Renting out DVC points and addonitus

[macman123]

I currently have 555 BLT points.

However, I usually have a 3 stays at different resorts.

I have addonitus - I have found a few SSR contracts which I can get for around $85pp. So I can use those SSR points for the 7 month window.

I wonder whether its worth renting them out and whether people do.

I would have around 400 BLT or SSR points year to rent out. This would cover help dues.

Thoughts?

 

[DVC Doctor]

Do NOT buy DVC points with the intention of renting....but that is only my opinion.

 

[MICKIMINI]

Don't forget, you have to report income and pay taxes. Depending on your bracket - say 25%, if you get $15 per point, pay $8 for MF's and $4 in taxes there isn't much left.

Renting has been a great option if you buy a new contract and end up with an entire years worth of points with no MF's or when you have extra points you can't bank. I've had six rentals in the past year and will have one more when I get banked 2019 points from one of the two contracts I recently bought. The other rentals were from two contracts I bought last year and I had hundreds of extra points with no MF's. That was gravy.

Buying to rent isn't a money maker and can be a headache as we've found out recently. Just my two cents.

 

[davidl81]

So let's say you get an average of $15 per point rental at SSR (and for the sake of this also say rental prices will increase over time by amount the same as inflation so help with time value of money etc). Your dues are about $7 so you will make a $8 per point profit assuming all goes well. Rental prices are holding in higher than $15 right now, but many are concerned that next year they may drastically drop as people have tons of banked points they have to get rid of. But if we go with $8 per point profit you will break even at about the 10-11 year mark. After that you will have about 23 years left on the contract. Of course the SSR contract will still have value in 10 years and based on how OKW has not dropped I would think its safe to assume it will still be worth that same $85 if not a tad bit more.
Overall I think the idea of buying a big points package and renting them out can make sense, and also its nice to have all of those points in case you want to make say a huge Aluani Grand Villa trip one year.

 

[davidl81]

Don't forget, you have to report income and pay taxes. Depending on your bracket - say 25%, if you get $15 per point, pay $8 for MF's and $4 in taxes there isn't much left.

Renting has been a great option if you buy a new contract and end up with an entire years worth of points with no MF's or when you have extra points you can't bank. I've had six rentals in the past year and will have one more when I get banked 2019 points from one of the two contracts I recently bought. The other rentals were from two contracts I bought last year and I had hundreds of extra points with no MF's. That was gravy.

Buying to rent isn't a money maker and can be a headache as we've found out recently. Just my two cents.

I honestly wonder how many people are claiming that as income since there is really nothing being reported to the IRS that would make them look into it. Is there a dollar threshold where you have to report it legally or is any income form it need to be reported? Your reply is correct I'm pretty sure, but just in reality I wonder how many people are actually claiming this as income?

 

[Sandisw]

I don’t think it is ever a good idea to buy to rent and given what has happened, I think rentals are going to be harder, unless one takes a lot less.

I think we will see bigger discounts from Disney for cash stays and by the time a renter gets trip insurance, I don’t think it’s going to make it worth it given the risk.

 

[Aussie RJ]

To give you an idea about the current market; I’ve just rented out about 450 points across 13 reservations as we are not allowed to leave the country. To move them quickly, I dropped the price to $14pp. I found the market to be very competitive but the points all went in about 10 days. I still managed to sell a few New Years reservations at $19pp.

 

[davidl81]

To give you an idea about the current market; I’ve just rented out about 450 points across 13 reservations as we are not allowed to leave the country. To move them quickly, I dropped the price to $14pp. I found the market to be very competitive but the points all went in about 10 days. I still managed to sell a few New Years reservations at $19pp.

I am honestly very surprised that rental prices have stayed as high as they have. My gut feeling is that many people banked points into 2021 because they were worried about renting points then having to refund money of the resort was closed etc so there are less points on the market for 2020, but that is just a guess.
2021 will be interesting since unless Disney does something with banking rules there will be a huge amount of banked points that people will need to use. Those uses will either have to be actual reservations or rentals. And there is the possibility that actual demand is not fully back in 2021 which would create this huge storm of tons of point supply but not a bunch of demand. I hope that the rental market does not crash since I think it would hurt DVC members as a whole for a while, but if people get real low on pricing I would likely rent out points and then bank my own points for future use.

 

[BritneyBelle]

Don't forget, you have to report income and pay taxes. Depending on your bracket - say 25%, if you get $15 per point, pay $8 for MF's and $4 in taxes there isn't much left.
Do you mind me asking if you went through a third party to rent or direct? I’m just wondering if the third party is saving heartaches for people since the shut down of WDW was in no ones forecast, and wasn’t sure how it was being handled by the big rental companies.
Renting has been a great option if you buy a new contract and end up with an entire years worth of points with no MF's or when you have extra points you can't bank. I've had six rentals in the past year and will have one more when I get banked 2019 points from one of the two contracts I recently bought. The other rentals were from two contracts I bought last year and I had hundreds of extra points with no MF's. That was gravy.

Buying to rent isn't a money maker and can be a headache as we've found out recently. Just my two cents.

