Rental Price Inflaction since 2003

[NewDCLGuy]

Somebody recently bumped a thread that was more than 7 years old. I found this post from 2003 interesting,

I started a thread on the rent board that clearly shows my points are for rent at $11.00. Anything less than that is too low and I'll do what I can to increase the rental rate from the common $10.00 per point.

I don't want to reopen the discussion in that thread. But it sure doesn't look like much "progress" has been made towards increasing the average rental price.

 

[dclfun]

I don't rent my points but if I did, I'd not let them go for $10.00 each. Sorry, but I think it's way too low esp. comparing what someone would pay with cash for the same resort. They are also getting our perks- free internet, some dining discounts, etc. They are losing out on Mousekeeping but that's about it and that isn't enough to make up the difference. I figure a value season S-Th at OKW/SSR is 8 points, other resorts at 12, so $80-$120 per night when Disney charges that for a value resort? Of course it's all based on supply/demand and there are obviously more renters either needing to rent or willing to give their points at a real bargain. Not me.---Kathy

 

[Chuck S]

Price is negotiable. I also agree that $10 is a bargain, but you also have some owners in the current economy that HAVE to move their points at almost any price. And for many people, like myself, that have owned for many years, I would still make a little $ at $8 per point...I'd never let them go for that, but I don't rent I give them to friends and family instead when I have extra points.

 

[Sammie]

I don't rent my points but if I did, I'd not let them go for $10.00 each. Sorry, but I think it's way too low esp. comparing what someone would pay with cash for the same resort. They are also getting our perks- free internet, some dining discounts, etc. They are losing out on Mousekeeping but that's about it and that isn't enough to make up the difference. I figure a value season S-Th at OKW/SSR is 8 points, other resorts at 12, so $80-$120 per night when Disney charges that for a value resort? Of course it's all based on supply/demand and there are obviously more renters either needing to rent or willing to give their points at a real bargain. Not me.---Kathy

If the member does what they are suppose to do and notify MS when booking that this is rental, they are not suppose to get the free perks.

But I agree about the cost, I would give mine to a friend in need before renting them too cheaply.

 

[dmoore22]

I also have never rented points. I'm in the mindset that I will never have enough points. Like the old MasterCard commercial - - DVC Points "Priceless!"

 

[tjkraz]

Price is negotiable. I also agree that $10 is a bargain, but you also have some owners in the current economy that HAVE to move their points at almost any price. And for many people, like myself, that have owned for many years, I would still make a little $ at $8 per point...I'd never let them go for that, but I don't rent I give them to friends and family instead when I have extra points.

I don't even know if we can even blame the economy. Seems there are always people willing to undercut the competition by a dollar or to just to turn a quicker deal.

As dues rise one would think that owners would want more in return. But we'll see how long it takes members to really put that together. Reality is that some people won't bat an eye at sacrificing $1-2 per point just to accelerate the process.

When we first considered buying, I remember putting together a spreadsheet which assumed that rental prices would rise $1 per point about every 4-5 years. That was back in 2002-03. Not sure the theory has really panned out since we rented for $10 each back then and that price still seems relatively easy to obtain today.

 

[DebbieB]

It's hard to compete when Disney is offering 40% discounts or promos like free dining. Then on top of free dining, they sometimes upgrade people from the values to OKW or SSR. People hear that, they figure they will take their chances.

 

[Brian Noble]

But we'll see how long it takes members to really put that together.

Evidently, at least seven years.

 

[CarolAnnC]

I can't figure out why the rental prices have not risen considerably, either. Certainly CRO may offer 40% off, but the price of a moderate, for example, has more than doubled since I last rented one years ago.

I think $12 per point is more widespread than it used to be, but certainly I would think the average rate should be at least $15 per point by now.

Renter/Owners, you need to unite! LOL!

 

[zev]

You still have to consider the old supply and demand aspect. More total points out in the world with SSR, BLT etc. and that translates into more rental points being available. I would not be suprised to see rental rates hold steady for a good bit of time to come, even more so with the economy, deals, etc.

