Isn't it setting a precedent for rentals?

[tedhowe]

DrTomorrow;
As to your point about the rentee having serious risks, I've read about a lot more horror stories the other way around, the risks are just as great for the renter.

I would disagree with your last point here. The risks are not as great for the renter. If the renter structure the deal appropriately, there is a minimal amount of risk - and minimizing that risk does not necessarily minimize the risk to the rentee.

If, as a renter, I receive payment in full for a reservation that is booked months from now, I can send the rentee the reservation letter as soon as I receive it and then turn around and cancel the reservation. The rentee may not even KNOW that the reservation was cancelled (unless they follow up with DVC themselves) until they arrive.

The alternative, to go through CRO and have a reservation that is only paid for once the vacation happens, has a very real value - I would put it at at least $2.00 to $3.00 per point.

I have only rented once. I had about 50 points expiring within about 30 days, that I could not bank, and I rented for $7.50 per point.

There are many factors that affect the market price - not the least of which is irrational fears or desires on the part of human beings involved in both sides of the transaction.

Ted

 

[d-r]

I honestly don't think it is very complicated.

It's a free market.

If you want to rent points, ask for the price you want. If anybody wants to rent them from you for that price, they will. If they don't, they won't.

There is absolutely no value intrinsic to the points (other than booking a room and the joy of going to disney world). They are worth what someone will pay for them. They aren't worth $10 or $20. Someone might think they are worth a certain amount because they paid X for them for Y number of years, and the pay Z in dues for the each year. Sorry, they aren't. They are worth what someone is willing to pay for them. There is no "fair price." This isn't communism world. They are worth what someone will pay.

What people are willing to pay has nothing to do with disney's rack rates, if people are savvy enough to find the rent/trade board they are savvy enough not to pay rack rates. It has nothing to do with what the points cost you or how much dues are. It does have something to do with the availablity of discounts on rooms at disney, and how many people want to go Disney, because that relates to how many people are out there wanting to rent points. The more people who want to go to Disney, the less availablity of discounts at disney resorts, and the more poeple who want to rent points. The more people who want to rent points, the higher the price. The more members who want to rent points, the lower the price. It has to do with the availability of points. If more people have points than there are people who are willing to rent them, the price is going to have to be lower if you are going to rent them.

But it all boils down to this, if you want to rent points and want to ask more for the points, ask for it. Someone might pay it, or they might not. Just go ahead and ask for it, don't ask permission from everybody else. Other people will ask for what they want to ask for, and they won't ask your permission.

 

[skelooch]

d-r;
I agree with you in principle that it is a free market, and it's all about supply and demand. I just don't understand why some members (notice the some Dr Tomorrow) are willing to rental their property to strangers in some cases at less than half of what Disney is willing to sell the same accomadations for.
I also feel that some of those renters are not going to have the same regard for that property as the owners do.
These are my opinions, I am not trying to tell anyone what to do with their points, I would probably do the same thing as Dr Tomorrow, give them away to family or friends. I'm just befuddled why some members don't think there not worth more than $9-$12/point. Maybe I'll appreciate the low prices if someday I have to rent some additional points.
Oh Well, I guess we've beaten this one to death.
On to bigger and more important things.

 

[Dean]

Done correctly the renter has minimal risk and the rentee has far more. For that risk they are getting a great deal if they do their homework. Renting can be for half of CRO but it is not necessarily so. They take the risk to get the savings. Those risk also are controllable. Anyone can rent for what they can get or want to. If one wants to rent me their points for $3 per point, my email and PM are listed. As for the value of one's investment, every transaction has some affect as even those who have no plans to rent might have to sell or rent some day due to changes in circumstances. I'd also agree that many times points are rented far too cheaply, IMO of course.

 

[crisi]

d-r;
I agree with you in principle that it is a free market, and it's all about supply and demand. I just don't understand why some members (notice the some Dr Tomorrow) are willing to rental their property to strangers in some cases at less than half of what Disney is willing to sell the same accomadations for.
I also feel that some of those renters are not going to have the same regard for that property as the owners do.
These are my opinions, I am not trying to tell anyone what to do with their points, I would probably do the same thing as Dr Tomorrow, give them away to family or friends. I'm just befuddled why some members don't think there not worth more than $9-$12/point. Maybe I'll appreciate the low prices if someday I have to rent some additional points.
Oh Well, I guess we've beaten this one to death.
On to bigger and more important things.

I kind of thought he explained it. Some members are looking to rent points quickly. Some have points that are distressed - you really can't get much more than $6 a point for points that have to be used in the next sixty days. Some don't need to make money on their points - they want to cover the cost of a cruise or something else and believe they do quite well with $10 per. Some are really only interested in covering their dues. Not everyone has profit maximization as their goal in renting.

And people will not rent if rates are about rack....they are looking for "deluxe accomodations at a moderate price." When rates are near rack - or even what they anticipate getting a good code for, they'd rather do business with Disney who will let them cancel on (almost) no notice, give them housekeeping every day, not make them pay half up front, and who they feel comfortable calling every three days with "is there a new code." "Can you change my building request." And perhaps most importantly, where the exchange involves no risk. DVC members (and guests and renters) seldom get the "touches" of a CRO resort - towel animals and stuffed animals arranged on the bed, surprises for special events, etc.

 

[WDWMom]

Sometimes you need to walk a mile in some one else's shoes. There are as many perspectives to this issue as there are DVC members. Keep in mind that there are many DVC members who purchased 14 (?) years ago for roughly half what Members are paying today. These members have had that much use out of their points plus 10 yrs of free park passes to boot. Their idea of profit requires alot less money than someone who purchased last year. For them, gettting $5 more from their yearly dues than what it costs them might seem like found money.

As A member who's loan was paid off long ago I forget sometimes what my points might actually be worth. I am not feeling the pain of making monthly payments. Most of us agree that there is a break even point of 7-8 years for those who paid Late 1990's rates. So I have already received my value for what I paid. To me, my dues are now my yearly cost. While I know that if I looked at this equation from a investment return point of view the numbers would look different, I don't because that was not my intention when I purchased. So if I can get a return of $5-$6 over my dues with a painless transaction then that is what seems like a fair return to me. If I had to spend two weeks checking reservations and dates and potentially dealing with a disgruntled renter after the reservation, then that would not be worth the extra couple of hundred I might make by " maximizing ". Peace of mind is worth more to some than others.

 

[drakethib]

Why is it that dvc members rent their points for an average of $9.75 to $10.00? If people want to rent dvc accommodations, wouldn't dvc members want to get the most value for their points?

There are even some postings by people who will pay $8 to $9 per point!!!!

I think the only reason dvc owners agree to $10 is because other owners have already set that precedent.

I see that BCV and BWV owners tend to ask for $12 a point. Others seem to go way lower, including $9.50 per point.

Wouldn't it make sense to sort of "fix" a price (among the members of course) so that all dvc members benefit. After all, those renting the points will still get a great value. I know you could never actually fix the price, but if dvc members started charging what those points are actually worth, then the memberships really do hold a lot of value.

What do you all think?

I think it would be very hard to set a price.

I know if I wanted something badly enough and I had to pay more to get it I proably would.

On the flip side if someone wanted to rent from me and they were willing to pay more then the going rate, I would be crazy not to accept ther offer.

My 2 cents anyway.

 

[Laurajean1014]

Anyone should ask whatever price they want. It's theirs to share, use or otherwise. If we all mind our own business, life would be easy!