Rental Rates

[DougEMG]

I haven't looked at rental rates for a few months but it sure seems like there has been a jump in rental prices on the for rent section. Wow!

 

[Sandisw]

I agree. I thought for sure they’d be lower for longer.

 

[BWV Dreamin]

I haven't looked at rental rates for a few months but it sure seems like there has been a jump in rental prices on the for rent section. Wow!

So what rates are you seeing?

 

[Matty B13]

I know I'll be putting my excess points up for rent at $20/point with the huge increases in resale and direct prices. It's the only silver lining I see with this crazy price inflation for DVC.

 

[MomOTwins]

I'm astonished they can charge these kinds of prices. Out of curiosity, I looked up the going rental rate for a 1-br preferred view at RIV this summer. It was priced over $1,000 a night. Then I look at a cash booking through disney--same room type, with the summer discounts, was in the $700s.

Totally nuts.

 

[Best Aunt]

I know I'll be putting my excess points up for rent at $20/point with the huge increases in resale and direct prices. It's the only silver lining I see with this crazy price inflation for DVC.

Is there any agency that offers $20 per point to owners, or did you mean that you would rent them on your own? As far as I know, David's goes as high as $15.50 to owners (and charges $20), Timeshare Store go as high as $15.50 (and charges $18.50), and DVC Rental Store goes as high as $16 (but the website doesn't seem to show price per point for renters, they just show price for a total vacation and I'm too lazy to break it down).

 

[LSchrow]

I'm astonished they can charge these kinds of prices. Out of curiosity, I looked up the going rental rate for a 1-br preferred view at RIV this summer. It was priced over $1,000 a night. Then I look at a cash booking through disney--same room type, with the summer discounts, was in the $700s.
Totally nuts.

I checked a few dates with the limited time 25% off Summer offer. This is one example:
Through Disney, the night of 8/16, a Riviera Studio preferred view would cost $562 (rack would be about $700), plus resort overnight parking ($25 per night), and additional adult fee ($35 per adult for each more than two, per night), if applicable.
The same room if renting points at $19, would cost $418 (22 points) total - no additional parking or adult fees incurred.
That is still an additional 25% off ($144) less than Disney's Summer Sale Offer, not even taking into consideration any of the extra fees Disney charges.
Even at $20pp ($440), a renter would save an additional 22% ($122) over the Summer offer.
An Owner would need to be charging $25.55 per point to equal Disney's "sale" price

As much as it pains me (we prefer 1 bdrms) , Studios actually have the best point vs cash value.
Btw, Riviera Preferred Studios actually have almost zero DVC availability until the end of 2021 (in the 5 months, there is just one lone night left in Dec).

 

[Nabas]

I checked a few dates with the limited time 25% off Summer offer. This is one example:
Through Disney, the night of 8/16, a Riviera Studio preferred view would cost $562 (rack would be about $700), plus resort overnight parking ($25 per night), and additional adult fee ($35 per adult for each more than two, per night), if applicable.
The same room if renting points at $19, would cost $418 (22 points) total - no additional parking or adult fees incurred.
That is still an additional 25% off ($144) less than Disney's Summer Sale Offer, not even taking into consideration any of the extra fees Disney charges.
Even at $20pp ($440), a renter would save an additional 22% ($122) over the Summer offer.
An Owner would need to be charging $25.55 per point to equal Disney's "sale" price

There is a certain comfort and security paying Disney directly. A room from Disney includes daily Mousecleaning. Plus if you book a room-only reservation, you can cancel with no penalty up to 5 days before.

Although renting DVC points saves money, there also are some downsides. I think an additional discount is needed to motivate DVC renters.

My point is that renting DVC points always has to be much less than renting directly from Disney.

For fun, I did a similar comparison for the Grand Floridian. The current rate on the disneyworld.com website for July 10 to 17 (Saturday-to-Saturday) in an outer building Lagoon View room is $5,496.75, $785.25 per night. Disney often offers 30% discounts on Deluxe Resort rooms: $529.68 per night.

That same week in a VGF Lake View Studio is 192 points. At $20pp, this works out to $548.57 per night.

It seems to me that, at $20pp, DVC rental prices are pushing the limit.

 

[houseofduck]

In the past, I have found that high point seasons (like summer) make some DVC rentals very close to or worse than Disney direct discount pricing, especially in one bedrooms. I always do a quick check for discounts when someone asks me for a summer rental. I’d rather rent to someone during a period when they getting a good savings over going directly through Disney.

 

[Nabas]

In the past, I have found that high point seasons (like summer) make some DVC rentals very close to or worse than Disney direct discount pricing, especially in one bedrooms. I always do a quick check for discounts when someone asks me for a summer rental. I’d rather rent to someone during a period when they getting a good savings over going directly through Disney.

Fall used to require few DVC points, making it an attractive period to rent points. However, with recent point balancing, much of the fall season requires just as many points as summer.

 

[Matty B13]

Is there any agency that offers $20 per point to owners, or did you mean that you would rent them on your own? As far as I know, David's goes as high as $15.50 to owners (and charges $20), Timeshare Store go as high as $15.50 (and charges $18.50), and DVC Rental Store goes as high as $16 (but the website doesn't seem to show price per point for renters, they just show price for a total vacation and I'm too lazy to break it down).