 

[Corwin]

You'd think that Disney's recent offer to rent points to owners for $15/point (up to 24 points) would be an indication as to the true value of the points.

I also think that $10/point is too low.

 

[Ericandjenng]

Earlier this year, I rented my points for $10 each...I did it for a couple of reasons.

#1. I was a newbie--even though I had lurked on here for several years (my bff is/was very active), I had never joined the DISboards until I wanted to rent my points.

#2. I figured if it worked well this time (it did!) I would increase what I was asking as I gained more references in the future if I continued to rent them out from time to time.

#3. I checked the rent/transfer board and in January, it seemed that $10 was kind of the middle of the road and a pretty standard rate. I did see some as low as $7-8 and I think the high was $12...but I don't remember exactly.

I did not want to undervalue the DVC and the owners by renting too low but I also wanted/needed this year to rent my points. At $10/point, it took about 24 hours to rent around 200 points to two different people.

I do think this new thing with DVC offering the one-time additional purchase (read "rental") of points will help drive the price point higher.

 

[SoCalKDG]

Supply and demand play a big part as well. Own at a resort with lots of people renting points don't expect to get much more than $10. Rent someplace that everyone is looking for then you will get $12.

 

[tjkraz]

You'd think that Disney's recent offer to rent points to owners for $15/point (up to 24 points) would be an indication as to the true value of the points.

Maybe, maybe not. dvcrequest.com has been coordinating rentals for (I believe) $13-14 per point for a couple of years now. That hasn't had any noteworthy positive impact on rental prices.

Disney's process is much simpler than any rental. Those renting should expect to pay less than Disney's own prices since a rental requires more time and effort to arrange and there are few guarantees for either party.

Another poster mentioned supply and demand, and it seems that Disney renting can only hurt demand. Whatever volume of points members end up renting from Disney will draw some business away from independent renters.

 

[5forDiz]

jmho because I'm certainly not an expert but I think rental price per point will not increase all that much over what we see now even with Disney offering members the option of 24 points per year at $15 and also with Daddio's rentals at $13 per; they can & will get $15 and $13 because they are "known" (for lack of better description) and because of the ease in doing rental transaction with them. If I needed 24 pts or less I'd do it through MS and I can see dealing with daddio would make paying $13 worth it; individual members who try to rent at or near these prices would maybe find it difficult because it doesn't offer the same perceived peace of mind, although there are many trustworthy members who rent out their points.

 

[Anjelica]

Price is negotiable. I also agree that $10 is a bargain, but you also have some owners in the current economy that HAVE to move their points at almost any price. And for many people, like myself, that have owned for many years, I would still make a little $ at $8 per point...I'd never let them go for that, but I don't rent I give them to friends and family instead when I have extra points.

Wanna adopt me as a long lost sister...

 

[BEASLYBOO]

I'm always in borrow mode and I have purchased points several times from DVC members, I've never paid more than $10 per point. I don't try to negotiate I always pay what the member asks for. From conversations with these owners, it isn't about making a profit, it's more about being able to pay your dues and making sure your points just odn't go to waste. I agree that most owners aren't in the business of renting so $10 seems to be the fair price, as most sell for $10. I can see that in situations where some owners have large inventories and time is running out, you would lessen the amount per point just to get a quick deal. I've been short a few times and I would deal straight with DVC at $15 per point in future.

 

[nappingbeauty]

I am sorry.... what is the 24 points a year for 15? Did I miss something?

Laura
BWV owner

 

[Ericandjenng]

I am sorry.... what is the 24 points a year for 15? Did I miss something?

Laura
BWV owner

DVC is starting a new thing that you can "buy" up to 24 ponts @ $15/point to finish out a reservation when you are short. It's a one-time use. It's on the DVCmember.com site

 

[nappingbeauty]

Thank you Jenn!