What is the most desirable DVC to rent points at

[Dean]

Just a heads up, Disney has stated that they are looking closely at contracts that rent out more than 2 years worth of points in any 5 year period. I remember getting an email about it a while back, reminding everyone that DVC is intended primarily for your personal use and not as a way to make money.

I'm having great difficulty believing this information, you must be remembering it wrong.

As for most desirable, it really depends on perspective. I'd say BWV is likely the most requested overall likely due to location, standard view and BW view. I think overall AKV is more requested than BCV from what I've seen.

 

[vicki_c]

I'm having great difficulty believing this information, you must be remembering it wrong.

As for most desirable, it really depends on perspective. I'd say BWV is likely the most requested overall likely due to location, standard view and BW view. I think overall AKV is more requested than BCV from what I've seen.

Isn't cmwade a CM? (Hate to assume.). I recall a while so that CM/owners got a notice of some kind reminding them they were not allowed to rent their points, apparently part of the CM discounted DVC contract. That was a few years ago I think and I don't recall the details, but remember it being talked about on the boards.

 

[castleri]

My understanding is that a rental broker was having owners add his name to their accounts so he could make rentals on the owners behalf. Disney took exception to this and made the rule that a person can now only be listed on 4 accounts as an associate at one time. Before there wasn't a limit.

Some think that Disney thought that the arrangement might raise legal issues, others say that Disney didn't like the broker making money so close to the mouse.

Bill

That is what I remember also and it didn't stop him from doing business - just has a different way of handling the reservation process now.

 

[JessLCH]

My understanding is that a rental broker was having owners add his name to their accounts so he could make rentals on the owners behalf. Disney took exception to this and made the rule that a person can now only be listed on 4 accounts as an associate at one time. Before there wasn't a limit.

Some think that Disney thought that the arrangement might raise legal issues, others say that Disney didn't like the broker making money so close to the mouse.

Bill

Thanks for that explanation. I was not even aware that one could have any name on the account aside from the owners listed on the deed. (Still not an owner, but working on it.)

 

[Deb & Bill]

100 BLT or GFV points are not going to very far at BLT or GFV. And that is what non-members will want to use them for. Why pay the dues at those locations if you don't use the points there? You can't even book a week in a studio during the lowest point time at BLT. At GFV it will be even more.

Same for BCV. You need more than 100 points for a week at the lowest point time for a studio.

You might as well buy SSR and book at any resort at seven months out.

 

[Paging Tom Morrow]

Hi,

I'm thinking of getting 200 points, we are only 2 so a studio would suffice and we intend on only going every 2nd yr.

So we would rent out the remaining points - around 100 per year, so what would be the best location to make these points the most desirable?

Have you done an analysis on how long it will take to break even? Points are typically renting at about $12 per point. When you factor that annual dues are approaching $6 per point, that leaves a net of just $6 per point. If you buy resale, at about $85 per point (BWV or BCV), that will mean it will take you over 14 years to break even, and that's not counting the opportunity cost of where you could have invested that $8500 instead.

If you plan on buying direct from DVC, the numbers get even worse.

If you plan on buying direct from DVC and you finance, I recommend you visit a financial planner instead!

BLT: 200 points @ $165 per point, with 10% down and 10.99% APR and $500 in closing costs means you'll pay a total of $50,318 or almost $251 per point after factoring in the interest! With a rental profit of $6 per year for the extra points, it would take 42 years to break even!

 

[Dean]

Isn't cmwade a CM? (Hate to assume.). I recall a while so that CM/owners got a notice of some kind reminding them they were not allowed to rent their points, apparently part of the CM discounted DVC contract. That was a few years ago I think and I don't recall the details, but remember it being talked about on the boards.

They look at anything over 20 a year not in the owners name and this was the letter that went out a few years ago. Limiting to 2/5 of the points would not be legally defendable the way the POS reads IMO. The "intended for personal use" in the POS is required by FL law as a means of preventing sales pitches of high resale/rental returns, not as a limitation of usage.

 

[sdefalco]

100 BLT or GFV points are not going to very far at BLT or GFV. And that is what non-members will want to use them for. Why pay the dues at those locations if you don't use the points there? You can't even book a week in a studio during the lowest point time at BLT. At GFV it will be even more.

Same for BCV. You need more than 100 points for a week at the lowest point time for a studio.

You might as well buy SSR and book at any resort at seven months out.

thanks for the tip

 

[sdefalco]

Have you done an analysis on how long it will take to break even? Points are typically renting at about $12 per point. When you factor that annual dues are approaching $6 per point, that leaves a net of just $6 per point. If you buy resale, at about $85 per point (BWV or BCV), that will mean it will take you over 14 years to break even, and that's not counting the opportunity cost of where you could have invested that $8500 instead.

If you plan on buying direct from DVC, the numbers get even worse.

If you plan on buying direct from DVC and you finance, I recommend you visit a financial planner instead!

BLT: 200 points @ $165 per point, with 10% down and 10.99% APR and $500 in closing costs means you'll pay a total of $50,318 or almost $251 per point after factoring in the interest! With a rental profit of $6 per year for the extra points, it would take 42 years to break even!

