Renting out DVC points

[macman123]

I am new to this and have brought a couple of contracts.

However, I will have an excess of around 50 points per year. I can blow them on a better room or rent them out.

Im not buying them to make money - but wondered what are people experiences are of renting them out?

I have BLT as home resort and wondered if there were enough 'renters' to make it worthwhile or whether there is generally oversupply of rental points available?

Thanks in advance.

 

[CraigInPA]

There has been an ongoing and long standing desire for people to rent points at BLT. However, 50 points doesn't get much of a stay. Many people want a week's worth of points, or a long weekend, which (in many parts of the year) is more than 50 points.

With the current melt-down of David's (the largest DVC broker), I'd stay far away from them. If you decide to rent out points, you can rent them directly yourself on the rent/trade board here on disboards. Another, cleaner, option is to transfer them out to another DVC member, but remember you can only do one transfer (in or out) each year.

I'm in a similar situation, but we bank the extra 60 each year and then upgrade or extend our vacation every few years.

 

[macman123]

There has been an ongoing and long standing desire for people to rent points at BLT. However, 50 points doesn't get much of a stay. Many people want a week's worth of points, or a long weekend, which (in many parts of the year) is more than 50 points.

Thanks. Would you suggest 150-200 is a reasonable amount to rent out for studio? Or 200-250 for 1BR. I am not after getting rich, just handy to contribute towards dues and/or use excess points.

 

[CraigInPA]

Depending upon season, 150-175 points for a studio should give you about a week. It's been my experience that many renters want either a studio (for cost reasons) or a 2 bedroom (for space reasons). Many BLT renters want to be there because of the easy walk to MK for their young families.

Keep in mind that if you rent points, you may be subject to income tax on the rental amount. In the US, it's considered ordinary income. You can subtract your dues on those points as your cost basis, but you cannot deduct any part of the initial purchase price. If you're paying $130-140 per point for these points, and rent for less than $16 per point, you will be losing money after taxes, dues, and the percentage of the contract consumed. So, you are correct you will not get rich doing it.

 

[macman123]

Keep in mind that if you rent points, you may be subject to income tax on the rental amount. In the US, it's considered ordinary income. Y

Ah I am in the UK so it would be subject to UK tax. So its either 150-175 points for a studio or 400-450 for a 2BR then?

 

[crisi]

In the past there have been fewer points available than people looking to rent. But the past right now is a poor indicator of what the future might bring. DVC rentals have always involved risk - but since the vast majority of them worked out, the risk was small and it made it more that worthwhile for most renters to pursue a DVC rental rather than working with CRO. I suspect that for the next several years, the reality of the situation - that rentals are often non-refundable - even in the case of a worldwide pandemic that shuts down Disney - will change that balance. I would only buy points to rent right as a speculative "investment" and I'd wait six months for the market to crash before doing so (and I, personally, wouldn't do it at all, its a poor speculative investment, renting does take work and does come with its own risk (I suspect some owners are going to find themselves in court over cancellations).

 

[MICKIMINI]

As an owner (1996) and occasional renter of points. I would say live it up and stay in a larger villa or stay longer if you have extra points for the foreseeable future. It is risky to rent right now and I'm sweating out the last two I have in the pipeline (with a broker) for October and January.

Transferring points to another owner seems less risky but I haven't tried it yet. I have rented to friends and colleagues in the past and that IMO is the safest (if there is "safe" right now) as you can set up expectations and work with them to change reservations if necessary, but all things come with risk. I would not recommend buying points specifically to rent.

 

[macman123]

Transferring points to another owner seems less risky but I haven't tried it yet.

Yes, that seems my preferred option as we are all in the same club!

 

[Vkothari916]

There has been an ongoing and long standing desire for people to rent points at BLT. However, 50 points doesn't get much of a stay. Many people want a week's worth of points, or a long weekend, which (in many parts of the year) is more than 50 points.

With the current melt-down of David's (the largest DVC broker), I'd stay far away from them. If you decide to rent out points, you can rent them directly yourself on the rent/trade board here on disboards. Another, cleaner, option is to transfer them out to another DVC member, but remember you can only do one transfer (in or out) each year.

I'm in a similar situation, but we bank the extra 60 each year and then upgrade or extend our vacation every few years.

Just curious what happened with David’s?

 

[MICKIMINI]

Just curious what happened with David’s?

https://www.disboards.com/threads/d...r-rescheduling.3796922/page-124#post-61836362
All 124 pages have at it!

 

[Deb & Bill]

Buy the number of points you can use without renting out points. Lots of people are going to be very wary of renting points after the point broker fiasco during the resort shut down.

 

[macman123]

Buy the number of points you can use without renting out points. Lots of people are going to be very wary of renting points after the point broker fiasco during the resort shut down.

Ah, do you know if 'sales' of those rentals are right down, or whether just people are jumpy? I guess no data available on this?

 

[_auroraborealis_]

Ah, do you know if 'sales' of those rentals are right down, or whether just people are jumpy? I guess no data available on this?

Things are bad. People are losing money, and losing their minds.

 

[macman123]

Things are bad. People are losing money, and losing their minds.

I guess renting direct, rather than through a third party would be easier?

 

[CarolMN]

Buying to rent, even a small amount, is especially risky right now. It's not just because of renters' worry about non-refundable reservations due to resort closure, either. It's the reduced $$ an owner would have to accept due to competition with Disney. Current rental prices are not sustainable when, and I do think it is when, Disney starts discounting stays to fill the cash resorts.

 

[macman123]

Buying to rent, even a small amount, is especially risky right now. It's not just because of renters' worry about non-refundable reservations due to resort closure, either. It's the reduced $$ an owner would have to accept due to competition with Disney. Current rental prices are not sustainable when, and I do think it is when, Disney starts discounting stays to fill the cash resorts.

I wouldn't be buying to rent, but my plan is to stay at different resorts each time, but I want enough points to book 3 weeks BLT. So its only when I go to other resorts I gave spare points.

I guess it wouldn't be for another 12 months before I would be in a position to rent......

 

[Deb & Bill]

50 points left over aren't going to give you much to rent out. You can't book a week with only 50 points. You can maybe get a studio at OKW a few times a year for 10 points a night. But not the weekend nights. You won't be able to get the AKV Value villas unless you own there. So just plan on using those left over points yourself. Take a gander at the Rent/Trade Board and see when people are looking for by renting to get an idea of how many points you would need to book for someone.

 

[_auroraborealis_]

I guess renting direct, rather than through a third party would be easier?

Not necessarily easier. What would your contract say and your plan be if you made an 11-month booking for a renter, had your points locked up for them, and Disney closed the resort and they wanted a refund because you were unable to fulfill the contract for the room? Were you to lose the points because they'd been banked or borrowed, would that be an issue? Would you be able to provide a refund 6-7 months later or would you have spent the money and not had several hundred to send back to someone?

 

[macman123]

With the whole renting out points, I understand BLT is desirable.

I am right in assuming VGF is desirable for renting out too?

 

[Deb & Bill]

With the whole renting out points, I understand BLT is desirable.

I am right in assuming VGF is desirable for renting out too?

Only problem there is it takes a whole lot of points for a stay. Even for a studio.