Rented points loss decision

[Mrspeaks]

I rented points for a 4 night stay at the Poly Sept 25-29 through the DVC store. I don’t think we will be comfortable traveling then. My options are to not pay in full and loose $700, have a friend or family member take over the reservation or pay in full and see if they can resell the reservation on their confirmed reservations page for a credit to use in 24 months.

I would rather not loose the money, but If we can’t travel I don’t know if the risk of loosing more money is worth the risk of paying in full to see if it would resell.

Thoughts on what you would do in this scenario if you couldn’t go?

 

[Sandisw]

I think it is going to be very hard to secure a rental as there are a ton out there right now with renters not wanting to go,

Plus, if someone doesn’t have tickets, they can’t even attempt to book the parks until those open up for sale again...which means an even smaller pool of new renters n

IMO, I’d cut your loss if you don’t want to go.

 

[CarolMN]

Right now, they don't have any POLY reservations at all listed and nothing at WDW for the dates you listed.

https://www.dvcstore.com/pre-booked-reservations.cfm
Only you can decide how much risk you are willing to assume. The choice is between a certain loss of $700 or betting (whatever the rest of the payment is) that you can get it all back.

For me, it would be to take the loss. But that's because my DH & I both have multiple risk factors for developing serious complications should we catch the virus. I don't think the virus will be under control until next year at the earliest. A Disney trip isn't important enough to me to risk our health. But those same risk factors may not apply to your family.

Tough decision. Sorry you have to make it.

 

[Jon84]

We have rented points from David's, we can't go so they are approaching the member to see if they are willing for David's to find a new renter. No idea if they'll manage it!

 

[Mrspeaks]

We have rented points from David's, we can't go so they are approaching the member to see if they are willing for David's to find a new renter. No idea if they'll manage it!

That’s a nice option. The DVC store didn’t offer that as an option.

 

[starry_solo]

That’s a nice option. The DVC store didn’t offer that as an option.

David's only recently started that option. Before, it was like the other rental brokers, SOL.

But, if you go and look at confirmed DVC reservations, between the 3 brokers, there are over 1000 confirmed reservations that people are attempting to rent and most are asking full price ($19/point).

 

[New Mouse]

David's only recently started that option. Before, it was like the other rental brokers, SOL.

But, if you go and look at confirmed DVC reservations, between the 3 brokers, there are over 1000 confirmed reservations that people are attempting to rent and most are asking full price ($19/point).

Which is insane. Smart move would be the sell em for the maintenance fees and call it a day.

 

[starry_solo]

Which is insane. Smart move would be the sell em for the maintenance fees and call it a day.

exactly....

 

[Marionnette]

David's only recently started that option. Before, it was like the other rental brokers, SOL.

But, if you go and look at confirmed DVC reservations, between the 3 brokers, there are over 1000 confirmed reservations that people are attempting to rent and most are asking full price ($19/point).

They’re asking full price because that’s what the rental agencies need to charge in order to recover their costs. Heaven forbid that they should reduce their cut! Assuming that they already paid an owner 70%-75% of what they had coming to them at $19/point, how much can the brokers reduce the price, pay the remaining 25%-30% owed to the owner and maintain their profit margin knowing that they are going to be issuing a full-price travel voucher to the original renter?

Believe me, I’m not defending the brokers. I think that in a way, they screwed themselves with their old contracts. But they can’t drop their prices on confirmed reservations to the going rate of $12/point for distressed points* if they have to pay the owners $15 - $16 per point in the end.

*The going rate on Facebook groups for distressed points

 

[New Mouse]

They’re asking full price because that’s what the rental agencies need to charge in order to recover their costs. Heaven forbid that they should reduce their cut! Assuming that they already paid an owner 70%-75% of what they had coming to them at $19/point, how much can the brokers reduce the price, pay the remaining 25%-30% owed to the owner and maintain their profit margin knowing that they are going to be issuing a full-price travel voucher to the original renter?

Believe me, I’m not defending the brokers. I think that in a way, they screwed themselves with their old contracts. But they can’t drop their prices on confirmed reservations to the going rate of $12/point for distressed points* if they have to pay the owners $15 - $16 per point in the end.

*The going rate on Facebook groups for distressed points

In the time of distress, your goal should be to generate as much revenue as possible. Whether thats 5 dollars a point or 19 a point doesnt matter, even if its at a loss. You need to stop the bleeding or you will likely wind up with 0 (which is going to happen with those thousands of reservations).

 

[Sandisw]

In the time of distress, your goal should be to generate as much revenue as possible. Whether thats 5 dollars a point or 19 a point doesnt matter, even if its at a loss. You need to stop the bleeding or you will likely wind up with 0 (which is going to happen with those thousands of reservations).

