What is the most in-demand use year if I want to maximize point rental income?

ViperRT10Matt

Earning My Ears
DVC Silver
Joined
May 15, 2019
I am a longtime DVC member. I plan on adding a second contract to my membership via the resale market so I can have flexibility between two home resorts. I would use this occasionally for my family but would also rent out the points on the years we don't use it.

I'm totally flexible with what time of year my family goes, so use year is not a concern to me. However, I'd want to make my rental points as attractive as possible for those off years. Are certain user years better than others?

Thanks,
Matt
 
Wouldn't it matter to people looking to utilize the 7-11 month home resort sweet spot? If my Use Year is september, I'm most attractive to people visiting between April and August. I guess that sounds pretty good as it covers Easter break and all of summer. Only would be bad if they're trying to get winter holiday week.
 
UY has nothing to do with attractiveness to a renter, in fact, most renters probably have no clue what a UY is.

They want a hotel room they dont care about anything else.

It has no effect on 7 to 11 month sweet spot.
September UY is most attractive to people visiting between march and august? Not in the least. It is irrelevant.
 


Correct. As you can always just borrow points from the following year to complete the rental if needed.
 
UY has nothing to do with attractiveness to a renter, in fact, most renters probably have no clue what a UY is.

They want a hotel room they dont care about anything else.

It has no effect on 7 to 11 month sweet spot.
September UY is most attractive to people visiting between march and august? Not in the least. It is irrelevant.
agree 100%
 


I am a longtime DVC member. I plan on adding a second contract to my membership via the resale market so I can have flexibility between two home resorts. I would use this occasionally for my family but would also rent out the points on the years we don't use it.

I'm totally flexible with what time of year my family goes, so use year is not a concern to me. However, I'd want to make my rental points as attractive as possible for those off years. Are certain user years better than others?

Thanks,
Matt
The only benefit that the "best" use year offers is a form of "free cancellation insurance" for the OWNER.

If one travels early in the use year and has to cancel a reservation, the owner of the points has a longer period of time to either reschedule the vacation or bank the bank the points. If one travels late in the use year, there is less time to bank or reschedule and a greater chance of points expiring before they can be used.

Because few owners allow renters to reschedule or get a refund in the event of a cancellations, this is of no value to renters.

If you plan to use the add-on contract yourselves at least some of the time, get the same use year you already have or buy a different use year if it would work better for your family. Otherwise, find the best value & choose a resort that commands a premium in the market.
 
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The best UY for a renter is the one that is available. Renter wouldn’t care if it’s a JAN, MAY, JUL or NOV UY. If you can book them a reservation, they win.

Oh, and to everyone else, don’t buy to rent. It’s like Winnie the Pooh investing in a business selling honey. I have a much more apropos analogy about your supply, courtesy of the Notorious B.I.G., but probably too obscure for this crowd.

There are much better places to put your money to work.
 
Not a DVC owner yet but I would think the only way I would rent my points out would be if circumstances were such that I knew I was going to lose points. To get a minimal return would take some time wouldn't it? I think a more profitable way would be to broker the rentals....middle man it?
 
Not a DVC owner yet but I would think the only way I would rent my points out would be if circumstances were such that I knew I was going to lose points. To get a minimal return would take some time wouldn't it? I think a more profitable way would be to broker the rentals....middle man it?

Brokers are paying $13.50 per point. Renting on your own tends to net at least $16 per point. Multiply that by a couple of hundred points and you can see why people want to rent out on their own.
 
I have Use Years of September, February and March.

My September Use Year points work best for people who rent my points for the Food and Wine Festival. Then, if they have to cancel, they can still use those points up until the end of August of the following year.

That is the main benefit of a Use Year in rentals. Giving your Renters a cushion, in case their plans change drastically. So, ask yourself, Is there a particular month or two when you will be making most of your rental reservations? Then consider getting a Use Year that starts a month or two before that.

Six of my Eight contracts have September Use Year and I find it is easiest (and best?) and often gives the highest rental price to rent out during the months of the food and wine festival at the 10-11 month window, for Oct, Nov, and December.
 

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