Issue with DVC Owners...

[disneynutz]

That being said, I do not rent, I don't want the hassle, and I'd rather give points away if friends or family can use them.

Whatever price you set for your points, you as the owners always have the right to say "No." if someone offers you a price you personally consider too low. While there is a certain amount of price setting by the "market", ultimately it is up to the owner and renter to reach an agreement that satisfies both of them.

Well said, my FRIEND Chuck, who is like FAMILY to me. As a fellow TEXAN, I wish you a HASSLE free day.

 

[Mamiamjo]

I have rented points from an owner (before I became an owner) and have rented out points when I bought in (had some points that expired in a few months and we couldn't use them).
I also own another timeshare that I have rented out a few times, when we weren't able to use them.
btw,All of these transactions went off without any type of problem for me or for the renter.

As someone already stated, the market will determine the price. The more people that rent out their weeks (greater supply), the more competition there is (and usually) the lower the price.

If people don't mind paying $795/ night for a 2Bedroom, they might as well rent from Disney direct (less risk).

Individuals renting out their timeshares will probably never get full retail value for their weeks, but doubling your MFs is not a bad thing either

 

[crisi]

I've been lurking on this thread since this morning, it's a little unnerving like driving past a car wreck, you don't want to look but you do anyway. I have a quick question in regards to "the risk factor" that was brought up. Lets say you do rent out your points and the person who you rent to trashes the room, to what extent are you responsible for their actions? I'm new to this whole DVC thing I am buying resale and barely out of ROFR and haven't closed yet so as you can probably imagine at this time I have no intention to rent out my points but as was said earlier, never say never.

Its a risk - you are responsible for your 'guests' in the room staying on your points. That said, I haven't heard of it happening with any more frequency than the "scam risk" to renters. The bigger risk to owners is that the rental won't complete - that you'll ask for half up front and wait three weeks and never get the check - then need to start the process over. Or ask for the other half at 60 days and not ever have it sent - with the renter pleading "one more week" until your points are going into holding. Sometimes you never even get that far. You may a few "availability calls" for a renter, and then have them say "we decided to stay at the All Stars."

A good rule is to never rent borrowed points and to try and rent so completion of the trip is within your banking window. And get all payment 60 days from the trip and be firm.

 

[JimMIA]

Sorry if this topic--striked a nerve specially to the person who place the first reply. I guess even if this is a board (forum) some views apparently cant be posted!!! My post clearly quotes at the end that if someone had a dif. view to please teach me to understand it!!!! Not make me feel as if I should never post my ? and views

When you start a thread to invite comment on a subject, you have to be prepared for views that differ from yours.

I didn't see anything at all in Post #2 which was even remotely offensive. They basically just said that people who sell for lower prices do so for their own reasons, and they really don't care what you think of it. They're just stating facts, not attacking you.

I don't rent my points, and one of the reasons I probably never will is the low price/return for the amount of effort involved. So I agree the price is too low -- but it doesn't really matter what I think if someone is willing to rent for a low price.

 

[marynvince]

Mermaidlove -

Free Markets Rule!

If you don't like how free markets work perhaps you could consider buying a timeshare in Cuba.

BTW - I'm not a lawyer (or an economist) but in business circles an attempt to get sellers to agree on a price would be considered collusion and would be illegal

col·lu·sion
–noun 1. a secret agreement, esp. for fraudulent or treacherous purposes; conspiracy: Some of his employees were acting in collusion to rob him.
2. Law. a secret understanding between two or more persons to gain something illegally, to defraud another of his or her rights, or to appear as adversaries though in agreement: collusion of husband and wife to obtain a divorce.

If we all agree openly that the minimum we will accept for our points is $X, that would then be the market rate. There is no collusion, we are not defrauding anyone. Quite often in the marketplace prices are set by suppliers and no sellers are permitted to sell for less then that set price.

If we all agree to sell at $12 per point, and stick to it, renters will still buy all we have to offer. They will still save money vs. cash through Disney and we will maintain the value of our investment while increasing resale values as well.

Who's with me?

 

[RobDoc]

col·lu·sion
–noun 1. a secret agreement, esp. for fraudulent or treacherous purposes; conspiracy: Some of his employees were acting in collusion to rob him.
2. Law. a secret understanding between two or more persons to gain something illegally, to defraud another of his or her rights, or to appear as adversaries though in agreement: collusion of husband and wife to obtain a divorce.

