Max $$ for Point rental

[dpuck1998]

What seems to be the high end for renting points right now? I am sort of renting some of my points and can name my price. What is about the highest I can reasonably ask for them?

 

[dianeschlicht]

Okay, so how do you "sort of" rent your points?

 

[dpuck1998]

It has to do with being a "company" trip and an expense account

 

[rocketriter]

$10 is common, and many folks pull a bit more.

 

[JimMIA]

It has to do with being a "company" trip and an expense account

In that case, I'd take a cautious approach. If your company has any decent auditors, they will certainly look carefully at any self-dealing expense item.

Personally, I'd avoid that situation altogether, but if you want to do it, there are several legitimate ways to price this.

The safest path would be to price the hotel accommodations you would get otherwise for the same trip and take that as reimbursement. That would probably be higher than the cost of renting points if you stay onsite, although if it's for a conference they may have some special pricing. In any event, it would be hard to criticize if you chose to get better accommodations for the same expense.

Another way would be to call CRO and see what the best rate is for the DVC accommodations you are using -- but I think that will be much more than you would ordinarily pay for a hotel for the same trip...which would be a questionable expense IMHO.

Another would be to go to eBay and price a points rental for the same resort in the same time period. That would probably be the ceiling of the rental point prices, but I wouldn't use it if it were more than you'd ordinarily pay for a hotel.

 

[dpuck1998]

Let me expound. The company belongs to my inlaws, they prefer to expense the trip so "auditors" are not a concern. I'm just curious if what we could charge that is not to high. They will just cut us a check for the amount and I'll take care of all the reservations, etc.

 

[Chuck S]

Let me expound. The company belongs to my inlaws, they prefer to expense the trip so "auditors" are not a concern. I'm just curious if what we could charge that is not to high. They will just cut us a check for the amount and I'll take care of all the reservations, etc.

That being the case, I would stick with $10 per point. That way, on the off chance they are audited for expenses by the IRS, you can show them via the DIS that $10 appears to be the current avarage per point for a rental. Unless they are traveling during a peak week (Christmas, Spring Break, etc.)

 

[DaddyBrady]

That being the case, I would stick with $10 per point. That way, on the off chance they are audited for expenses by the IRS, you can show them via the DIS that $10 appears to be the current avarage per point for a rental. Unless they are traveling during a peak week (Christmas, Spring Break, etc.)

So I have a question that is completely divergent from the OP. Why would the cost per point vary around a peak time period since the number of points required for a reservation is already higher? Seems like the cost per point should be pretty constant, but I'm still trying to wrap my head around this whole idea, so there could be things I'm not considering.

 

[FreeTime]

I think that you can get more per point during peak demand times. Although it cost more points, you should be able to charge more overall based on demand.

 

[Johnnie Fedora]

Base your rental rate on a "percentage" off rack rate. 40-50% off usually is more than $10/point especially for S-Th stays.

 

[Blue&Gold]

What is about the highest I can reasonably ask for them?

One way to find out is to charge more than what others are charging, and see if anyone bites...

 

[dpuck1998]

One way to find out is to charge more than what others are charging, and see if anyone bites...

I already have a buyer....I just have to decide what to charge them. I know I have been very confusing, but its an "odd" situation. I can charge them whatever I want, but I want to keep it in a reasonable range.

 

[dizplanner]

While $10 is common, $11 or $12 a point is still very typical. You can probably go up to $15 a point and be in the range that people get for points, although not on Dis. I probably won't go higher than $15.

 

[crisi]

Let me expound. The company belongs to my inlaws, they prefer to expense the trip so "auditors" are not a concern. I'm just curious if what we could charge that is not to high. They will just cut us a check for the amount and I'll take care of all the reservations, etc.

There are still the auditors that work for the IRS. I'd be very careful.

 

[DebbieB]

I would take the rack rate, maybe 25% off. If you have to prove the charge, just screen print the rate page from disneyworld.com. If you get into a "per point" charge, that would be hard to prove to the IRS.

 

[crisi]

You may also want to remember that as a business transaction your in-laws will need to keep records, which can lead the IRS back to you for the taxes you owe on the profit. Probably a low risk thing, but it happens that IRS audits of a business trigger IRS audits for others.

 

[dpuck1998]

If they get audited by the IRS they have a lot more problems than this issue

 

[salmoneous]

I would take the rack rate, maybe 25% off. If you have to prove the charge, just screen print the rate page from disneyworld.com.

ITA, though I don't know if you have to put in the 25% discount. Using the rack rate is much "cleaner" from a business accounting standpoint, and probably gives you a higher price.

 

[crisi]

If they get audited by the IRS they have a lot more problems than this issue

If that isn't a joke, stay FAR away from this transaction. If there is any CHANCE your in-laws are engaging in tax fraud, you do not want to be an accessory.

 

[dpuck1998]

From a classic 80's movie..."Light'en up Francis"