point rental prices....

[doubletrouble_vb]

Is it me or is there an imbalance in buyers and sellers on the rent/trade board. I did my first foray into that endeavor and was surprised at the speed and volume of the response to my points. From that I'd say the days of the $10 point may be limited ...except with so many points from SSR coming into the pot that may keep the price down.

Comments?

 

[DisneyBill]

I too just completed my first experience renting-out our DVC points. It is a nice option if you have points that you otherwise might not get any value from at all. However, there is little doubt that the true value of these would be closer to $15.00 p/point. Most renters only want Sun-Thursday and they get a heck of a low-priced vacation for the level of accommodation for the price they end up paying. Not to mention they avoid the 11.5% Florida hotel tax to boot.

 

[brandip22]

I agree, but I'd not want to be the first to ask for the more $ per point. Plus, I don't have any to sell right now.This is something I'll probably do in the next few years, though. I may even rent points from someone and would certainly be willing to pay more than $15 per point for most stays. I know that cash specials do come out, but you never know when those will pop up. I say, someone should try it and see.

 

[doubletrouble_vb]

And a heck of a savings it is! I just ran a compare on the two reservations I just made...one person saved $820 and the other $740. Or....oops should I say...experienced an "expense reduction".

 

[PamOKW]

There is one renter who seems to be firm on a $12 asking price. This may help move things up.

I also think the size of the reservation can be an influence. If you ask someone for $180 vs. $120 a night for a studio they may go along with that as a savings over rack rate. But, when you start to ask for $450 vs. $300 per night for a 2 bedroom, while they still are getting a savings off rack rate, they may become more apprehensive about sending that much money to a total stranger.

Eventually, the price will have to go up to make it worthwhile for the DVC member. Dues keep increasing and the price keeps increasing. Someone who is paying $95 per point (possibly with additional financing charges to consider) has a much higher breakeven for rentals than someone who purchased for around $60 per point.

 

[thechangingtable]

i am looking for 2 nights, a fri and sat at OKW in June. According to the points list, OKW is 24 points during that time period per night. If I bought points on the rent/trade board, it would be $240/night at $10.00 a point right?

I checked reservations and i could get both nights for $377 using cash.

Is there an advantage to buying the points on the rent/trade board and transferring them to my point account, or am I really getting a better deal paying cash. Not sure if there are any hidden costs with the cash. I get housekeeping with the cash one right?

christine

 

[tjkraz]

thechangingtable:

What you describe (weekends cheaper on cash) is often the case with DVC reservations--particularly if you can get discounted cash rates through Member Services or an AP rate. Booking for cash on the weekends can easily be cheaper.

If you are booking through CRO using an AP rate, you will have to pay all of the applicable taxes (around 11%) but you will get daily housekeeping. If you are booking at the 25% DVC member discount through Member Services, I believe (someone correct me if I'm wrong) that you get the same DVC housekeeping schedule.

 

[thechangingtable]

thank you for the info. I called CRO and DVC and i did get a better deal with CRO FL Resident Rate + tax and CRO came in a little cheaper even with the tax. The DVC discounted rate is also taxed. I see that you do have to do your homework though to make sure!

thanks for your help! christine

 

[dilettante]

I tried to rent out at $11/pt once. And waited. And waited. And waited. There were just too many folks letting their points go at $10. Gotta love the free market.

 

[DisneyBill]

Perhaps a good starting tactic to deploy in an attempt to move the market price to a more realistic position would be to ask say, $12.00 for Sun-Thur ressies, and $10.00 for Friday & Saturday. Just a thought.

 

[KANSAS]

am I correct, that the points, that go for $6.00-$9.00 per point, are very limited use? (cannot be transferred,hard to get a reservation with them, if you rent them)

It seems that good points, go for at least $10.00 per point and within 24 hours
I would have to think that with annual due incrases and DVC II at $95.00 PP on 05/04/2004
The Value of good DVC points will increase above $10.00 per point.
I

 

[Disney4ever4569]

I think that it will take a while to see a permanate price increase. Like previous posts state: too many people are renting their points for $10. You also have many new SSR members that are just joining and can't use their points this year. I even figured out myself when I bought: Why do the MB and get $5 when I can just take the points and rent them for $10. I think that the points would certainly rent for $12 a point, but until the supply of willing renters dries up a bit it won't happen for a while. One of the above posts stated something very interesting. That people rent our points because they save so much money and get great accomodations. Here's an idea: if more people outside of DVC knew that they could rent DVC members points and knew about the rent board, the supply of renters would increase double or triple and then the renters would be posting that they will pay $12. Free market can work both ways!

 

[pumpkinboy]

One way that folks are renting for higher than $10 a pt is to simply advertise points available, then PM or email a price of $10.50 or $11 or even $12 a pt.

I do think it is time that prices rose on the rental market, and I expect that some who rent out their points regularly will be leading the way. That being said, lower hassle transactions (e.g. straight transfer of lots of points) really should go for less than high hassle deals. Oh and if they are transferrable points that are good for ressies 11 months out, you should definately get a premium; points close to their expiration date should go for $10 or less.

 

[Disney4ever4569]

After all this discussion about renting points I figured I'd go on the rental board and check it out. It seems like there are so many people renting their points on that board. After looking around on that board you start to wonder what some of those people bought DVC for (to make money?).

 

[chips]

There should be a sliding scale for number of points rented. Transferred versus booking ressies. People renting points comment they rented 200 points in 36 hours. Many people are renting but the points rent very quickly.

People renting points ask for difficult ressies. Boardwalk standard view less than three months out. People ask for sun through thursday. Less than a 50 point rental should be at least 12 dollars a point. 100 plus transferred should be 10 dollars a point. Points with less than 3 months should rent for 10 dollars. Maybe less. Not all points are equal. Not all renting transaction are equal.

I have a summer rental property. I charge different per week rates based on number of weeks rented.

 

[Disney4ever4569]

Even though it does seem like the points are being rented quickly I'm just wondering if some DVC members are just trying to use DVC to make money. Example, I see someone almost every having 400, 500 (1 guy 1000) points for rent. For most people 400-500 would certainly be their entire alotment for the year. What about just going to Disney with them?

 

[spiceycat]

before what brought the point rental up for $8 (might have been $6) to $10 - was DVC saying that they are worth $10 - in the sale back - until DVC ups this number again - don't count on the rental rate being increase.

 

[pumpkinboy]

Some folks have more points than they would ordinarily use in a year, and rent out the "extra" to cover maintenence dues, airplane tickets, etc. And of course, in those years that they want a BWV GV for a week or two, or a BC at VB, well, they will have the points covered for weeknights and weekends, so no muss no fuss.

I of course, am plowing any extra funds into my 401k so I can retire early (yeah, right!), and paying dues in cash. I did do some weekend arbitrage tho; I got the weekend nights in cash with DVC discount, and rented out those points for a couple hundred more than I was gonna have to shell out. I probly should have banked those points, but...

 

[KANSAS]

i rented my points, to create cash, to then use on DCL/Eastern CARIBEEAN CRUISE IN SEPTEMBER,2003

 

[Nick@ VB+OKW]

We have been members for 5 years, and just rented(for the 1st time ever) 300 pts to pay for our 4 day cruise for 3 adults.

With points it would have been 462 pts to cruise. We saved 162 pts going this route.