Why are rental costs going down?

[bunny]

I was thinking about renting some of my points for next year to pay for a cruise. I just checked the Rent/Trade board and noticed the current going price is $9.00. There are even some people renting for $8.00. I only bought DVC a few months ago and can't rent for $8.00 and cover my costs. When I rented points last year to try DVC, all points were going for $10 or more. What is happening to lower the rental price?

 

[Dizzy4Dizney]

It really depends on when the points expire and how fast people need money. If they expire soon, people tend to lower the price. When I was renting points, I never found them for $8.00 a point. Wish I had!

 

[bunny]

I was thinking maybe people are trying to make a quick buck before Christmas or before they need to pay their dues in January.

 

[kidskid]

Maybe the sellers are just being kind. Sometimes good deeds makes the soul feel good.

 

[sjdisneywedding]

I was thinking about renting some of my points for next year to pay for a cruise. I just checked the Rent/Trade board and noticed the current going price is $9.00. There are even some people renting for $8.00. I only bought DVC a few months ago and can't rent for $8.00 and cover my costs. When I rented points last year to try DVC, all points were going for $10 or more. What is happening to lower the rental price?

I dont think thats the trend, maybe just the current circumstances for those renting. I have been watching the past few weeks and overall got the feeling they were finally starting to go up. I saw alot of 10.50's and 11.00's, very very few 9's and practically no 8's.

 

[CarolMN]

You can't make many valid price assumptions based on Rent/Trade posts. Details of the "final" agreements are never published - at least I haven't seen any, LOL. I chuckle to myself when I see some of the posts looking for cheap points - especially when I know what they want is not even available.

If someone is looking for a last minute trip, he/she may be able to find an owner with points about to expire who is wiling to rent for $8 or $9. Availabiility for those last minute trips can be a problem, so the time of the year really matters. Doesn't meatter if you're willing to give the points away if there is no availability.

IMHO, owners who are not desparate and know what they are doing can and do rent for at least $10. There are several that rent for $12, $13 and more. Some offer reservations at a % discount rather than a per point price.

Several owners rent to family, friends or co-workers and do not use the DIS board to find customers. There are many ways to find customers other than the DIS. Several owners use ebay. Every post that I have read about renting on ebay said that points/reservations go for a lot more there.

The price you decide to rent your points for is entirely up to you. Just wish the ultra bargain hunters well if they contact you and suggest they look for someone else. If you are patient and professional, you should not have any trouble whatsoever renting for at least $10/point. MHO. YMMV.

Best wishes -

 

[Maria395712]

I don't see the going price as $9.00 no way at least $10.00 and I have rented from $13.00 - $14.88 a point. I am starting to rent as a set price per night not per point I rented dec 4-8 at BWV stan studio at $130.00 per night great discount and jan 8 -13 stan studio at $120.00 anight great discount
maria

 

[AFMom]

I've never gone below $10 - never will, and am thinking that I'm raising the price to at least $11 or so with our costs for SSR and with maint fee increases!

 

[pentex]

I sold for $9.50 and the only reason was because I'm a teacher who had two days off and wanted to make all sales within that two day period. I figured if I brought it down a bit, I'd sell faster and I was right. And I had four excellent buyers!

 

[PKS44]

Why are gasoline prices coming down? Why did they go up? why are medicines so expensive? It is all about supply and demand...I have rented points out for as low as $8 a point when my in-laws cancelled on me with less than 40 days before a trip...I still made a profit at that price, but I did not want to get stuck with those points...in general the supply and demand are such that $10 a point seems to still be the prevailing rate....If you have little time the rate will be lower...if you have lots of time and or a specific reservation at a tough time of year you can get more....

Paul

 

[Pluto 2]

some people dont want to make money they just want to make even on the points. 8 dollars seems like a fair price if you just want to make even and have a little bit for your trouble, than to claim it on your taxes. if i ever had to sell my points i would just want to break even. i wouldnt try to make money off of it, the person renting my points they are helping me out also so i dont lose the points, i will get what i paid for them. initial costs, interest and maintenance fees

 

[bicker]

It's a hard line to draw, though. A fair price, IMHO, is how much Disney would charge for the same room -- maybe a little less. After all, the buyer is saving the hotel tax, so everybody gets something.