If we all agree openly that the minimum we will accept for our points is $X, that would then be the market rate. There is no collusion, we are not defrauding anyone. Quite often in the marketplace prices are set by suppliers and no sellers are permitted to sell for less then that set price.

If we all agree to sell at $12 per point, and stick to it, renters will still buy all we have to offer. They will still save money vs. cash through Disney and we will maintain the value of our investment while increasing resale values as well.

Who's with me?

Well, since you don't see any possible relationship to collusion, then how about Price Fixing?


From Wikipedia, the free encyclopedia


Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilize prices. The principal feature is any agreement on price, whether express or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging.

Price fixing requires a conspiracy between two or more sellers; the purpose is to coordinate pricing for mutual benefit at the expense of buyers. Sellers might agree to sell at a common target price; set a common "minimum" price; buy the product from a supplier at a specified "maximum" price; adhere to a price book or list price; engage in cooperative price advertising; standardize financial credit terms offered to purchasers; use uniform trade-in allowances; limit discounts; discontinue a free service or fix the price of one component of an overall service; adhere uniformly to previously-announced prices and terms of sale; establish uniform costs and markups; impose mandatory surcharges; purposefully reduce output or sales in order to charge higher prices; or purposefully share or "pool" markets, territories, or customers.

Generally, price fixing is illegal, but it may nevertheless be tolerated or even sanctioned by some governments at various times, particularly among those whose countries are developing economies. See also Collusion.

In neo-classical economics, price fixing is inefficient. The anti-competitive agreement by producers to fix prices above the market price transfers some of the consumer surplus to those producers and also results in a deadweight loss.

In the United States, price fixing can be prosecuted as a criminal felony offense under section 1 of the Sherman Antitrust Act. [1] In Canada, it is an indictable criminal offence under section 45 of the Competition Act. Bid rigging is considered a form of price fixing and is illegal in both the United States (s.1 Sherman Act) and Canada (s.47 Competition Act). In the United States, agreements to fix, raise, lower, stabilize, or otherwise set a price are illegal per se.[2] It does not matter if the price agreed upon is reasonable or for a good or altruistic cause; or if the agreement is explicit and formal or unspoken and tacit. In the United States, price-fixing also includes agreements to hold prices the same, discount prices (even if based on financial need or income), set credit terms, agree on a price schedule or scale, adopt a common formula to figure prices, banning price advertising, or agreeing to adhere to prices that one announces. [3] Although price fixing usually means sellers agreeing on price, it can also include agreements among buyers to fix the price at which they will buy products.





Price Fixing is "often " illegal and is definitely not allowed on the DIS.

 

[tomandrobin]

I can tell you that when I have rented points, none of them have ever been less then $12 per point. There are so many out there that want to rent, I don't need to negotiate. I don't deal with bargain hunters. If I have a post for rent and someone responds they are interested, but only want to pay $10 per point. I don't even respond to them. I won't respond to a responder who posts on every rental ad on the page.

To the OP, rent your points at a price you feel is fair. I think you will find plenty of happy renters at $12-$16 per point.....I have!

 

[Mamiamjo]

Well, since you don't see any possible relationship to collusion, then how about Price Fixing?



Price Fixing is "often " illegal and is definitely not allowed on the DIS.

I believe that you are correct DOC!

 

[MERMAIDLOVE]

Along the same lines, I am surprised that people that rent charge the same as the transfer. Truth is, as you stated, transfering points is a lot less liability on you and even the person receiving doesn't have to depend on you. I think transfers should be in the $8-10 range and renting should be in the 11-13 range. I don't see enough benefit in renting points to a stranger and would rather give them away or rent them to a friend for a great deal.

There are too many posts about renters that are jumping in and not understanding. It seems that it is a pretty time consuming process and even if the rental goes off, there are a number of people that have to spend hours with their rentees explaining it, answering questions, reassuring, etc. If I compare that time to my hourly rate at work, I dont' see $10 recouping my investment, MF's and time spent.....JMO

I agree 100%---transfer is the best option and should be honored at a fair price since that is a true owner who has already paid his/her way into Disney and simply has ran out of points or doesnt have enough points to complete his/her vacation.

