More Rental Concerns

[drusba]

Just have to correct what Gary K.D posted as figures. First, the total number of "units" at BWV is about 120. Second, though I don't have the document with me right now and thus cannot get the exact number, the total number of points sold at BWV is actually approximately 4 million.

What you bought officially is an interest in a "unit." In the legal documents that is not a room (in fact, it could be anywhere from 1 to 8 rooms). The resort has 383 rooms (not 517) but that is irrelevant to the term "unit" for purpose of what you have a percentage of. Thus, any percentage expressed in your documents as one of a "unit" could actually be a percentage of 8 two-bedroom rooms.

Though I do not disagree with the right to rent, I do believe people have a legitimate point to make and should not be done away with by inaccurate figures. Though I doubt we are there yet, suppose we had just 50 owners that bought the maximum 2,000 points at the resort and rented them all by grabbing prime times at 11 months out. Those 50 owners would be in control of 100,000 points or 2.5% of all the points. And suppose those 50 all decided to focus on one particularly high demand week, say Presidents week. If they used all of their points for that week they would literally take every room in the resort as the total applicable to all rooms for President's Week is about 95,000

 

[Firefighter Mickey]

While that is an interesting example, it seems rather far-fetched, and I've not personally seen any indications that such a scenario is happening.

In addition, doing that would be somewhat self-defeating, as in order to rent that many accomodations, you would literally be flooding the rental market which would ultimately drive down the cost per point, probably to the point at which you would actually be losing money.

It does make me wonder why people seem to be getting so worried about such an unlikely concatination of events though. Must be a slow week.

 

[Tinker Bell]

Drusba --

That is exactly where I am coming from. The "rental" issue is unlikely to impact most members and particularly the ones that are flexible in their travel plans and like to come off-season. I am considering DVC membership and the only two weeks that I am likely to use regularly are Presidents' week and Easter week. These would be two very profitable weeks for renters (particularly Presidents week). I don't want to end up in a losing battle with renters to make use of my membership.

For me it is not so much an issue of whether or not renting should be allowed, but does DVC make sense for me given the risk that renters pose.

Tinker

 

[PamOKW]

Tinkerbell, even though I started this particular discussion I don't think it should be a make or break for purchasing DVC. It is more of a "what if" situation. I also think that DVC is monitoring most items of concern to members like just how many are putting more in a room and how many more, who is a potential rental agent, etc. Remember, it is the Walt Disney Company and if nothing else they know how to protect their interests. As MickeyFirefighter says, it is sort of a slow day, thought starter rather than any imminent problem.

 

[BillPA]

Well I don't see any problem with doing what you want with your points. They are your points. And I'm sure that all you wonderful folks are claiming the income at tax time. But that's a topic for another slow week.

Bill
OKW '93

 

[drusba]

I agree with PamOKW on that Tinker Bell; don't get overly concerned about the theorectical possibilities. I am actually on the side of the renters, but the point I was trying to make is that those expressing a contrary view weren't just being overly paranoid about something that can't possibly have any impact at all, as figures I saw earlier would suggest. The example I gave is not likely but is there to demonstrate that if you have enough people renting and reserving at 11 months out they can potentially have a real impact. Anyone actually in the business of renting would likely spread it out over many weeks of the year and not try to put all his eggs in one basket.

And to add to BillPA's point about income tax--you can ask the next question too: If they are in the business of renting at the resort are they paying the required 11% resort tax applicable to businesses that do so? We could have another two days of discussion on that one.

[This message was edited by drusba on 03-08-01 at 06:55 PM.]

 

[MN_DizNut]

As a non-member a person can call up the ressie line and reserve a room/unit at least 12 months out (at least for part of each year). I've never done this at a DVC resort, but I have at lots of others...

Jon

WDW '85 offsite
DL '85
DL '87
WDW '89 offsite
WL '97
WL '97 (again!)
WH '99
WL '99
AStSp '99 (YUCKY!!!)
DCL/Poly Jun/July '02

 

[RobDoc]

While reservations at other resorts are common more than 12 months in advance, none of the DVC resorts will accommdate those requests. All of the DVC's are listed as non-available on the CRO computers until DVC itself has released any availability for cash reservations- either by nature of the obvious trend towards availability at a resort during a specific time period or until DVC members have exchanged points for other programs within the 11 month priority.

 

[MN_DizNut]

Doc:

Technically, I believe that applies only to that percentage of rooms specifically set aside as DVC room. A percentage of all WDW resorts is always available to regular (ie: non-DVC member) guests.

Jon

WDW '85 offsite
DL '85
DL '87
WDW '89 offsite
WL '97
WL '97 (again!)
WH '99
WL '99
AStSp '99 (YUCKY!!!)
DCL/Poly Jun/July '02