Renting Question

[jb84]

I notice that the average going rate for a rental is $10-$12 depending on terms. Just curious if that has changed at all of the 15 years? Increased/decreased or remained the same?

 

[browniemtb]

From what I have read it seems as though its remained around $10 per point for many years. Not sure why with all the increasing cost of dues and how regular reservations have significantly increased as well over the last 15 years.

 

[Chuck S]

The average, many, many years ago was about $8. It jumped to $10 when new DVC contracts, for a promotion, had the option of current use year points or $10 off. Many folks figured that Disney sort of set the bar at $10 at that time.

Of course, market factors set the price today. Besides "bargain hunting" by renters, there are also risks and less housekeeping. The rental process has to be seen as a value to those renters given those circumstances. And at $10 for most members, it still is worthwhile to rent.

If dues increase drastically, rental prices will climb, but there will likely also be a smaller pool of people seeking points. Supply and demand yields the market price.

 

[tomandrobin]

The price seems to be stuck at the $10 pp mark. Not sure if that is because its an easy round number or that is all the market bears. You would think that once you factor the coust of dues, you are actually only netting $5.88 (SSR), $5.60 (OKW), $5.38 (AKV), $5.37 (BCV), $5.27 (VWL), $5.15 (BWV), $5.02 (HH) and $4.37 (VB). I have only been an owner for just a little over a year and half, and i haven't seen how the past history of rentals have gone. But, it seems to me the rental rates should gone up to at least $15 pp by now.

 

[kimberh]

I guess, it depends on where you rent or post where you have a room for rental. There are DVC owners getting $13-14.50 and more. I don't see how a room can be rented for $10.00 when you factor in today's prices for a purchase plus maintenance fees. It's a loss at that price. How can we pay $96. or more (depending on the incentive we took) plus dues? Why bother?

I think if you bought in at the early stages of DVC, you probably are fine with renting for $10.00, but I paid a whole lot more for mine than those prices for mine. I wish I had convinced myself to purchase in at $55-$60.00 per point, but I just couldn't convince myself to do that, then. I even called and received the package. I just didn't understand.

 

[Kickapoo Joie Juice]

Because when you try and raise the price per point your friends and family are like, hey, what gives, don't you like me anymore?

I think when Disney raises the prices at the values so nobody can get a room for less than 100 a night, then you'll see the price/point go up on the DVC's, because at that point I think it would become ludicrous to stay at a DVC (or anywhere on-site) for that cheap.

 

[robinb]

The price seems to be stuck at the $10 pp mark.

I disagree that the price is stuck at $10 per point. Sure, some distressed points are still at $10 but I have seen many more at $11 and $12 than last year.

FWIW, I have not rented out my points for less than $12 per point in over a year and have only been turned down by one bargain hunter.

 

[tomandrobin]

I went over to the R/T board today, and you are right. The rent per point has crept up to $11-$12 per point.

I also noticed, there are alot more more people asking for reservations and points, then there were people renting points. Looks like a sellers market!! Take that real estate!

 

[kimberh]

I went over to the R/T board today, and you are right. The rent per point has crept up to $11-$12 per point.

I also noticed, there are alot more more people asking for reservations and points, then there were people renting points. Looks like a sellers market!! Take that real estate!

My view on the sellers market is...there certainly is one! Disney has had a rate increase on their rooms. This has put even more people searching for discounts. I hope DVC owners realize this.

 

[crisi]

My view on the sellers market is...there certainly is one! Disney has had a rate increase on their rooms. This has put even more people searching for discounts. I hope DVC owners realize this.

Also, Disney's "other best kept secret" that you can rent rooms from members at a fraction of the costs - is all over the guidebooks (well, not Birnbaums) and internet sites - many of them pointing to our own rent trade board.

 

[robinb]

I also noticed, there are alot more more people asking for reservations and points, then there were people renting points. Looks like a sellers market!! Take that real estate!

I think that is also a function of the rules for posting on that board. A DVC member may only post once per year (I think, or maybe twice I'm not 100% sure) while they can respond to many people looking for points/reservations via email and/or PMs. I have never posted that I have points of sale, I always contact someone looking for points.

 

[salmoneous]

Not sure why with all the increasing cost of dues and how regular reservations have significantly increased as well over the last 15 years.

Prices are set by market forces, not by seller's costs. Period.

Right now the flood of developer's points is probably keeping rental prices low. Should Disney cut those off, expect to see rental prices go up.

Also, keep in mind that $10 (or $11/12) is the going price for sellers who want a quick and easy transaction. Sellers willing to put in work, get certified, go the extra mile, etc. can (and do) get significantly more.

Note - you can't go by posts in our rent/trade board to gage supply and demand. Most sellers don't post, but reply via PM to renter's posts.

 

[todd222222]

Also, keep in mind that $10 (or $11/12) is the going price for sellers who want a quick and easy transaction. Sellers willing to put in work, get certified, go the extra mile, etc. can (and do) get significantly more.

how do you get certified?

I posted that I wanted to rent points and when I received a PM from a active member who sounded like she knew what she was doing and asked for $11/point I jumped on it.

i would much rather deal with someone with experience then someone without.

Me on the other hand was a first time renter and was very nervous, so the fact that she was active on here helped a lot.

I did my research and knew what I was talking about, which I sure made her feel better about the situation. All in all it's been very smooth, can't wait for my trip in January.

 

[robinb]

how do you get certified?

I think he's talking about "Square Trade Verified" on eBay.

I think you can get more per point on eBay, but they you have to pay eBay fees and PayPal fees which can be quite a bit. I looked at a recent auction for 5 days at OKW in Adventure/Choice season which sold for $599. Once you subtract the eBay and PayPal fees the seller got around $560 for the 5 days which costs 40 points. That's about $14 per point. I'm not sure it's worth the extra $2 per point to deal with eBay (and their buyers!) for me.