(Newbie) questions about leasing our DVC points

[DisFamily_Ed]

We are new to renting out DVC points (but have rented points ourselves a few times in the past through companies such as David’s Vacation Club Rentals).

We would like to rent points & have several newbie questions:

• If we decide to lease DVC points through a third-party intermediary/realtor, which company pays out at the highest per-point rate? Any recommendations regarding which company to use (or avoid)?
• Do any of these companies pay a premium for points from the more costly/higher-demand home resorts (I'm think about resorts such as Grand Californian or Beach Club)? -OR- is the only real way to earn a premium (and recoup the extra cost we paid for higher-demand home resort points) is to rent them ourselves using the boards?
• Is there an advantage to booking a specific high-demand week at the 11 month mark and then offering that specific week for rent? Or is this just not usually worth the extra effort? If it is, would you post the opportunity on the boards or would you recommend leasing through a third-party?
• If we lease/transfer points ourselves, is there anywhere else we should post the opportunity (in addition to here!)? Ebay?

I know that's a bunch of questions, but if you have insights / experience regarding any of the above items your guidance would be greatly appreciated!

Our apologies if these questions are answered elsewhere on the boards and the answers are still current. If so, we would be very thankful if you'd let us know and/or point us in the right direction.

Many thanks!

Ed & family

 

[crvetter]

If we decide to lease DVC points through a third-party intermediary/realtor, which company pays out at the highest per-point rate? Any recommendations regarding which company to use (or avoid)?

So David's pays owners 13.50 for non premium resorts (reservations less than 7 months or OKW/SSR/VB/HHI at 7-11 months) or 14.5 for premium resorts (all the others between 7-11 months). They charge 18 for premium or 17 for non-premium to the renter, the spread is their income

There is one other big broker that pays 15 for premium (means the same) and 14 for non-premium (means the same) but they charge 20 per point for premium and 18 per point for non-premium to the renter. I would say either can rent points easily as each has a backlog of requests for premium resorts usually.

Do any of these companies pay a premium for points from the more costly/higher-demand home resorts (I'm think about resorts such as Grand Californian or Beach Club)? -OR- is the only real way to earn a premium (and recoup the extra cost we paid for higher-demand home resort points) is to rent them ourselves using the boards?

See my comment above. Though if you own BCV/BWV/VGC/VGF you most certainly will find that renting on your own may bring in more than what the brokers will pay you. It is clear the broker prices are broken for some resorts though one of them is evidently moving to where the price should really be.

Is there an advantage to booking a specific high-demand week at the 11 month mark and then offering that specific week for rent? Or is this just not usually worth the extra effort? If it is, would you post the opportunity on the boards or would you recommend leasing through a third-party?

Usually this is done by people who don't know if they want to rent yet but grab it just in case. I'm not sure it offers much of an advantage, save for a few places like VGF or CCV where grabbing a studio at different points of the year can be difficult.

If we lease/transfer points ourselves, is there anywhere else we should post the opportunity (in addition to here!)? Ebay?

Honestly the DIS has a great Rental board. I would look there and read all the stickies if interested on doing this yourself.

 

[Marionnette]

We are new to renting out DVC points (but have rented points ourselves a few times in the past through companies such as David’s Vacation Club Rentals).

We would like to rent points & have several newbie questions:

• If we decide to lease DVC points through a third-party intermediary/realtor, which company pays out at the highest per-point rate? Any recommendations regarding which company to use (or avoid)?

They all pay pretty much the same rate within 50¢ of each other.

• Do any of these companies pay a premium for points from the more costly/higher-demand home resorts (I'm think about resorts such as Grand Californian or Beach Club)? -OR- is the only real way to earn a premium (and recoup the extra cost we paid for higher-demand home resort points) is to rent them ourselves using the boards?

They all pay a premium for certain resorts (VGF, BLT, PVB, BCV, BWV, RIV and AKV). It’s not much of a premium. About $1 per point more during the home booking period.

• Is there an advantage to booking a specific high-demand week at the 11 month mark and then offering that specific week for rent? Or is this just not usually worth the extra effort? If it is, would you post the opportunity on the boards or would you recommend leasing through a third-party?

What you’re talking about is referred to ask a spec reservation. They cannot be posted on the Rent/Trade board unless you are 30 days or less before arrival. If the reservation doesn’t rent out, the points go into holding. You can purchase a disboards plan to permit you to post a reservation before that 30-day mark but that will eat into your cut. Brokers do not pay a premium for spec reservations.

