How easy or hard is it to rent points?

[amymgould]

Knee deep in our research to purchase DVC. Trying to decide on how many points. Minimum of 100 but thinking about 150-200 and rent out the points when we aren't going to use them. Wondering if this is a difficult thing to do or if I'd be able to rent them easily. Home resort would be BLT, if that makes a difference. TIA!

 

[LAX]

Knee deep in our research to purchase DVC. Trying to decide on how many points. Minimum of 100 but thinking about 150-200 and rent out the points when we aren't going to use them. Wondering if this is a difficult thing to do or if I'd be able to rent them easily. Home resort would be BLT, if that makes a difference. TIA!

If you use the service of reputable rental agencies, it's fairly easy as they do most of the work for you. All you need to do is make the reservation once a prospective renter is lined up. However, you will get paid less per point than if you were to rent them yourself. I have used it once and think it's worth the cost (not unreasonable, IMHO). While the vast majority of private rentals work out without a hitch, I am the ultimate pessimist that always think I would be that one in a million DVC member that gets scammed.

If you are contemplating renting out extra points, I think you need to consider the possibility of the rental market crashing (for whatever reason that may be) at some point during the life of your contract and determine if you can handle that.

LAX

 

[amymgould]

If you use the service of reputable rental agencies, it's fairly easy as they do most of the work for you. All you need to do is make the reservation once a prospective renter is lined up. However, you will get paid less per point than if you were to rent them yourself. I have used it once and think it's worth the cost (not unreasonable, IMHO). While the vast majority of private rentals work out without a hitch, I am the ultimate pessimist that always think I would be that one in a million DVC member that gets scammed.

If you are contemplating renting out extra points, I think you need to consider the possibility of the rental market crashing (for whatever reason that may be) at some point during the life of your contract and determine if you can handle that.

LAX

Thank you! Great things to think about. I actually think we would have several friends and family members that we could potentially rent to, however, I always want a backup plan (or two!)

 

[LAX]

Thank you! Great things to think about. I actually think we would have several friends and family members that we could potentially rent to, however, I always want a backup plan (or two!)

I am not sure about you or others here. I personally don't feel right renting to friends and family at rates charged by the rental agencies, let alone going private rental rates. Thus, you might just end up breaking even on annual dues, which would be okay if my friends and family were to approach me. Obviously, the big advantage is that you don't have to worry about getting scammed!

LAX

 

[amymgould]

I am not sure about you or others here. I personally don't feel right renting to friends and family at rates charged by the rental agencies, let alone going private rental rates. Thus, you might just end up breaking even on annual dues, which would be okay if my friends and family were to approach me. Obviously, the big advantage is that you don't have to worry about getting scammed!

LAX

Good point. I wouldn't charge the same rates as rental agencies either, however, I don't want to "lose" money. Just another thing to think about

 

[Cyberc1978]

I'm kinda in the same boat as you guys. If I should rent to friends or family I wouldn't charge normal rental prices but more than mf. IMHO when you buy DVC you have a hefty outlay of cash and if others are using it family or not they should at least pay above mf for it.

I have rented my hgvc points in the past to friends and family and the "Normal" rental price is 0.25-0.30$ pp + any hgvc fees and family paid 0,15$ + any hgvc fees.

Some will argue that you are making money of family or friends I would say I'm not, I'm just recouping some of the outlay that I had. They still get a big discount.

 

[Alice Sr.]

Knee deep in our research to purchase DVC. Trying to decide on how many points. Minimum of 100 but thinking about 150-200 and rent out the points when we aren't going to use them. Wondering if this is a difficult thing to do or if I'd be able to rent them easily. Home resort would be BLT, if that makes a difference. TIA!

You are not going hog wild but I would still be cautious about buying more than you think you will use. Whether you intend to go once or twice a year or once every 2 years. Dave certainly makes it easy to rent what you don't need but in my opinion it is still a pain in the B***. I personally would not rent on my own, like @LAX I think the risk out ways the benefit. I purchased my 1st contract based on staying every October in a 2 bedroom and that model worked well for me. I added on because I was a junkie but still have only rented a few times over the years.

 

[CarolMN]

If you plan to rely on brokers to rent your points, be sure to check out their terms before you decide. Some of them require a minimum and not all points will rent at advertised price. It depends on resort and timing.

 

[LAX]

If you plan to rely on brokers to rent your points, be sure to check out their terms before you decide. Some of them require a minimum and not all points will rent at advertised price. It depends on resort and timing.

While the premium vs. non-premium resort pricing will continue (though the gap has narrowed recently at one of the rental agencies), I doubt anyone of them would insist on a minimum as long as one has enough to make a booking (maybe a two-night minimum perhaps) since they are really short on points to rent.

LAX

 

[crisi]

The real thing about having extra points just to rent is that its a poor investment in your capital. It isn't hard to do, its just that with the cost of ownership, you would historically do better investing your money - or even paying down your mortgage.

Its a good thing to do if you have some extra points because you are skipping a year - or if you see your points needs growing in a few years and want to buy now because you know that in three years you'll want a two bedroom - its probably not the wisest decision to buy extra to rent.

 

[LAX]

The real thing about having extra points just to rent is that its a poor investment in your capital. It isn't hard to do, its just that with the cost of ownership, you would historically do better investing your money - or even paying down your mortgage.

