Rental Rates/Concerns

[CarolMN]

Originally posted by mikesmom
I'm thinking we're not seeing the ones that are possibly going for more money. I see a lot that just say "sent you an email". They could possibly be doing transactions off the boards 'cause they don't want to get flack for renting higher.

The trend I've also noticed is folks asking for impossible-to-get ressies (first week of December, middle of the F&W fest) and getting responses of "I have points" from folks that have very little posting history here. They may be new SSR owners that don't realize that having points is not nearly the same as having ressies. Who knows where those transactions are going.

I agree. IMHO, it is very dangrous to conclude anything about prices from reading posts on the Rent/Trade board. Not nearly enough facts!

Best wishes -

 

[PamOKW]

I think the prime week availability and the "off the board" transactions are related. Some people make a reservation for a prime week and then hold on to it until their price is met. There's no need to rent a Christmas reservation to someone in February for $10 per point if you can hold onto it and get a better price closer to Christmas. Of course, you have to time it right.

 

[LisaSt]

This is the first time we have ever posted a price for points on the board we usually just discuss it via e mail and 12.00 a point is our going rate we have never had any questions or issues with this price. Mind you it is only recently thatr we have been renting out our points. Especially since we won't be able to use them for the next couple years and we are renting out the extra points to pay cash for our cruise. I am having a knee operation and have to do physio 3 days a week till the operation then after the operation I am off my feet for about 8 weeks then 3 days a week for physio again for 6 months and so on. So I will not be going on many vacations over the next 2 years. I won't even know when my operation is scheduled for till the 19th of this month. My surgeon works inthe best clinic in Canada and they are very busy it is a private clinic and they are not only open to the public after referral but they are under contract to various pro hockey teams. Also a number of NBA and MLB teams use them also all of Canada's national teams use them under contract so if one of the contrat players has a problem they get preference over the rest of us. I can live with that knowing that I am at the best place to go for the repair I need. So our points from now till 06 are being rented.

 

[msdis]

 

[disneygang]

It appears he states it is a preffered room in the beginning, and changes it to a standard.

I don't own, but I figure someone out there will think this is a deal for them.

 

[PamOKW]

$160 per night is a savings over what Disney is charging for the room. Pricing on E-Bay hasn't fallen into the "per point" category and I think allows for more equitable pricing.

When people are paying close to $100 per point and $4-$5 per point in maintenance, the rental price will have to go up if they are going to make any profit. I don't like to see people running DVC rental businesses but if rentals are going to be permitted, there's no reason people have to run it as a charity.

 

[disneyberry]

<font face="times" size="+0">I have to say that ITA with what Pam said.
Also, Ebay fees + income taxes will significantly reduce the rental profit.

Of course $155 is a good deal. It is certainly much cheaper than any of the recent AP rates for a hotel room at BWI. Maybe this person doesn't know about the DIS and that people here rent for less.</font>

 

[AFMom]

I'm with Pam. I'll be paying maint. fees, and since I financed - interest on my loan. I also don't see why points only sell for $10 - they could easily be $15. Still be a deal for the renter, and a for the seller. I happen to like capitalism, and if someone wants to buy without doing research - well,,,,, that's up to them.

 

[kweaver]

I agree as well. The cost of owning DVC keeps creeping up while rental prices here generally stay low. $10 per point is not enough to make it worthwhile for us to rent our points. $12...maybe.

We will generally use them all ourselves anyway.

 

[dianeschlicht]

I wonder if this is a prefered view or standard. In the beginning he lists it as a preferred view, but at the bottom it states it is for standard view studio only.

 

[Pa@okw95]

At $155 per night the buyer would be getting a great deal. He is not charging enough in my opinion but it appears to be higher then the give away prices others charge.

 

[DrTomorrow]

I wonder if the seller's getting nervous yet. No bids, and the reservation is for September 5th .....

 

[PamOKW]

The view mentions are confusing. It looks like if you book this exact trip you get the preferred view. They mention that any changes to the dates will result in a standard view -- that may be to cover the point differences in other months and/or just saying they won't guarantee a Boardwalk view.

It'll be interesting to see how this plays out. Maybe the owner has a back-up plan for the points if no buys them.

 

[Johnnie Fedora]

Originally posted by msdis
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&category=3257&item=2262882504&rd=1&ssPageName=WDVW

$17.75 pp
I hope no-one buys this and they find it not worthy of their time and they find a new "hobby". I have no problem with renters for the right reason but this has all the readings of a DVC for hire.

I hope you feel the same way about how Disney rents out DVC points. Disney can take the DVC points exchanged for a CC, DCL or other exchange and can rent them for rack rate if they choose. Rack rate of $300.00/night at 12points for a studio is $25/point. Plus 11% tax= 27.50/pt.

The reason the rental points have been holding at $10/pt is because members compare the per point profit to what DVC will give you for your points, which is about $5-6/point.

Members should start comparing apples to apples and look at the actual CRO cash price for a given reservation, and then discount accordingly to compete with the CRO cash price. This Ebay price is more in line with what members should be receiving for rented points.

 

[LIFERBABE]

The reason the rental points have been holding at $10/pt is because members compare the per point profit to what DVC will give you for your points, which is about $5-6/point.

ITA, I have yet to rent any points, but to me, $4.50 ppt. profit is not worth all the emails and calls to MS I would have to make, to rent them. Our dues are going to go up, and it seems everyone is fixated on this $10 ppt. Our costs have risen per point too. I wouldnt do Magical Beginnings at $10 ppt and I won't rent for $10 ppt. Transfer to another member yes Rent no.

 

[SoCalKDG]

OK, haven't rented out points yet, still waiting for my first purchase to close, but that pricing is steep, and here is why.

I can get AKL or VWL for $129 a night, or Swan/Dolphin for $139

So take your 12 points a night, divide into those costs, and you get $12-$13 per point, tax included.

Since a renter takes a chance, they aren't/shouldn't pay more than those costs. So $10-$11 per point is where costing should be, based on the market Disney is setting with there discounts.

Using rack rates is crazy right now where discounts are available everywhere. This may/will change in the future, thus one of the reasons I bought into DVC.

Interesting that people don't want to make $3 to $4 per point, which may seem small, but if you rent 100 points and up, then it is a nice profit.

I assume most owners have staggered costing based on the number of points they rent, yes? Maybe $11 for 100 points and up, $12 for 51-100, and $13 for 10-50?

 

[DrTomorrow]

I agree with SoCalKDG; I'll take $450 for a few phone calls and emails!

And now we have a chance to actually see how the market values a DVC point, by watching this auction. If the points are really worth $17 each, then someone will snap this up, otherwise we'll have some evidence that their value is less - eBay is the "unseen hand" in action.

Time will tell....

 

[LIFERBABE]

I agree with SoCalKDG; I'll take $450 for a few phone calls and emails!

OK Never say never,

Granted if they are points I really cant use or are distressed, I would be willing to do the work to get rid of them. But I have yet to be in this situation, so currently it is not worth it to me especially when they could enhance our trip or afford us to bring family.

 

[todsue99]

Did you notice the seller has a OKW one in OCt. for $499 also.

 

[DrTomorrow]

Originally posted by LIFERBABE
OK Never say never,

Granted if they are points I really cant use or are distressed, I would be willing to do the work to get rid of them. But I have yet to be in this situation, so currently it is not worth it to me especially when they could enhance our trip or afford us to bring family.

ITA here - points are priceless when used for yourself, family and friends.