I was looking at SSR and OKW - but wanted to know if it was wise to buy more points at a more desirable DVC resort in order to rent out the excess points that i would have - but from seeing how much a studio goes - I would need more than 200.. Thanks

 

[Dean]

I was looking at SSR and OKW - but wanted to know if it was wise to buy more points at a more desirable DVC resort in order to rent out the excess points that i would have - but from seeing how much a studio goes - I would need more than 200.. Thanks

You will get varying opinions on this. IMO, it makes no sense to buy extra points with the intent of renting them out long term unless you simply want to do it on a big scale over a long term (risky). Buying something like GF at a higher price AND buying more points to rent, also doesn't make sense. About the only time I think it makes sense to buy with the intent of renting is where you know you'll need more points in a few years (like moving up to a 2 BR) but you want to buy a single larger contract now. I would keep it clean and not complicate your life.

Disclaimer, I do have points I don't normally use and rent out but it's because I owned them already and have elected to keep them (so far at least) rather than sell part of them. I keep them to have them to use when I need to rather than with the intent of keeping them to rent.

 

[LSchrow]

BLT: 200 points @ $165 per point, with 10% down and 10.99% APR and $500 in closing costs means you'll pay a total of $50,318 or almost $251 per point after factoring in the interest! With a rental profit of $6 per year for the extra points, it would take 42 years to break even!

nicely explained

OP - i agree with PPs:
the financial investment (and risk) just to recoup your monies decades from now really isn't worthwhile - you're better off investing that money elsewhere. buy what you need (you can always add-on), where you want to stay, and add the extra money into a more diverse (and hopefully) lucrative portfolio.

 

[crisi]

If you borrow and bank, you can splurge every few years to take friends without buying extra points and taking on all that additional risk and bother.

The other thing to keep in mind is that as an owner, Disney can hold you liable for unpaid bills or room damage to a room rented using your points. Also that renting is not risk free. The way it normally works is you book a room and they pay half up front and half some number of days out. If they decide not to go, you'll get to keep the first half, but they won't pay you for the second. If you can rerent the points, you've made more money - but if its close to the end of your use year or rooms are booked up, you could get stuck getting basically dues for your points.

 

[shortypots]

I have AKV, VWL, and GFV points and all are highly demanded. Each resort has their own reasoning for their desirability-

AKV-Concierge rooms, 2baths in 1bd units in Kidani, and Value rooms.
BLT- Walking distance to MK, and Theme park view rooms.
BCV- walking distance to Epcot and HS- highly desirable for F&W festival.
BWV- walking distance to Epcot and HS- highly desirable for F&W festival, Standard view rooms-very inexpensive point wise
OKW- cheapest rooms next to AKV value so fewest points needed, also the largest rooms- 2beds in studios.
SSR- Treehouse villas, distance to DTD.
GFV- newest and smallest resort, very difficult to get into if you do not own there
VWL- awesome at Christmas time and small, hard to get into during holiday season without owning there.

I recently used David's Vacation rentals with my AKV points and I must say, it could not have been easier.They let me know when they have a customer that needs a place, I book the reservation, then I get half the money up front, half when they check in. David's collects all the money up front, so if they cancel, I would still get the money I think... Not entirely certain. But the 2nd half after they check in is to make sure I do not try to cancel their reservation. I have to admit, they made it incredibly easy to rent my points out, and I feel like I do not have any risk.

 

[OrangeCountyCommuter]

I also think that eventually Disney will crack down on renting especially the brokers. My guide hinted at this saying legal was looking at it

So don't assume the current model will remain the long term model. No, they can't stop us from renting but they can make it much harder and they can say the 'brokers' are "commercial" (and honestly those brokers won't have leg to stand on then,it's commercial pure and simple!)

 

[shortypots]

I don't think so on the brokers. They are only finding us renters. We still make the reservations. I think it would be really hard to crack down on them. Although, Disney might find a way to offer an internal rental system so they can make the money rather than the brokers.

 

[Mickey'sApprentice]

Just adding that boardwalk view is another reason to make BW high demand.

 

[kim532]

I don't think so on the brokers. They are only finding us renters. We still make the reservations. I think it would be really hard to crack down on them. Although, Disney might find a way to offer an internal rental system so they can make the money rather than the brokers.

That's an interesting idea. Disney helping us rent our points? I can't imagine how that may play out, but that would be a neat perk.

Kim

 

[shortypots]

That's an interesting idea. Disney helping us rent our points? I can't imagine how that may play out, but that would be a neat perk.

Kim

Disney doesn't like it when someone else makes money on something they can bring in house. Although, they still haven't created their own resale market, so maybe I am wrong on them bringing renting in house.

 

[disneygirly]

Why would they create their own resale market? Who would buy Direct if you could buy Resale directly from Disney at a discount? Actually Disney does have a resale market. It is called ROFR. They decide which contracts they want to buy, then they just repackage and sell them as new again at a HUGE profit. Aren't there long wait lists with Disney to purchase BCV at RETAIL prices?

 

[Deb & Bill]

I don't think so on the brokers. They are only finding us renters. We still make the reservations. I think it would be really hard to crack down on them. Although, Disney might find a way to offer an internal rental system so they can make the money rather than the brokers.

They would rather the members' points go unused, so they can rent out the villas for cash.

And they already have an internal rental system, but they use their points to sell at seven months out for $15 a point up to 24 points to members once a year.

Disney doesn't like it when someone else makes money on something they can bring in house. Although, they still haven't created their own resale market, so maybe I am wrong on them bringing renting in house.

Why would they create their own resale market? Who would buy Direct if you could buy Resale directly from Disney at a discount? Actually Disney does have a resale market. It is called ROFR. They decide which contracts they want to buy, then they just repackage and sell them as new again at a HUGE profit. Aren't there long wait lists with Disney to purchase BCV at RETAIL prices?

That is Disney's resale market. They buy back under ROFR or take back by foreclosure, repackage and sell them for an inflated price.