It would seem so...and I am sure that any renter trying to unload would be happy with something vs nothing

 

[starry_solo]

They’re asking full price because that’s what the rental agencies need to charge in order to recover their costs. Heaven forbid that they should reduce their cut! Assuming that they already paid an owner 70%-75% of what they had coming to them at $19/point, how much can the brokers reduce the price, pay the remaining 25%-30% owed to the owner and maintain their profit margin knowing that they are going to be issuing a full-price travel voucher to the original renter?

Believe me, I’m not defending the brokers. I think that in a way, they screwed themselves with their old contracts. But they can’t drop their prices on confirmed reservations to the going rate of $12/point for distressed points* if they have to pay the owners $15 - $16 per point in the end.

*The going rate on Facebook groups for distressed points

I agree, but how many of those confirmed reservations were actually paid out to the owners at $19/point? Some of the confirmed reservations are for pre-park opening, some are right at park opening, etc. Some are, surprisingly, for January 2021. I would guess that at least 1/2 of the confirmed reservations are made with points that expire pretty soon and I wouldn't think the brokers would be paying the owners anything unless they were actually rented out.

 

[Sandisw]

I agree, but how many of those confirmed reservations were actually paid out to the owners at $19/point? Some of the confirmed reservations are for pre-park opening, some are right at park opening, etc. Some are, surprisingly, for January 2021. I would guess that at least 1/2 of the confirmed reservations are made with points that expire pretty soon and I wouldn't think the brokers would be paying the owners anything unless they were actually rented out.

I am pretty sure an owner is expecting to be paired regardless because with resorts and parks open from July 11th on, its on the renter now.

So, not really sure why the owner won’t get paid in full.

 

[starry_solo]

I am pretty sure an owner is expecting to be paired regardless because with resorts and parks open from July 11th on, its on the renter now.

So, not really sure why the owner won’t get paid in full.

That's assuming all the confirmed reservations are ones that David's is trying to re-rent to help the original renter out. Same with the hundreds on the other rental broker's site. I don't think all of them are. I think some of them are, but not all of them.

 

[Marionnette]

I agree, but how many of those confirmed reservations were actually paid out to the owners at $19/point? Some of the confirmed reservations are for pre-park opening, some are right at park opening, etc. Some are, surprisingly, for January 2021. I would guess that at least 1/2 of the confirmed reservations are made with points that expire pretty soon and I wouldn't think the brokers would be paying the owners anything unless they were actually rented out.

A lot of those reservations are from renters cancelling due either to COVID-19 concerns or the inability to travel to Disney due to travel bans. The brokers have to pay the owners the contracted price regardless of whether the renter travels or not because the resorts are open. Brokers are offering owners an incentive of $1-$2 per point to re-rent the reservation to someone else.

Basically, the owner holds on to the reservation and IF it rents to someone else, they get paid $1-$2 per point on top of the agreed upon rate just to change the names on the reservation. Since the owner gets paid the original price of the reservation goes unused, there is no incentive for them to drop the price below the original rate.

The broker, OTOH, needs to sell that reservation in order to fund the travel voucher that they offered the original renter. If the rental rate falls below a certain price, they begin to hemorrhage money. Up to this point, they have been ahead of the game or breaking even by demanding that owners share in the pain. Now, the pain is all theirs because they are the ones allowing the renters to break the contract that is between broker and renter.

 

[starry_solo]

A lot of those reservations are from renters cancelling due either to COVID-19 concerns or the inability to travel to Disney due to travel bans. The brokers have to pay the owners the contracted price regardless of whether the renter travels or not because the resorts are open. Brokers are offering owners an incentive of $1-$2 per point to re-rent the reservation to someone else.

Basically, the owner holds on to the reservation and IF it rents to someone else, they get paid $1-$2 per point on top of the agreed upon rate just to change the names on the reservation. Since the owner gets paid the original price of the reservation goes unused, there is no incentive for them to drop the price below the original rate.

The broker, OTOH, needs to sell that reservation in order to fund the travel voucher that they offered the original renter. If the rental rate falls below a certain price, they begin to hemorrhage money. Up to this point, they have been ahead of the game or breaking even by demanding that owners share in the pain. Now, the pain is all theirs because they are the ones allowing the renters to break the contract that is between broker and renter.

I thought they only let them out of the contract IF they re-rent the reservation?

 

[Marionnette]

I thought they only let them out of the contract IF they re-rent the reservation?

You mean the renters? From what I’ve seen, they’re offered a full-price voucher if the have to cancel with no strings attached OR a cash refund minus $3/point if their reservation can be re-rented. That was one broker’s solution.

 

[starry_solo]

You mean the renters? From what I’ve seen, they’re offered a full-price voucher if the have to cancel with no strings attached OR a cash refund minus $3/point if their reservation can be re-rented. That was one broker’s solution.

ah. I thought both of those options were conditional upon re-renting the reservation