• If we lease/transfer points ourselves, is there anywhere else we should post the opportunity (in addition to here!)? Ebay?

I know that's a bunch of questions, but if you have insights / experience regarding any of the above items your guidance would be greatly appreciated!

Our apologies if these questions are answered elsewhere on the boards and the answers are still current. If so, we would be very thankful if you'd let us know and/or point us in the right direction.

Many thanks!

Ed & family

Personally, I stay away from eBay. Too many regulations and chances for getting scammed. PayPal always sides with the buyer if there are disputes. There are other forums that permit DVC rentals as well as Facebook groups. None that I can mention here.

 

[DisFamily_Ed]

So David's pays owners 13.50 for non premium resorts (reservations less than 7 months or OKW/SSR/VB/HHI at 7-11 months) or 14.5 for premium resorts (all the others between 7-11 months). They charge 18 for premium or 17 for non-premium to the renter, the spread is their income

There is one other big broker that pays 15 for premium (means the same) and 14 for non-premium (means the same) but they charge 20 per point for premium and 18 per point for non-premium to the renter. I would say either can rent points easily as each has a backlog of requests for premium resorts usually.

See my comment above. Though if you own BCV/BWV/VGC/VGF you most certainly will find that renting on your own may bring in more than what the brokers will pay you. It is clear the broker prices are broken for some resorts though one of them is evidently moving to where the price should really be.

Usually this is done by people who don't know if they want to rent yet but grab it just in case. I'm not sure it offers much of an advantage, save for a few places like VGF or CCV where grabbing a studio at different points of the year can be difficult.

Honestly the DIS has a great Rental board. I would look there and read all the stickies if interested on doing this yourself.

Thank you so much for you help - great info!

 

[DisFamily_Ed]

They all pay pretty much the same rate within 50¢ of each other.

They all pay a premium for certain resorts (VGF, BLT, PVB, BCV, BWV, RIV and AKV). It’s not much of a premium. About $1 per point more during the home booking period.

What you’re talking about is referred to ask a spec reservation. They cannot be posted on the Rent/Trade board unless you are 30 days or less before arrival. If the reservation doesn’t rent out, the points go into holding. You can purchase a disboards plan to permit you to post a reservation before that 30-day mark but that will eat into your cut. Brokers do not pay a premium for spec reservations.

Personally, I stay away from eBay. Too many regulations and chances for getting scammed. PayPal always sides with the buyer if there are disputes. There are other forums that permit DVC rentals as well as Facebook groups. None that I can mention here.

Thank you for helping us to sort this out!

One more quick question - if not PayPal, do you recommend another service or just use a check / bank wire?

Thanks again!

 

[Marionnette]

Thank you for helping us to sort this out!

One more quick question - if not PayPal, do you recommend another service or just use a check / bank wire?

Thanks again!

I see a lot of owners who accept Venmo and Zelle. I know of at least one owner, who rents a lot of spec reservations, who will only take personal checks.

 

[DisFamily_Ed]

Thx!

 

[KAT4DISNEY]

Thank you for helping us to sort this out!

One more quick question - if not PayPal, do you recommend another service or just use a check / bank wire?

Thanks again!

I don't rent too often but when I do I ask for a personal check assuming it is well in advance of the reservation.

 

[DisFamily_Ed]

One more newbie question about renting our DVC points... For background, we are new to renting out DVC points & are trying to sort out the smartest way(s) to move ahead...

--> So I doubt this is much of a risk, but is there a financial liability on the part of the DVC member/lessor if the lessee runs up credit card charges during their stay (or damages a room, etc.) and leaves without settling their bill?

Relatedly... Is there a recommended way to book the stay or paper the deal to appropriately protect the DVC member who is leasing the points? If the member is in fact ultimately responsible for any unpaid room charges made during the stay, could the member ask Disney to "turn off" the ability for the lessee to make charges to the room? Are pure point transfers safer? Or, is this issue basically moot because the person who checks-in at the resort is solely responsible for charges they incur during their stay?

Again, I have to believe that issues in this area would be incredibly rare, but still worth thinking through...

Thx,

Ed

 

[cruisin5]

The owner would also be responsible for room damages along with the unpaid charges. There is no way the owner can prevent the renter from making room charges.