 

[BritneyBelle]

I am honestly very surprised that rental prices have stayed as high as they have. My gut feeling is that many people banked points into 2021 because they were worried about renting points then having to refund money of the resort was closed etc so there are less points on the market for 2020, but that is just a guess.
2021 will be interesting since unless Disney does something with banking rules there will be a huge amount of banked points that people will need to use. Those uses will either have to be actual reservations or rentals. And there is the possibility that actual demand is not fully back in 2021 which would create this huge storm of tons of point supply but not a bunch of demand. I hope that the rental market does not crash since I think it would hurt DVC members as a whole for a while, but if people get real low on pricing I would likely rent out points and then bank my own points for future use.

I’m really curious what the rental market will look like too. We’ve rented points, and while I would love to own realistically renting makes the most sense for us at the moment.

 

[macman123]

I honestly wonder how many people are claiming that as income since there is really nothing being reported to the IRS that would make them look into it. Is there a dollar threshold where you have to report it legally or is any income form it need to be reported? Your reply is correct I'm pretty sure, but just in reality I wonder how many people are actually claiming this as income?

im in the UK. So may or may not declare the income............

 

[MICKIMINI]

I honestly wonder how many people are claiming that as income since there is really nothing being reported to the IRS that would make them look into it. Is there a dollar threshold where you have to report it legally or is any income form it need to be reported? Your reply is correct I'm pretty sure, but just in reality I wonder how many people are actually claiming this as income?

I don't know the percentage of honest people who report this as income, but I sure do! I'd rather not find out what happens if you don't

 

[Cyberc1978]

To give you an idea about the current market; I’ve just rented out about 450 points across 13 reservations as we are not allowed to leave the country. To move them quickly, I dropped the price to $14pp. I found the market to be very competitive but the points all went in about 10 days. I still managed to sell a few New Years reservations at $19pp.

I always rent my surplus of points and I very very rarely list the points for rent. Instead I booked a few hard to get reservations and rented those. hands down this was end of February before COVID-19 hit.

I have no reason to believe I can’t do it again, however I have thought about skipping a year and just bank the points Instead and hopefully everything will settle down a bit by 2022.

I only expect to have 1 trip to WDW next year and that will be in my club level studio at AKV.

 

[Aussie RJ]

I always rent my surplus of points and I very very rarely list the points for rent. Instead I booked a few hard to get reservations and rented those. hands down this was end of February before COVID-19 hit.

I honestly never intended to rent my points. But I banked all I could and sold the rest. An interesting observation although a small survey size, Kidani was the most sought after even though almost all resorts were available for most dates. And of the 13 families who bought the points, 4 have already personally messaged asking for more points. Looks like I have clients LOL.

 

[zakdavid]

I am honestly very surprised that rental prices have stayed as high as they have. My gut feeling is that many people banked points into 2021 because they were worried about renting points then having to refund money of the resort was closed etc so there are less points on the market for 2020, but that is just a guess.
2021 will be interesting since unless Disney does something with banking rules there will be a huge amount of banked points that people will need to use. Those uses will either have to be actual reservations or rentals. And there is the possibility that actual demand is not fully back in 2021 which would create this huge storm of tons of point supply but not a bunch of demand. I hope that the rental market does not crash since I think it would hurt DVC members as a whole for a while, but if people get real low on pricing I would likely rent out points and then bank my own points for future use.

now that is a solid idea

 

[justadreamaway77]

Am I the only person that uses all my points?! I know if I buy more, I'll just visit more! DH is already looking for contract #3! Thankfully we have a less common UY so that should hold him off for awhile!

 

[zakdavid]

Am I the only person that uses all my points?! I know if I buy more, I'll just visit more! DH is already looking for contract #3! Thankfully we have a less common UY so that should hold him off for awhile!

I know. No matter what I am always spending my points and fighting with myself to borrow or not

 

[sethschroeder]

I’m really curious what the rental market will look like too. We’ve rented points, and while I would love to own realistically renting makes the most sense for us at the moment.

If I were looking to rent I would be looking and posting for points in the $10-$12 range and possibly coming up from there to $13-$14 range when it becomes crunch time. You can't post requests on this forum but there are other locations you can request a reservation and then owners come to you (its basically opposite of here) they are a no no to link here though.

 

[Cyberc1978]

If I were looking to rent I would be looking and posting for points in the $10-$12 range and possibly coming up from there to $13-$14 range when it becomes crunch time. You can't post requests on this forum but there are other locations you can request a reservation and then owners come to you (its basically opposite of here) they are a no no to link here though.

Unless I had points that was expiring within 1-2 months I would never ever rent that low.

I would feel that I gave away my points for almost free. Instead I’d rather give my points away to family and friends. Or maybe just bank the points to RCI that way I would get a little use of the points.

 

[sethschroeder]

Unless I had points that was expiring within 1-2 months I would never ever rent that low.

I would feel that I gave away my points for almost free. Instead I’d rather give my points away to family and friends. Or maybe just bank the points to RCI that way I would get a little use of the points.

Thats you others would never use RCI or wouldn't even know about it.

There are going to be an extreme excess of points over the next couple years that people have. They can view it as getting ride of their points for some quick cash because they don't have any more vacation time to use anyways.

SSR points were available on this forum for $13/point just the other day. You probably could work something out to take all the points as well to get a slight discount so they didn't have to rent out to multiple people.