney will continue to raise room rates resulting in the increase if $ per point that we can get.

Now I wish I had enough points to actually rent out some. Ha

 

[disneyberry]

[SIZE=+0]Just a rehash of my comments also posted elsewhere. MHO below is only relevant to rentals, and does not include transfers (which are transactions between 2 DVC members, and not the same thing).

I really wish this board would move away from the per point pricing. When members rent out their DVC ownership, they're really only renting out a reservation. A "reservation" is a few nights accommodations at a Disney Vacation Club resort. Points shouldn't even come into play, so there shouldn't have ever been a per point pricing structure.

Unfortunately, at this point it's swimming upstream to try to change the structure. That's not to say that I don't advocate trying. It's just frustrating.

My thoughts from another thread (slightly edited for clarification):

This is a touchy subject (snip). Actually, there is a small minority of DVC members who bypass the subject of points entirely, and set their rental rates by the night (i.e. saying your unit goes for $120/night), or by the entire stay (i.e. $2000 for the entire week). IMHO, this has always seemed to be a more intuitive way of pricing than by the point. Changing to move away from any per point pricing would do far more to correct anything than trying to just charge $1 more or $2 more per point.

Points were never meant to have a value, even by DVC Mgmt. They really are only a symbolic representation of our portion of ownership interest relative to the whole membership; and they happen to also facilitate members' reservation process in our interactions with DVC Member Services. They just were never meant to be rented using an arbitrary rate per point.

BTW, when I first learned about renting (2001), I contacted probably a dozen different owners who were asking anywhere from $8/pt to $13/pt (the $13 high end was from 2 or 3 owners who felt they needed to charge more for a very low quantity point rental.) I don't think the prices have budged at all in 4 years, which is baffling considering how much the dues and CRO rates have gone up since 2001.

I think many members value their points differently. Plus there are also a lot of calculations done ignoring time value of money and opportunity cost. On top of that, DVC started doing MB with $10/pt valuation. And lots of new owners are renting out points for the first time, so are afraid they won't be able to rent their points out if they don't charge the "normal" rate. I suspect that's why things have stayed the same over the years.[/SIZE]