Some Rental Questions From A Newb

[gppnj]

Hi. I've never been on either end of a rental transaction before. I soon will most likely want to rent out some points, and I'm trying to get a sense of how it works. I did read the FAQ on this board, but there are still things I don't understand. (Please note that I am asking these questions so I can understand how point rentals work. This is not an offer from me to rent points. I will post that offer under a separate thread at the appropriate time.)

I am going to have 70 points at VWL that I will want to rent out. The points will have to be used by 1/31/06. Here are my questions:

1. If I start trying to rent out these points on about 8/1/05, will I have a problem finding a renter? I don't have any sense of what the demand is and how soon before the expiration date the points must be.

2. Am I correct that if the buyer is a DVC member, I'd be transferring the points, and if they buyer is a non-member, I'd be making a reservation for that member? Are buyers usually members or non-members? (If I am making a reservation for the person, I doubt that the number of points will come out to exactly 70, so I'm not sure how that would work.)

3. Is it customary for the buyer to pay in full in advance?

I appreciate any help anyone is able to provide. If I go ahead with this, I don't want to make any mistakes, and I also don't want to violate the established etiquette relating to point rentals.

 

[DVCconvert]

2. Am I correct that if the buyer is a DVC member, I'd be transferring the points, and if they buyer is a non-member, I'd be making a reservation for that member? Are buyers usually members or non-members? (If I am making a reservation for the person, I doubt that the number of points will come out to exactly 70, so I'm not sure how that would work.)

3. Is it customary for the buyer to pay in full in advance?

I'll address these questions. First, to date, I have only acted as a rentee.

#2--not necessarily. There is not problem on you making a ressie for another member so long as your points avalible match the need. Often it is done as a transfer as the rentee maybe be needed a ressie that requires say 250 points, and clearly your 70 wouldn't cover it, so if your points are transferred into the rentee's DVC account it acts as if those where their points to begin with. Bottom line, it could work either way.

#3--Terms are the rentor's choice. Personally, everytime I've rented I've paid in full upon reciept of the ressie.

HTH

 

[gppnj]

Thanks for your reply. Any feedback on how easy it will be to rent these points?

 

[disnyrtl]

It is not really hard about renting points. You would go back to the "Trade/Rent" board and post your offer there. (Your message was moved since that board is just for the actual renting/trading)

Usally it is the rentor that sets the terms, after all it is your points.

For when you call in the reservation for the rentee:
I have rented before and generally a certain percentage (say 10%) is sent as a down payment, then the rest is paid on some pre-arrainged schedule. This works for both parties since the rentee can pay in installments and the rentor gets their money. The golden rule is to have ALL the money NO LATER THAN 31 DAYS prior to arrival. This will allow you the chance to cancel the reservation in time to get your points back. Some renters do allow ressies less than 30 days, but require full payment B4 making the ressie.

For when you transfer
About the same type of rules apply; however, you would want full payment prior to transfer. As the previous post states, once you transfer, you loose control of them; therefore, why would someone want to pay you for points they already have?

Some common things to think about
** Ask for references if available

** Most renters use PayPal for the payment (there is a 3% charge for using a CC that is typically pasted on to the rentee)

** Typical charge is $7.50-$13/point (However $9-$10 is the norm). I guess it has a lot to do with the demand, the amount of service you will provide, the amount of perceived risk, etc. You can command a high price if you have a ressie already for apopular place (like BCV) or a popular time frame (Like the first two weeks of December)

** Once you have made the ressie, you can provide the ressie number to the rentee, so they can be sure that you did make it and they can send you the first payment(s). You make the ressie in the rentees name (and address) so the ressie is for the rentee, but YOU CONTROL the ressie the whole time (which of course is different when you transfer points)

As for the demand, it is usally always a good time for renting points. The sooner you can post them in the use year the better. The closer you are to the end of the use year, the harder it is to rent ANDyou may have to sell at a discount to sell them (this is where the $7-$8 range comes from).

If someone barks at the price, you may wish to remind them that they are still getting a deal. For example, a 2BR at OKW during "normal" season costs $642/night OR 22points ($10 * 22 pts = $220/night) or course Friday/Sat is about $480 since it is about 48 points, but stil a better price.

That is a long post, hope it helps.