Should I be renting while Commercial Renting being reviewed?

[Sandisw]

Yes @pkrieger2287 mentioned it was a single issue involving a single owner.

To me that is not screaming commercial as you could get a lot more $ per point renting them yourself

I’m assuming the owner was not currently in good standing then when Disney contacted the renter.

Except he mentioned renting in light of DVC and commercial. Why mention that if the issue didn’t in some way connect to that?

If it was an owner whose account was impacted for another reason, I would think he would have made it clear it wasn’t connected so it reassures future renters.

 

[SL6827]

Anyone else think that just perhaps this is starting to get Disney's attention because it is starting to take away from thier wallet and will continue to do so in the future? Or, is it not really affecting the mouse's purse strings at all?

 

[Sandisw]

Anyone else think that just perhaps this is starting to get Disney's attention because it is starting to take away from thier wallet and will continue to do so in the future? Or, is it not really affecting the mouse's purse strings at all?

I honestly don’t think it’s going to be as big as some think it will be.

But, I think that they may have decided to go after those businesses who have found ways around the rules they were using and it’s just increased in volume and they are getting more complaints

It’s easy to simply to remind owners of an LLC that they can only use the membership for certain people and renters are not included in that group.

And I honestly will be surprised if they do more than that.

 

[Genie+]

Anyone else think that just perhaps this is starting to get Disney's attention because it is starting to take away from thier wallet and will continue to do so in the future? Or, is it not really affecting the mouse's purse strings at all?

I think it’s mixed bag for them.

Rentals can be a stepping stone to buying. DVC is a gateway drug to more WDW trips. Booking a deluxe for $300/nt makes it easier to rationalize all the other high spending lol. It also prioritizes WDW for owners, like they ending up planning other destinations around that instead of in place of that. It was the case for us at least. We wouldn’t have bought if not for dipping our toes in the water first.

So I think there’s value there for DVD and Disney. At what cost though? They probably have estimates on how many people are turning to rentals from cash, how many of them go on to commit to DVC and how many cash rooms are going unfilled by those who won’t. I wouldn’t be surprised if those numbers don’t look as good as they used to for them. And I’m sure they have some mind blowing data where all this is concerned.

DVD and DVC needs to protect the product they are trying to sell for profit and help bring in more new customers that commit to future WDW trips today. If commercial rentals are reducing the personal use experience, that’s a concern too.

 

[eticketplease]

Except he mentioned renting in light of DVC and commercial. Why mention that if the issue didn’t in some way connect to that?

If it was an owner whose account was impacted for another reason, I would think he would have made it clear it wasn’t connected so it reassures future renters.

Yes he mentioned policies and procedures with commercial and they were looking into that aspect however this was about one reservation made by one owner. If it was a commercial renter I would think more reservations would have been affected.

 

[Sandisw]

Yes he mentioned policies and procedures with commercial and they were looking into that aspect however this was about one reservation made by one owner. If it was a commercial renter I would think more reservations would have been affected.

Not if the owner spreads around where they rent and how they rent…they may not have had any other rentals with them still in play….meaning, at that point, it was the only one that was listed with this broker.

 

[eticketplease]

Not if the owner spreads around where they rent and how they rent…they may not have had any other rentals with them still in play….meaning, at that point, it was the only one that was listed with this broker.

That is certainly a possibility but I still believe it is an isolated incident as we haven’t seen anything else. Also I would assume brokers business is from 80-90% non commercial renters.

As a non commercial renter I used a broker as I didn’t want to have checking for people or have to answer no I can not book SSR 11 months out with BCV points. (I’m not sure that would be asked but when debating on going with a broker or doing it myself I looked at the rental board and there some crazy requests)

 

[Sandisw]

That is certainly a possibility but I still believe it is an isolated incident as we haven’t seen anything else. Also I would assume brokers business is from 80-90% non commercial renters.

As a non commercial renter I used a broker as I didn’t want to have checking for people or have to answer no I can not book SSR 11 months out with BCV points. (I’m not sure that would be asked but when debating on going with a broker or doing it myself I looked at the rental board and there some crazy requests)

Not saying it was not an isolated incident for this situation. But just saying that it appears that DVC has canceled a reservation that was related to it.

I am pretty sure that you have owners who may be renting a lot of points who do use brokers because they don’t consider themselves violating the rules and may be using that 20 reservation threshold as their reason.

I think assuming someone renting DVC as a business isn’t using a broker is not an accurate assumption…but then again, DVC has said that it isn’t common practice that owners are doing it.

 

[eticketplease]

I think assuming someone renting DVC as a business isn’t using a broker is not an accurate assumption

Never assumed that.
I am assuming that the majority of those in the business of doing these commercial rentals are not using a broker.

I certainly could be wrong but that is my assumption.

Also I would assume brokers business is from 80-90% non commercial renters.

 

[Sandisw]

Never assumed that.
I am assuming that the majority of those in the business of doing these commercial rentals are not using a broker.

I certainly could be wrong but that is my assumption.

My apologize then as I misunderstood. But, right now, I certainly wouldn’t be renting if I had reservations since no one knows what will happen.

 

[pzw90]

I think it’s mixed bag for them.

Rentals can be a stepping stone to buying. DVC is a gateway drug to more WDW trips. Booking a deluxe for $300/nt makes it easier to rationalize all the other high spending lol. It also prioritizes WDW for owners, like they ending up planning other destinations around that instead of in place of that. It was the case for us at least. We wouldn’t have bought if not for dipping our toes in the water first.