I was talking about renting my own points, I'll never use a broker after what happened during covid. Also, most contracts put out by brokers now for DVC points are a lose-lose for most owners, I would never accept their terms. But I also don't rent out a lot of points, just what I have extra after my family's vacations.

 

[BWV Dreamin]

I have rented my points since 2008. I usually rent out half of my points to cover MF’s then vacation with the rest. Rental rates have gone up over that period of time. I could rent my current points at $20/pt. But I like to be just under the brokers. I will be using all of my points now that I have grandchildren and am approaching retirement. But having rented this way for over 12 years, I have paid off many of my contracts, then sold for a profit. Renting has been very very good to me.

 

[CarolMN]

There is a certain comfort and security paying Disney directly. A room from Disney includes daily Mousecleaning. Plus if you book a room-only reservation, you can cancel with no penalty up to 5 days before.

Although renting DVC points saves money, there also are some downsides. I think an additional discount is needed to motivate DVC renters.

My point is that renting DVC points always has to be much less than renting directly from Disney.

For fun, I did a similar comparison for the Grand Floridian. The current rate on the disneyworld.com website for July 10 to 17 (Saturday-to-Saturday) in an outer building Lagoon View room is $5,496.75, $785.25 per night. Disney often offers 30% discounts on Deluxe Resort rooms: $529.68 per night.

That same week in a VGF Lake View Studio is 192 points. At $20pp, this works out to $548.57 per night.

It seems to me that, at $20pp, DVC rental prices are pushing the limit.

I generally agree with your conclusion re pushing the limit for some situations. However, you didn't say if you included tax in your calculations (12.5%). If not, the cash rate/night comes to just under $600. Cash guests also pay for overnight parking. That's enough for many to choose renting.

 

[davidl81]

I generally agree with your conclusion re pushing the limit for some situations. However, you didn't say if you included tax in your calculations. If not, the cash rate/night comes to just under $600. Cash guests also pay for overnight parking. That's enough for many to choose renting.

The tax is what most people forget about when doing the DVC rental versus Disney direct. (Plus the resort fees past 2 people). Tax for Disney rooms comes out to about 12%
That being said to me rental has to save at least 20% in total to consider going that route. I like the ability to cancel my reservation if needed and of course you eliminate the risk of having an owner cancel a reservation on you and you are stuck without a room and out $1000s of dollars (I know it’s crazy rare, but it can be a concern)

 

[KAT4DISNEY]

$1000s of dollars (I know it’s crazy rare, but it can be a concern)

More like crazy, crazy, crazy rare. Statistically it wouldn't even be a blip on the radar. But brokers like to bring it up as a reason to rent thru them.

 

[davidl81]

More like crazy, crazy, crazy rare. Statistically it wouldn't even be a blip on the radar. But brokers like to bring it up as a reason to rent thru them.

It’s not a major concern of mine, but as rental price creeps closer to cash price it becomes a slight consideration. We don’t rent much really unless we are out of points and just need a single night added on to a reservation etc. We have had luck renting through alternate methods (namely people who have cheap RCI time shares and do DVC exchanges). We have gotten some incredible deals from there (BW 1BR at $7pp etc), but you have to make your schedule for their existing reservation.

 

[Marionnette]

It’s not a major concern of mine, but as rental price creeps closer to cash price it becomes a slight consideration. We don’t rent much really unless we are out of points and just need a single night added on to a reservation etc. We have had luck renting through alternate methods (namely people who have cheap RCI time shares and do DVC exchanges). We have gotten some incredible deals from there (BW 1BR at $7pp etc), but you have to make your schedule for their existing reservation.

You have to be careful with those RCI -> DVC rentals. They're not supposed to be rented out to another party. And if Disney catches wind of the arrangement they could cancel it out from under you. IMO, it's even riskier than renting directly from a DVC owner but I guess that's why the rate is so low.

 

[GoingSince1990]

I was talking about renting my own points, I'll never use a broker after what happened during covid. Also, most contracts put out by brokers now for DVC points are a lose-lose for most owners, I would never accept their terms. But I also don't rent out a lot of points, just what I have extra after my family's vacations.

David’s handled the Covid issues extremely poorly, but the DVC Rental Store, in my experience as an owner renting out points and where some reservations were canceled due to Covid, acted with consummate professionalism.

 

[davidl81]

You have to be careful with those RCI -> DVC rentals. They're not supposed to be rented out to another party. And if Disney catches wind of the arrangement they could cancel it out from under you. IMO, it's even riskier than renting directly from a DVC owner but I guess that's why the rate is so low.

Yes you are correct. I was told to always say that the rental was gifted to me. But there is a risk there for sure.

 

[Nabas]

I generally agree with your conclusion re pushing the limit for some situations. However, you didn't say if you included tax in your calculations (12.5%). If not, the cash rate/night comes to just under $600. Cash guests also pay for overnight parking. That's enough for many to choose renting.

Yes, I included tax. I did not include parking.