Renting Out Your Points

[AstroBlasters]

I think you may misunderstand where those people who are renting points for a living are getting their points from. The companies selling dvc and renting out dvc would love for you to buy contracts and then engage them to rent out your points. If they're the ones saying the market is soft, I don't think I'd eye-roll them.

What is funny to me is that the broker wasn’t trying to talk anyone out of renting points. They were telling renters that the requests are being filled quickly and that it is a good time to rent.

The rental market will saturate if enough people buy AKV,OKW,SSR to rent as SAP points.

 

[MFMont]

I think you may misunderstand where those people who are renting points for a living are getting their points from. The companies selling dvc and renting out dvc would love for you to buy contracts and then engage them to rent out your points. If they're the ones saying the market is soft, I don't think I'd eye-roll them.

I am not misunderstanding at all. They are retailing your points at $21 to $23 per point. Those prices are certainly slow because travel is softening and more points are hitting the rental market. A lot of those people realize that they can list just above what the rental companies pay but are $2 or $3 less than the rental companies and those point rent very easily. As I said above, I rented BWV points last week at $18pp and they were gone in 2 hours.

Now the other point I would make is that these resellers all own tons of points that they rent out personally as well. I would venture they make far more profit personally on the points they own than what they make renting your points. As the market slows, who's points do you think are renting first? They lose nothing if you list your points with them and they don't rent them.

It would seem to me that this little cottage industry has a lot of conflicts of interest.

 

[supersnoop]

Now the other point I would make is that these resellers all own tons of points that they rent out personally as well.

Do you have deeds to back that up? Owning for a commercial purpose is specifically prohibited in the contract.

 

[AstroBlasters]

I decided to use the board sponsor to rent out excess VGC point for a recently purchased contract that has points expiring before I’ll be able to use them. I was able to instantly see a list of reservation requests and “claimed” one within minutes of creating a log-in and completing a W-9 form.

 

[Face426]

We bought at Riviera. So far it's been pretty easy to get a premium price renting. I think it'll get easier as more folks own resale and won't be able to book there at 7 months. As someone else said BCV is pretty popular for rentals.

 

[Salty5204]

Is buying at Copper Creek and booking Christmas season studios with points I don't plan on using in a given year and then renting them a viable strategy? From what little inventory I can find, people are asking upwards of $25/pt for reservations like this. But what I can't see is what rentals actually go through, and at what price.

 

[MsChristy12]

Is buying at Copper Creek and booking Christmas season studios with points I don't plan on using in a given year and then renting them a viable strategy? From what little inventory I can find, people are asking upwards of $25/pt for reservations like this. But what I can't see is what rentals actually go through, and at what price.

CCV and BRV are definitely the most popular for the Christmas season. I think AKV is right behind it if people can't get anything at WL. (someone correct me if I'm wrong on that) If you go to the DVC rental store https://dvcrentalstore.com/ and browse the confirmed reservations, based on their total price then refer back to the points chart how many points they required, you can figure how much it is per point they are renting for. I have seen anything between $23-30/point depending on the dates and type of villas (last week of December is the most expensive vs. the first 2 weeks of December).

 

[sndral]

Do you have deeds to back that up? Owning for a commercial purpose is specifically prohibited in the contract.

The biggest risk w/ buying to rent IMO, is that DVC can change the way they interpret & enforce the ‘no commercial use’ clause.
Commercial use is expressly prohibited, but AFAIK DVC hasn’t really enforced that prohibition - @ one point their policy was that anyone renting more than 20x a year had to disprove commercial use.
However, just because DVC hasn’t enforced it thus far doesn’t mean they couldn’t choose to change how they enforce it in the future and do something like what I’ve read Wyndham has done @ Bonnet Creek w/ owner priority & block out dates.
DVC’s rationale for adding resale restrictions was that direct owners complained about access, even though that doesn’t necessarily pencil out. They could use the same rationale to more aggressively limit renting.
I doubt the mega renters are buying direct points to rent out & DVC has no concerns about eroding resale buyer’s value ATM.
DVC rentals do compete w/ Disney’s cash resort rentals, so it wouldn’t surprise me if they changed their approach to commercial use & became more aggressive at enforcing that clause.

 

[MsChristy12]

The biggest risk w/ buying to rent IMO, is that DVC can change the way they interpret & enforce the ‘no commercial use’ clause.
Commercial use is expressly prohibited, but AFAIK DVC hasn’t really enforced that prohibition - @ one point their policy was that anyone renting more than 20x a year had to disprove commercial use.
However, just because DVC hasn’t enforced it thus far doesn’t mean they couldn’t choose to change how they enforce it in the future and do something like what I’ve read Wyndham has done @ Bonnet Creek w/ owner priority & block out dates.
DVC’s rationale for adding resale restrictions was that direct owners complained about access, even though that doesn’t necessarily pencil out. They could use the same rationale to more aggressively limit renting.
I doubt the mega renters are buying direct points to rent out & DVC has no concerns about eroding resale buyer’s value ATM.
DVC rentals do compete w/ Disney’s cash resort rentals, so it wouldn’t surprise me if they changed their approach to commercial use & became more aggressive at enforcing that clause.

That's always on the back of my mind Disney can change any rules/policies at any given time, so that's what led me to owning a smaller contract that's very manageable even if I can't rent out the years that we aren't using the points ourselves.
Besides block-out dates, Wyndham even has a policy on their site that basically says, if they run into very high demand weeks and your have your reservation as the owner's guests, they have the rights to cancel your reservation so the owners will have priority. Our last two stays there as guests (family members are owners), I was so nervous that I would get that email one day! But thank goodness it didn't happen to us.

 

[lilsonicfan]

Do you have deeds to back that up? Owning for a commercial purpose is specifically prohibited in the contract.

An interesting point about "commercial purpose" is the board sponsor or other sites buying up listings to resell. That's entirely a commercial purpose even if they aren't using the points for rental (though I suspect they'd have to on some older listings).