Why do Owners rent points?

[DJNOWICK]

Hi,

I'm a long-time DIS member (although mainly a lurker!) but very new to the DVC world. We are thinking about renting points to celebrate my mom's 60th birthday later this year. My questions are:

1) what's the benefits of renting points to an *owner*? I have a friend who is a DVC owner - he has never rented his points before...I'm going to ask him if he is interested in renting to me, but I'm not sure why he'd want to/need to rent his points.

2) In your experience, are DIS people likely to rent to someone who has never rented before and who - like me - isn't well-known here? If I'm perceived as an inherent "risk" how do I address that? Post more? Other ways?

I know these may seem silly questions - I'm a pretty experienced Disney planner but DVC is very new to me.

Thanks! Jackie

 

[shantay1008]

Hi, Jackie,
I rented out some points this year because I knew we wouldn't be using them, and we used the cash for other things. Someday, I'd like to be in a position to just give points away to friends and family if we're not going to use them, but we're not quite there yet.

I read one post where the DVC member had purchased a ton of points so that when he retires he can stay at WDW every year for, like, a month. But in the meantime, he rents out some of the points because he doesn't use nearly that many now.

Good luck!
Shannon

 

[bicker]

Because Royal Caribbean doesn't take DVC points for payment.

 

[Caskbill]

There are a number of reasons why members may rent point, such as the following:

1. As Shannon said, a member may purchase more point than they can use right now (looking ahead to retirement), and rent the excess points.

2. A member may want to do something different and can actually come out ahead by renting points than using the points directly for a non-DVC vacation. The Disney Cruise Line is an example of this. Many have found that instead of using points directly for the cruise, that if they rent out that equivalent number of points they can receive enough cash to actually pay for the cruise directly, and still have money left over.

3. A member may be past their banking deadlines and won't be able to use the points by the end of their use year, so they try to rent them out. For example a member may have 300 points, makes a 150 point reservation, and banks the remaining 150 points. Later they have to cancel the reservation for some reason. If they're currently in the 7th-9th month of their use year (6-months left), they're in the 50% banking window. Since they already have 50% banked, they can't bank the 150 returned points. So they will try to rent them.

3A. Or, instead of cancelling the reservation above, the member may try to rent the reservation itself.

4. A member may need cash for some other expenses during a particular year, and sees that renting points in lieu of taking a Disney vacation that year is a way to generate cash.

5. A member may be renting points to 'pay' their maintenance fees. They may only need 150 points a year for themselves, but purchase 300 points, use half themselves and rent the other half. Maintenance fees on 300 points might be $1250/year, but they might rent half their points for $1500. (Note, this often ties in with #1 above)

6. A member may not be able to vacation as often as necessary to use up sufficient points. For example, they may not go on vacation this year, so they bank their points. Next year they still can't go. Since they can't bank 'banked' points again, they need to use those points, or lose them. So they may rent them out.

7. A 'member' may not use the points themselves at all, but has created a 'commercial enterprese' of renting points. In these instances you will often see glossy ads on E-Bay and so on.

There are probably other examples, but most will probably fall within one of the above, with some minor variations here or there.

 

[wordzylady]

We had to rent some points last year that had to go into the holding tank because we had to cancel a vacation at the last minute due to a family emegency and would not be able to use them by the end of our use year. It worked out very well for us.

 

[DJNOWICK]

Thank you so much for the information!

Well, I talked to my friend Bryon and they are banking all of their points for a cruise next year...so I guess I am possiby in the market for points on the DIS. Guess I should go visit the rent/trade board and start investigating!

Jackie

 

[bridgemanva]

Caskbill pretty much covered all the reasons I can think of --we're #2 -- we rented out points to pay for the Disney Panama Canal Repo cruise last year and now anticipating Disney's Meditereanean Cruises next summer we'll be doing the same. When I priced the cruise cash vs. Points valued at $10pp there was over a $2000 difference seemed like a no brainer.

As for your other question:

"2) In your experience, are DIS people likely to rent to someone who has never rented before and who - like me - isn't well-known here? If I'm perceived as an inherent "risk" how do I address that? Post more? Other ways?"

Renting requires trust on both sides--check their posts-- I usually give and get a bit of background info -- use a contract-- and make it so when I rent the points aren't going to expire close to the reservation date so there's less chance of myself or the renter getting jammed up. Although I've never had it happen if the renter doesn't complete the contract with final payment I can cancel and re rent or bank; I have had someone need to reschedule which is allowed for within the contract until the points expire which is usually about six months from their original reservation and based on availability at DVC.

As described people rent for different reasons-- some folks approach it as pure business or as a favor I kind of like to think of it like a mutually benficial arrangement someone gets a WDW trip at a reasonable cost and I get to pay a reasonable cost for a DCL cruise.

