How easy is it to rent out points?

[Sandisw]

I do think some of the flexibility is going to suffer. Depends on people's willingness to accept risk. You may now have to provide lower pricing on points that are for bookings in the last 4 months of UY or are banked/borrowed even if booking 11 months out.

I agree, With some renters poised to lose thousands, that risk is greater than most of us even thought about,

Saving 50% is nice, but I imagine there will be less people willing to lose it all,

 

[Perloo]

Rental price per point was stuck at $10 a point for years. Dues continue to go up and are now in the $7-8 a point range. Many owners rented out their own points. One broker acted as am associate on an owner's points to make the reservations. DVC got wise and limited the number of contracts a person could be an associate. The new model of finding people wanting a reservation and matching them up with owners arose.

The point brokers were part of the reason for the price per point to go up. They needed points to rent out and they needed to pay owners to get the use of those points. Plus they wanted their cut. Prices rose to about $15 a point quickly with owners getting about $11-12 a point. With more brokers getting into the game, there was a lot of competition for owners. Thus, the price per point started to rise even more so owners could be paid more. The guy paying the owners the most was able to get the most owners and make the most rental deals. At first the owner got 50% of the payment to make the reservation and the other 50% when the renter checked in. Again, to get more owners, the amount paid out to owners immediately increased.

So that's a quick history of renting.

Quick history was perfect, exactly what I was looking for.

 

[LAX]

And if a lot of the brokers go out of business due to COVID-19, I can't help but wonder what that will do to rental prices. It wouldn't surprise me if they fall - maybe even a lot.

Another risk to consider for those who think buying to rent is a good strategy. YMMV.

In the near future, it will definitely take a big hit. That's not even factoring the impending recession (if we are not already in one). However, if Disney is able to raise its lodging prices after this mess, the potential savings would likely be able to entice some people to roll the dice. After all, how often would a catastrophic event that results in closure of Disney's parks and resorts occur (even hurricanes don't hit Lake Buena Vista often, right?)?

LAX

 

[Brian Noble]

I’ve been saying for years that buying to rent was much more risk than recent times would indicate. When the economy (and discretionary travel demand) is booming, it’s pretty easy. But discretionary /leisure travel is one of the first things to go when consumer confidence is shaken. During the Great Recession, owners were renting at fire sale rates, if they could find a renter at all.

 

[Sandisw]

In the near future, it will definitely take a big hit. That's not even factoring the impending recession (if we are not already in one). However, if Disney is able to raise its lodging prices after this mess, the potential savings would likely be able to entice some people to roll the dice. After all, how often would a catastrophic event that results in closure of Disney's parks and resorts occur (even hurricanes don't hit Lake Buena Vista often, right?)?

LAX

I dont know. Hearing stories that people are out thousands of dollars would be enough to scare me.

Id stay at a moderate resort instead

 

[LAX]

I dont know. Hearing stories that people are out thousands of dollars would be enough to scare me.

Id stay at a moderate resort instead

Not trying to argue your sentiment, but we have had some high profile bankruptcy of travel operators (airlines, travel package operators, etc.) in the past where people ended up losing thousands of dollars. Yet, some people still have been willing to gamble as long as the payoff/discount is worthwhile to them since those times, including the many DVC renters prior to this disaster. Of course, I am not talking about the DVC rental business recovering in a few months or a year from now.

LAX

 

[Sandisw]

Not trying to argue your sentiment, but we have had some high profile bankruptcy of travel operators (airlines, travel package operators, etc.) in the past where people ended up losing thousands of dollars. Yet, some people still have been willing to gamble as long as the payoff/discount is worthwhile to them since those times, including the many DVC renters prior to this disaster. Of course, I am not talking about the DVC rental business recovering in a few months or a year from now.

LAX

The only thing though is if you don’t fly, you have to drive, which makes it a different situation,

A DVC villa is a room at Disney, and so Is a moderate resort. You are still getting a product that serves the same purpose,

What I think is more likely is the savings is going to have to be substantial for anyone on the fence, which means a lower price for owners, And, if Disney goes back to 30 to 40% discounts, it will be tough to compete.

Plus, there will be a lot more negative posts here warning potential renters to be sure they can afford to throw the money away.

 

[LAX]

The only thing though is if you don’t fly, you have to drive, which makes it a different situation,

A DVC villa is a room at Disney, and so Is a moderate resort. You are still getting a product that serves the same purpose,

What I think is more likely is the savings is going to have to be substantial for anyone on the fence, which means a lower price for owners, And, if Disney goes back to 30 to 40% discounts, it will be tough to compete.

Plus, there will be a lot more negative posts here warning potential renters to be sure they can afford to throw the money away.

Don't we give warnings to many people about buying DVC? Yet, there are still plenty of people who really shouldn't be buying go on to throw their money away!

LAX