These DVC points trading boards actually devalue the rentals, because it is easy for buyers to play sellers off each other. That's a great thing for the buyers. Don't get me wrong; for lazy sellers, like me, it is wonderful how easy it was to find a buyer, so everyone wins. However, the price we sell at isn't really a fair reflection of the value of what we're selling. I've seen DVC rentals sold through other means that get far closer to the value of the rooms.

 

[PKS44]

It's a hard line to draw, though. A fair price, IMHO, is how much Disney would charge for the same room -- maybe a little less. .

Well- if you go with Disney you get a security and guarantee no renter can ever give you.. also, a much more liberal cancellation policy and daily maid service...those have to be worth something --maybe even a lot more than the taxes you are not paying...

Paul

 

[LakeAriel]

Well- if you go with Disney you get a security and guarantee no renter can ever give you.. also, a much more liberal cancellation policy and daily maid service...those have to be worth something --maybe even a lot more than the taxes you are not paying...

Paul

If I knew what an unbelievable deal I could get renting the "Home away from Home" resorts I would not have bought, but rented. I spent a lot of money to purchase and then pay maintenence, no way am I going to give away points. The renter is the winner. At $10 a point it's a bargain.

 

[bicker]

Well- if you go with Disney you get a security and guarantee no renter can ever give you.. also, a much more liberal cancellation policy and daily maid service...those have to be worth something --maybe even a lot more than the taxes you are not paying

There is a dollar value for those, though. I don't believe that those dollar amounts add up to the difference between what Disney charges and $10 per point. Maybe $15 per point.

 

[Dale-n-Chip]

There is a dollar value for those, though. I don't believe that those dollar amounts add up to the difference between what Disney charges and $10 per point. Maybe $15 per point.

Just because I was running these exact numbers over the weekend. . .

SSR, 1 BR, June 4-11 2006 (Sun-Sun, 7 nights)

Points: 225 (Dream Season)

Expedia: $405/night x 7 nights = 2835 + 11.5% tax = $3161

Rental: at $10, $2250. At $12, $2700. At $14, $3150.

Just to give a concrete comparison. . .

D-n-C

 

[bicker]

Wow... I didn't think I'd guess that close! Cool! However, taking into consideration housekeeping, I think that means we're looking at a value-of price of $13 per point.

But that's for SSR. How much would a 1BR at BWV cost? A significant amount more. Maybe my $15 guess was right on target?

 

[Dale-n-Chip]

How much would a 1BR at BWV cost? A significant amount more. Maybe my $15 guess was right on target?

Who wants to work when I can play DVC. . .

1 BR, June 4-11 2006, Sun-Sun, 7 nights, only this time at BWV.

Points: (Dream Season) Standard View 210, Preferred view 252

Expedia: Only lists what they call 1BR "regular", so I'm going to assume "regular" = Standard View $465/night x 7 nights = 3255 + 11.5% = $3629

Rental: At $10, $2100. At $13, $2730. At $15, $3150. At $17, $3570.

HOLY COW!!! Now, if they mean Preferred instead of Standard, that comes out about $14.50 or so.

Draw your own conclusions, folks. This is just to run some real numbers rather than generalities.

D-n-C

 

[CarolMN]

Rentals that include Friday & Saturday nights have never been all that much of a bargain.

Let's look at the last example for a 5 night night stay - check in on Sunday & out on Friday [

Expedia (BWV 1 Bdrom) $465 * 5 * 1.115 = $2592.38

Pv Weeknight is 28 points per night or 140 points for the 5 night reservaiton.

$10 = $1400. $12 = $1680 $15= 2100

Even at $15, it's a bargain. I'd gladly give up maid service and accept a more restrictive cancellation policy to save nearly $500!

If I were renting, I'd rent the weeknights and pay Disney directly for the weekend nights.

Best wishes -

 

[bicker]

You can bet that "regular" does NOT mean standard view at BWV. There is never any multiple-day breakage in the standard view rooms, because they're such a good points-value. Those are ROH rooms, so generally are preferred view.