 

[mickeyman]

i am also renting mine because royal caribbean does not accept DVC points for payment.

 

[crisi]

There are a number of reasons why members may rent point, such as the following:

4. A member may need cash for some other expenses during a particular year, and sees that renting points in lieu of taking a Disney vacation that year is a way to generate cash.

This falls here, but is worth mentioning. A lot of DVC owners will fall on temporary hard times - get laid off from work, medical issues, college tuition. They don't expect the problem to last forever and want to go back to their DVC vacations when it ends, but paying dues - much less the tickets/food/transportation involved in a Disney vacation - are expenses that they don't need in the budget at the moment. Renting points can be a short term solution - it can cover dues AND bring in some needed extra income in a tough year - a lot of us bought knowing that this was a possibility if we did have a year of budget stretching.

 

[goofyforlife]

we rented some points because on our last trip in Dec, our 2bd wasn't available for points for our last night. It was available for cash though.

I rented out a very close amt of points we would have used for that night and it more than paid for what we had to spend on that cash night. (We didn't want to have to move on last night.)

 

[jpolak]

When we signed up in Oct. Disney gave us all of our 2005 pts. Since we had just come home we knew we would not be going back real soon, so we rented all of those pts. After booking our trip for August and figuring out when our next possible trip would be, we determined that our pts. would expire(even with banking them). So instead of losing them we rented them. The way I see it is my intial cost of DVC has just been reduced. I have rented to three people. One I work with and two who I "met" on these boards. As the renter you really have no risk. I control the reservation and can cancel it if need be. Say if the rentee fails to make payment or if their check bounces. The rentee bears all of the risk. We rented before we bought and I was sick to my stomach until I checked in and my reservation was really there.

 

[goofyforlife]

As the renter you really have no risk.

Actually, there are other risks..... Search for the thread where someone's points were frozen because the room still had charges left on it due to a CC glitch....

And if the non-member would damage the room...Those charges would fall on the member who rented the room.

 

[bicker]

Big risks... and just about worth never risking renting points again.

 

[rinkwide]

Statistically speaking, you are more likely to be seriously injured or killed by using your own bathroom than you are by renting points.

 

[greenban]

Statistically speaking, you are more likely to be seriously injured or killed by using your own bathroom than you are by renting points.

Gotta have more Cowbell!

-Tony

 

[DBBN]

For us - look to Caskbill's reason #1. We're planning for retirement. We have more points that we can currently use and for the last few years we've chosen rent the excess. I couldn't be happier with the results.

As for "...are DIS people likely to rent to someone who has never rented before and who - like me - isn't well-known here? If I'm perceived as an inherent "risk" how do I address that? Post more? Other ways?"

I have no issues with renting to DISers who have posted only once. I get to meet the NEW renters I work with and get comfortable with them by noting their style and demeanor as they interact with me while we discuss the terms of the rental. For new renters I would guess we'll chat, almost always via email but sometimes by phone, 6 or 8 times before the confirmation and Rental Agreement are sent out. This interaction is enough to make me comfortable allowing me to proceed with the rental. I haven't yet had to refuse a potential renter a rental for any reason other than already having rented out all of our points for the year.

Good luck with your rental.

 

[Laurabearz]

We have rented points to friends for magical gatherings, but soon I will be renting most of our 1000 2007 points to pay for our Disney cruise in Oct 2007.

I have also rented points when we fell short (booking the above magical gathering) It went really well.

 

[tinkerbelle77]

Thank you all for your replies...I am a new DVC member Jan 06 and I have used all my points from 2005, but may possibly have some 2006 points left. I had no idea how to rent them, but I kind of have a feel for it now. Thanks again!

 

[ericamanda01]

We are also new members and had the 05 points but didn't need them. I was a little uneasy renting them out because I have only been the rentee. I only felt comfortable renting them out to someone I really trusted. That way if I made a mistake it wouldn't be such a problem. My friend was asking me alot about the process of joining DVC, so I rented out my points to her so that she and her family could stay at one of the resorts. and get an idea if it was for her.

 

[RealMickey]

DVC Members reasons for renting is varied. We, like many on these boards, are renting points this year to pay for a DCL cruise. The number of points we needed to rent to cover the cost of the cruise ended up being a little more than half as many as it would take to book the cruise on points. It is working out great for us.

We bank points every year and generally vacation on our banked points. So this year we took a short trip early in the year, rented points for a cruise late in the year, and will probably bank the remainder. (We may even take another short trip later in the year).

We have not rented before, and may or may not rent again, but I really like the idea of being able to rent points if the budget gets tight, or if we want to vary our vacation options.