 

[MERMAIDLOVE]

You want to state your view, please allow others to do the same. Not everyone will agree or disagree with you, but you opened the discussion up and will surely not see everyone sharing your same view. No one intends anything personally, just their opinions. Share the Love!!

your right, Im sorry

 

[MERMAIDLOVE]

I find this whole thread confusing from the OP's point of view. First the OP comes on here complaining the rental cost is to low. Then comes back and says its basically not worth the risk or time, than the OP changes their mind again and will wait a few days or weeks depending on response to this thread. Or are you just waiting for a renter to pay you more so it will be worth your time and effort?

If your really not interested in renting your points for profit why all the fuss?

I appologize if my staements have confused you or anyone, will try no to in the future!!! Have a Happy Easter

 

[Dean]

Heck, if you bought DVC to rent and make a hefty profit, than you must accept the market forces that set the price...

MG

Absolutely correct. But it's generally not so much market forces as ignorance, poor planning or situations caused by short notice circumstances. The market forces will bring the higher prices in all but the short notice circumstances, at least to date.

 

[MERMAIDLOVE]

I've been lurking on this thread since this morning, it's a little unnerving like driving past a car wreck, you don't want to look but you do anyway. I have a quick question in regards to "the risk factor" that was brought up. Lets say you do rent out your points and the person who you rent to trashes the room, to what extent are you responsible for their actions? I'm new to this whole DVC thing I am buying resale and barely out of ROFR and haven't closed yet so as you can probably imagine at this time I have no intention to rent out my points but as was said earlier, never say never.

lol, love your post --I cant answer your ?, but that is my fear--I keep imagining Disney revoking my membership and banning me for life, lol

 

[MERMAIDLOVE]

There are a lot of reasons rental prices vary. For instance, I bought at $51 per point, OKW dues are less than $5pp so if I rented at $10, I'd be OK with that. If I had points expiring, even $8 would be OK.

That being said, I do not rent, I don't want the hassle, and I'd rather give points away if friends or family can use them.

Whatever price you set for your points, you as the owners always have the right to say "No." if someone offers you a price you personally consider too low. While there is a certain amount of price setting by the "market", ultimately it is up to the owner and renter to reach an agreement that satisfies both of them.

Thank you Chuck your responses are always so very helpful

 

[MERMAIDLOVE]

Mermaidlove -

Free Markets Rule!

If you don't like how free markets work perhaps you could consider buying a timeshare in Cuba.

BTW - I'm not a lawyer (or an economist) but in business circles an attempt to get sellers to agree on a price would be considered collusion and would be illegal

Timeshare in Cuba, Sounds awesome--I will definitely consider it I can assure you I'm 100% sincere just let me know when they go on the market

 

[MERMAIDLOVE]

If points were "worth" $12 a point, then people could get $12 per point. If no one is biting on $12 a point, it's bc no one wants to pay it. I think it's "worth" it, but I'm an owner, LOL. I think they are worth $80 a point

Love it!!! lol--love your post---I agree with you, but maybe not to much I may confuse some people on the board! But it is a Great answer, Perhaps maybe that is why I brain just keeps thinking about these scenarios of people wrecking rooms maybe I love them so much I really dont want to rent them and intern makes me over estimating their value point value!!!

 

[Average Joe]

After reading all of the posts I am not sure what to do. I have 114 points remaining with the use year March 2008. I am not planning another trip right now and was thinking of transfering the points to another member, but according to the rules you can not charge for member point transfers.

As for renting to a nonmember I dont think it is for me.

I guess I can bank the points.

 

[dcamdad]

I appologize if my staements have confused you or anyone, will try no to in the future!!! Have a Happy Easter

It's all good. Read your initial reply but found it edited before I could respond. Go get some sleep, relax and some Easter fun with your family.

 

[Dean]

After reading all of the posts I am not sure what to do. I have 114 points remaining with the use year March 2008. I am not planning another trip right now and was thinking of transfering the points to another member, but according to the rules you can not charge for member point transfers.

As for renting to a nonmember I dont think it is for me.

I guess I can bank the points.

If you can bank them and are not comfortable with renting then that is your best option. Or you could treat someone to a trip if you wanted.

 

[dcamdad]

After reading all of the posts I am not sure what to do. I have 114 points remaining with the use year March 2008. I am not planning another trip right now and was thinking of transfering the points to another member, but according to the rules you can not charge for member point transfers.

As for renting to a nonmember I dont think it is for me.

I guess I can bank the points.

If they are March 2008 pts you just received them and THEY are certainly able to be banked into 2009.