Renting out points as an international owner

[ArtOfAnimationGotMe]

Hello.

I’m not an owner yet, but am looking at buying at PVB or AKL.
I have searched the forums about renting out points as an international owner.

How do you rent out points?
How does it work?
How Do you get the money? (through paypal, or what?)

How do you pay tax in USA?
(Do you have to pay tax).

Thank you in advance.

 

[Helaman]

I rent out points occassionally using a broker (David's). He pays via Paypal. Revenue does need to be reported to the IRS, so you will need to request a TIN tax identification number and file a simple tax return for that year. Note that your taxes paid can be deducted.

 

[CraigInPA]

You can also rent directly to someone using the rent/trade board here on DISBoards. It doesn't matter that you are international, as long as you can work out some way to be paid.

Before you consider renting using David's as a broker, you should be aware that there is a VERY negative 2000+ message thread on how he's treated owners and renters during the recent closure, and his likelihood of bankruptcy.

 

[_auroraborealis_]

Honestly, before buying with intent to rent I would consider the entire situation. Even private rentals have had considerable issues with closures, banked/borrowed points, expiring points and point loss.

It very much suggests that renting out points is a risk and should not be a core intent of ownership.

 

[Minniemoo15]

I am Canadian and when we bought our resale contract last year it came with extra bank points. We rented these points 3 ways:

1) Davids - they are in Canada as well and it was easy. I would be wary of using them at the moment though with all the uncertainty around the business right now. They paid US funds in PayPal.

2) I rented a lot of the points by myself via a Facebook group. This was also very easy and probably what I would do going forward. Paid via PayPal in Us funds.

3) I rented a good chunk of the points to a family friend who was planning a Disney trip. This was probably the easiest option of all. They paid in Canadian funds via Interac e-transfer.

Renting excess points is definitely more of a gamble than it was this time last year. I would see it as a bonus if you are able to rent them out, but not buy a contract counting on it.

Now that those are rented out, we use all our points and don’t rent regularly. But it’s nice knowing it’s an option if we need to.

 

[LAX]

I am Canadian and when we bought our resale contract last year it came with extra points. We rented these points 3 ways:

1) Davids - they are in Canada as well and it was easy. I would be wary of using them at the moment though with all the uncertainty around the business right now. They paid US funds in PayPal.

2) I rented a lot of the points by myself via a Facebook group. This was also very easy and probably what I would do going forward. Paid via PayPal in Us funds.

3) I rented a good chunk of the points to a family friend who was planning a Disney trip. This was probably the easiest option of all. They paid in Canadian funds via Interac e-transfer.

Renting excess points is definitely more of a gamble than it was this time last year. I would see it as a bonus if you are able to rent them out, but not buy a contract counting on it.

Even without the current pandemic, the bolded is sound advice. There are many other things that can affect the rental market. It's probably not a bad a idea to rent out points once in a while to take a break from "Disney." However, buying extra points with the intention to rent is generally not a very good idea.

LAX

 

[ArtOfAnimationGotMe]

Hello and thank you all for taking your time answering my questions.

i’m not buying to rent out points. I’ m buying to be a dvc owner using dvc. I just want to know that it is possible for international owners to rent out their points if I can’t go some years.

still can’t decide AKL or PVB.

 

[Minniemoo15]

Hello and thank you all for taking your time answering my questions.

i’m not buying to rent out points. I’ m buying to be a dvc owner using dvc. I just want to know that it is possible for international owners to rent out their points if I can’t go some years.

still can’t decide AKL or PVB.

Those were the two we were deciding between too. We tried AKL but it got taken in ROFR. We then made an offer on PVB and it passed easily. PVB has not yet been bought back in ROFR so it was a less stressful wait. Even though PVB was a higher buy in cost, the dues were cheaper and the contract was longer. If you are looking for studios it is a great resort. We loved our first stay there in March and are so glad that’s where we ended up buying.

Good luck with your search!

 

[Noodlez]

Regarding the tax, this depends on where you're based. I live in the UK and we don't have to pay tax in the US. This is one of the reasons that a lot of the UK owners prefer to use Davids (https://dvcrequest.com/). I'm not sure exactly how it works with US based brokers but they do report the income then you have to claim the tax back, which is time consuming for such a small amount.

 

[Deb & Bill]

Hello and thank you all for taking your time answering my questions.

i’m not buying to rent out points. I’ m buying to be a dvc owner using dvc. I just want to know that it is possible for international owners to rent out their points if I can’t go some years.

still can’t decide AKL or PVB.

Don't forget you can always bank your points for one year and have double the points the next year. Thus avoiding renting them out. Then you can stay longer or stay bigger. Polynesian basically only has studios (yeah, they have bungalows, but they are point eaters) and AKV has studios, one and two bedrooms in four categories, plus grand villas.