Its a good thing to do if you have some extra points because you are skipping a year - or if you see your points needs growing in a few years and want to buy now because you know that in three years you'll want a two bedroom - its probably not the wisest decision to buy extra to rent.

I agree with your point in principle, but if a nice contract with an extra 20-30 points come along, it may be worthwhile to bite.

LAX

 

[crisi]

I agree with your point in principle, but if a nice contract with an extra 20-30 points come along, it may be worthwhile to bite.

LAX

It would be harder to rent just 20 or 30 points. Brokers do have minimums and not many renters are looking for one or two nights. You'd be combining years to rent every other year - banking AND borrowing to not waste points - looking for 40 point rentals on the low end. 40 is only going to get you four nights in an OKW studio in the lowest point season. Sixty might be a little more workable - you are now looking at not quite six nights (due to the weekend) in an OKW studio.

I was watching the rental boards here for a while, and renting it yourself, a small number of points will eventually move, but not quickly or easily.

So my take is that the combination of tying up your capital plus the additional work of renting out a small number of points means it probably isn't worth it - unless its an awesome-can't-pass-it-up deal.

 

[_auroraborealis_]

I think David's was the main agency with a minimum, and I think they dropped that requirement right now given the demand for bookings. That said, if you only have points enough for a night or two in a studio, those are less common rental requests so they will be harder to rent. (People may try to book those for pre/post cruise or similar scenarios.)

 

[amymgould]

Thanks all! I love reading all perspectives as I often read something I hadn't thought of. Right now we are thinking about 150 points, but as someone mentioned, if a good contract comes along with more or less, we may jump on it! Thanks!

 

[LAX]

It would be harder to rent just 20 or 30 points. Brokers do have minimums and not many renters are looking for one or two nights. You'd be combining years to rent every other year - banking AND borrowing to not waste points - looking for 40 point rentals on the low end. 40 is only going to get you four nights in an OKW studio in the lowest point season. Sixty might be a little more workable - you are now looking at not quite six nights (due to the weekend) in an OKW studio.

I was watching the rental boards here for a while, and renting it yourself, a small number of points will eventually move, but not quickly or easily.

So my take is that the combination of tying up your capital plus the additional work of renting out a small number of points means it probably isn't worth it - unless its an awesome-can't-pass-it-up deal.

I am not disagreeing with you in principle, but sometimes the desired number of points on a contract with the right UY may be hard to come by. As far as shorter-stay reservations go, it may be more popular than you think, especially for those that like to resort-hop.

LAX

 

[Dean]

Knee deep in our research to purchase DVC. Trying to decide on how many points. Minimum of 100 but thinking about 150-200 and rent out the points when we aren't going to use them. Wondering if this is a difficult thing to do or if I'd be able to rent them easily. Home resort would be BLT, if that makes a difference. TIA!

I wouldn't buy to rent but I would buy sufficiently to do the trips I needed. Considering larger contracts will give you more contracts to chose from plus you need a cushion anyway of 10-20%. If you're looking at studios during lower season, I'd go at least 20% over anyway, normally not under 150 or so.

 

[kboo]

I'm just waiting for one of the regulars to come in and say that if it's a few points extra, you're going to end up staying an extra night here or there to use the extra points, or changing your vacationing style. I'm not worried about extra points, we'll figure something out. And I've had a few friends/coworkers who've already asked me to let them know first (before putting points up for rent) if they can rent them. Ha! I already told him we're not likely to have extra points because ... we are already planning to bank our "extra" 2017 points to take 2 trips in 2018 instead of just 1.

 

[Dean]

I'm just waiting for one of the regulars to come in and say that if it's a few points extra, you're going to end up staying an extra night here or there to use the extra points, or changing your vacationing style. I'm not worried about extra points, we'll figure something out. And I've had a few friends/coworkers who've already asked me to let them know first (before putting points up for rent) if they can rent them. Ha! I already told him we're not likely to have extra points because ... we are already planning to bank our "extra" 2017 points to take 2 trips in 2018 instead of just 1.

While I didn't spell it out, it was implied in my post above. It happens a large % of the time, esp when studios are the plan.

 

[Orsino]

I'm kinda in the same boat as you guys. If I should rent to friends or family I wouldn't charge normal rental prices but more than mf. IMHO when you buy DVC you have a hefty outlay of cash and if others are using it family or not they should at least pay above mf for it.

I have rented my hgvc points in the past to friends and family and the "Normal" rental price is 0.25-0.30$ pp + any hgvc fees and family paid 0,15$ + any hgvc fees.

Some will argue that you are making money of family or friends I would say I'm not, I'm just recouping some of the outlay that I had. They still get a big discount.

You definitely are not making money on friends and family. I'd say break even is more like $2.00 + maintenance fees, though it depends on how much one paid for their points.

 

[FireflyTrance]

My thoughts on this are that 150 points are not that many. If your plan is to stay a week in a 1 bedroom each year, you will need that many or more. A week in a studio can be done for less, however sometimes no studios are available at 7 months at the resort you want and you end up having to get a more expensive room category. In general studios are harder to book than 1 bedrooms. If your plan is to go every other year and stay in a studio, I think it would probably be better to just buy less points.