So I think there’s value there for DVD and Disney. At what cost though? They probably have estimates on how many people are turning to rentals from cash, how many of them go on to commit to DVC and how many cash rooms are going unfilled by those who won’t. I wouldn’t be surprised if those numbers don’t look as good as they used to for them. And I’m sure they have some mind blowing data where all this is concerned.

DVD and DVC needs to protect the product they are trying to sell for profit and help bring in more new customers that commit to future WDW trips today. If commercial rentals are reducing the personal use experience, that’s a concern too.

An interesting approach they could take is DVD/DVC renting the points out to non members, and if they chose to purchase they can get a discount on their purchase for the same amount they paid minus the points they used for said trip (use current UY and borrow from next if you have to). With caveats that the discount can’t exceed the amount of points purchased, etc. Kind of a mix of magic beginnings, welcome home, and selling a stripped contract.
But this won’t work as it would cannibalize on their current sales with the paltry incentives for non members

 

[CarolynFH]

An interesting approach they could take is DVD/DVC renting the points out to non members, and if they chose to purchase they can get a discount on their purchase for the same amount they paid minus the points they used for said trip (use current UY and borrow from next if you have to). With caveats that the discount can’t exceed the amount of points purchased, etc. Kind of a mix of magic beginnings, welcome home, and selling a stripped contract.
But this won’t work as it would cannibalize on their current sales with the paltry incentives for non members

Actually, that’s similar to the incentive when we bought. We were staying seven nights in a room at Poly, which at the time would have cost 98 points if booked via DVC. So 98 points times the pp list cost was subtracted and brought our pp cost to $62.50.

 

[Sandisw]

An interesting approach they could take is DVD/DVC renting the points out to non members, and if they chose to purchase they can get a discount on their purchase for the same amount they paid minus the points they used for said trip (use current UY and borrow from next if you have to). With caveats that the discount can’t exceed the amount of points purchased, etc. Kind of a mix of magic beginnings, welcome home, and selling a stripped contract.
But this won’t work as it would cannibalize on their current sales with the paltry incentives for non members

They did something last year sort of like this. It was any stay at Disney and I even think cruising counted.

Owners got a Welcome Home credit…and the magical beginnings program allowed new buyers to sell back the first set of points, which, lowered the price.

 

[AstroBlasters]

If we rent points for a trip this year, should we be concerned that we happen to be matched with a commercial renter which would put our trip in danger? Are we better to wait until Disney does whatever they plan on doing?

Message boards turn into echo chambers and blow things out of proportion. I wouldn’t worry about it unless you are getting a spec rental.

 

[crisi]

Everybody has to weigh their own risk here.

Personally I doubt DVC would do mass cancellations last minute. More likely, whatever they do this year, considers the impact to unwitting rental customers. Not sure how but at least something that gives renters time to pivot or some kind of back-up plan, especially if cancellations are more widespread than anything seen before.

Money already paid… that would be my concern. Even if DVC gave a 6 months heads up a reservation wasn’t legit because the owner broke commercial rental rules, getting any money back could be a headache. Trying to find a new room and having to fight for refund would stink.

That makes me agree Brokers might be the safer route over Facebook for 2 reasons. Some brokers’ contract wording explains how they’ll compensate should something go wrong, vs having little recourse with the FB transaction if the personal owner plays refund games. Facebook also draws higher profit margins by cutting out the broker middlemen, so more commercial renters likely use FB than Brokers.

Getting your money back from a broker or owner is So Not Disney's Problem. They don't worry about you getting your money back if your airfare is cancelled, if your car rental has issues. They might be slightly concerned about optics, but frankly an alligator eating a child didn't cut into their profits, I think they could weather a few rental cancellations to put a chill on the market.

 

[Genie+]

Getting your money back from a broker or owner is So Not Disney's Problem. They don't worry about you getting your money back if your airfare is cancelled, if your car rental has issues. They might be slightly concerned about optics, but frankly an alligator eating a child didn't cut into their profits, I think they could weather a few rental cancellations to put a chill on the market.

Clearly what I thought I wrote and what you read are 2 different things.

 

[Sandisw]

Clearly what I thought I wrote and what you read are 2 different things.

I think we would all like to believe that DVC would consider the impact to an unsuspecting renter when this crackdown happens.

But the reality is, I doubt they will if you really have certain owners who have 100s to 1000s of rentals already in the books.

 

[crisi]

Clearly what I thought I wrote and what you read are 2 different things.

I misinterpreted, I read your two paragraphs as being connected and they obviously weren't. My apologies

 

[RickNJane]

I bet that Disney has already done most if not all of data gathering at this point. Disney is very secretive. When I heard they brought up commercial renting at the board meetings, my first thought was they are already doing something. The meetings were just a way to soft announce that a crack down was coming (or ongoing). Perhaps it was to see if there would be a fall off in renting without actually doing anything. What ever it is, I don't think we will hear anything else until the crackdown has actually occurred. That is as long as a change in the agreements is not needed. Then legally I think they must tell us.

 

[robinb]

Didn't realize anyone was waiting on my response (and I do have a life outside Disboards). I didn't say it was fact, I said "word says". That was from comments on Disboards about rentals being cancelled.

Please don't pass on rumors and conjecture of what might happen from other threads. I've been a DVC member and a DISer for over 2 decades and I've never read of a reservation getting cancelled because of commercial renting. I'm not saying that it couldn't happen or it won't happen, but it's not happening now and you're just scaring the OP.