Transferring is safer, but each owner is allowed one transfer in OR out per UY and the market for transfers isn't as abundant as those looking for a bargain DVC stay.

 

[DisFamily_Ed]

Thx!

 

[DisFamily_Ed]

Hi Disboard / DVC vetrans -

Per the DISboard rules for “Reservation for Rent”, reservations of exactly seven (7) nights with a Friday, Saturday or Sunday arrival are prohibited. I'm still learning. Anyone know why? Are there other similar restrictions on the reservations? Are 6 night or 8 night reservations okay for posting, but just not 7 night?

Also, I am still learning the etiquette for these boards... please let me know if there is a better place where I should post this type of question / or if there is a way to private message a moderator directly. Still learning

Ed

 

[_auroraborealis_]

I didn't write the rule, but traditionally those have had high likelihood of being RCI trades into Disney. They cannot be rented per Disney's rules, and not allowing them to be listed protects the unwary renter.

Per the DISboard rules for “Reservation for Rent”, reservations of exactly seven (7) nights with a Friday, Saturday or Sunday arrival are prohibited. I'm still learning. Anyone know why?

 

[Minniemoo15]

I listed my points with davids, but had a much faster response (and got a better price) by posting them on a Facebook group.

 

[DisFamily_Ed]

Ahhh. That makes sense. Thx!

 

[crvetter]

I didn't write the rule, but traditionally those have had high likelihood of being RCI trades into Disney. They cannot be rented per Disney's rules, and not allowing them to be listed protects the unwary renter.

For clarity you mean it’s to stop the person renting from renting out an RCI exchange? That definitely makes sense.

 

[Fred M]

Other things to consider with renting out your points. First, the amount you rent your points for is income for U.S. taxpayers. Many companies will be sending you a 1099. You (or your tax preparer) need to research how much of your maintenance fees, etc., you can deduct from that for income tax purposes. Second, you’ll be responsible for requesting Magical Express and potentially other packages that are linked through your DVC member account for the renter. Third, many companies pay you a certain percentage when the points are rented and the balance around 30-45 days before the guest checks in. A bit of a bummer if your points rent 11 months in advance.

 

[cvjw]

We use a point broker to rent out our points - just for the peace of mind in case something goes wrong. If the renter did damage the villa or leave unpaid charges, the broker would be able to help recoup the charges and you wouldn’t have to go it alone!

We have rented out 1500+ points so far with the same broker and have had a great experience every time.

 

[_auroraborealis_]

For clarity you mean it’s to stop the person renting from renting out an RCI exchange? That definitely makes sense.

Yes.

This is a guess, mind you, but it has been a problem elsewhere. If an unwary individual tries to check in for an RCI exchange and it was rented to them by the.eligible RCI user, Disney can refuse to check them in or give them the unit. It's awful when it happens to someone.

 

[crisi]

One more newbie question about renting our DVC points... For background, we are new to renting out DVC points & are trying to sort out the smartest way(s) to move ahead...

--> So I doubt this is much of a risk, but is there a financial liability on the part of the DVC member/lessor if the lessee runs up credit card charges during their stay (or damages a room, etc.) and leaves without settling their bill?

Relatedly... Is there a recommended way to book the stay or paper the deal to appropriately protect the DVC member who is leasing the points? If the member is in fact ultimately responsible for any unpaid room charges made during the stay, could the member ask Disney to "turn off" the ability for the lessee to make charges to the room? Are pure point transfers safer? Or, is this issue basically moot because the person who checks-in at the resort is solely responsible for charges they incur during their stay?

Again, I have to believe that issues in this area would be incredibly rare, but still worth thinking through...

Thx,

Ed

Some of this is why people use brokers. The broker takes on some of the risk regarding room damage or unpaid charges. They'll also deal with people who want to negotiate price (as long as your price is fair, don't), fend off the sob stories (some of which in the past have proven to be untrue) told to get better pricing, make sure you get paid and aren't stuck with a reservation and only half the income when someone bails, keep you from fielding questions on impossible to get rooms (can you get me a VAKL Value studio?), or unreasonable requests (can you move my reservation, that happens next month, by two weeks) They will handle all the contracts, all the payments, and all the communication.

Renting yourself is generally pretty good once you get the rental, but you have to kiss a lot of frogs to find it - a broker will do the kissing for you. And once in a while a renter is high maintenance - and not necessarily in a good way.