Why Do Points Rent So Cheap??

[stanmills34]

Why do points only rent less than half disney's rack rate..

 

[CarolA]

Disney provided Daily cleaning at rack rate?

Most folks don't pay rack rate?

There is a risk in renting. Part of the risk acceptance is the deal the renter is getting... if it gets close to the rate Disney is charging then most folks probably don't want to risk it!

Supply and demand..

The real truth is that there are enough folks renting points that if you want $20 a point I can go find someone else at $10.

 

[DVC Grandpa]

With the new banking deadline you have four month after the deadline in which you have to use them or loose them. Under the old deadline you could bank 25% of your points at the 10th month. Lot of things can happen in those last four months which could cause the sale of unbanked points at a lower price. I would rather get something rather than letting them expire.

 

[CarolMN]

What is your definition of cheap? If you are thinking $11 or less, I submit you may have bad info, especially if you are using the Rent/Trade Forum as a basis for your premise.

It's very hard to say how many successful rentals there are just from what is posted on the Rent/Trade Forum. There is no requirement for anyone to report back on what was rented or for what price. It's just my opinion, but I don't think all that many people are successful at renting for less than $12 per point. Those that are successful are most likely to be going at odd times or have a personal relationship with the owner.

Keep in mind that the DIS is not the only place to rent points. I think most owners who rent for $14 per point and up do not use the DIS to find their customers. Again, JMHO. YMMV.

P.S. Availability can be a big problem when you get within 2 or 3 months of arrival. Many of those "cheap" points are expiring soon - it's unlikely that anyone who wants to rent before the end of 2008 will have much success (unless an owner is renting an already secured reservation.

 

[Dean]

There are many factors. I don't think housekeeping really has much effect but the risk and lack of comfort in the process does for many people. There is some risk for a rentee. IMO, DIS has done as much or more than anything else to hold down the rental prices for a number of reasons, some intentional and some not.

 

[Laneychris]

Maybe I misread, but many of those people renting points can't really rent them out? That seem odd to me.

 

[crisi]

There are two sides of the equation - what people are willing to pay - which isn't close to rack rate due to lack of housekeeping, more restrictive cancellation, more planning required, working with a private individual, etc.

The other is what people are willing to rent points for. If you purchased for $60 a point 10 years ago, have had lovely vacations since then, and pay less than $5 a point in dues, $10 a point is still a tidy profit. If you need to rent out points that are distressed, need to be rented in a short timeframe, $10 a point looks good. If you need to rent points quickly, with a minimum of hassle, to the first person that answers your add with less risk of having the person back out pre-deposit, $10 a point doesn't look bad. If an extra $100 on your rental is not a big deal to your budget, $10 a point isn't bad. If you want to rent points to cover a cruise, $10 a point doesn't look bad. If you purchased at $90 a point, you are competing with people for whom $10 a point represents significant profit margin, $10 a point is better than points going to waste, $10 a point will cover their cruise better than using their points to cruise, and who may not care about much more than "covering dues this year."

 

[DVCERSINCEDAY1]

My feeling is that rental prices are oftentimes low, even for very desirable points, simply becaue the owner won't ask for more.

Desirable points are those available at the most popular resorts beyond the seven-month window. Within seven months, all points are worth exactly the same, regardless of home resorts. Then it becomes a price issue

When I finid I need to rent points (I am always thinking ahead here), I work only with people wanting reservations in the seven to eleven month window...the farther out the better.. I have just gotten $13/point for VWL for a 2009 reservation. I am also in thevery last stages of booking a large-point 2009 reservation at BCV for $15/point. If this deal falls through, I will continue searching for a renter that recognizes the value of these points and is willing pay a modest premium for BCV or VWL rather than OKW or SSR, albeit both are wonderful, they are the largest resorts and where there is likely to be availability within seven-month window.

 

[marynvince]

and the rental process. Supply is what it is , relatively fixed although I suspect it would increase if price per point for rentals increased. Most Disney visitors that are planning their first "big" visit to Disney, going to stay on property and get the full experience, Don't know about DVC and don't know about the availability of renting DVC. I would say even returning visitors don't have awareness of DVC/Renting points, although to a lesser degree. If the word was out, many more people would rent points to save off of Dsiney rates, whatever the real rate is. The rental cost from DVC owners and from Disney should be alot closer then it is. If we want the cost per point to go up, we need to increase the awareness of our product, driving up demand and rental prices.

 

[DVCERSINCEDAY1]

I believe that the reason some points on the market remain unrented has more to do with lack of availability within seven months tjhan with a lack of willing buyers. It becomes more and more difficult to find consectutive nights at any resort awhen trying to book just a short period out. Availability will be sparse and spotty. Thus, one has difficulty renting at any price.

Offering points for rent at one's home resort beyond the seven-month window offers the most potential for successful renting. This advanced planning may be difficult for some owners. But, at seven months out, a point is a point is a point, and there is limited availability.

For resesrvations near the 11-month window, current market demand appears to support a minimum of:

$12/point - SSR
$12-13/point - OKW
$13-14/point - VWL, AKV
$14/point - BWV
$15/point - BCV

I really believe, based on my own recent experience, that if you ask for this and simply wait a bit (not a long time either!), you will get a renter at these prices. Regardless of what one paid for the contract, "giving away" desirable points is not necessary or in our best interests.

 

[Dean]

My feeling is that rental prices are oftentimes low, even for very desirable points, simply becaue the owner won't ask for more.

And this is PART of the reason why I feel DIS is a contributing factor.

 

[WaltEeyoreWorld]

Although rental rates have not really changed in time, which would go against this argument, I feel a big reason rental rates can be found in the really low $8 / point range is because of the influx of developer points. We bought a contract this year and had 300 developer points that we did not have a use for and rented them out. I think many probably do this.

 

[BCM49ER]

Keep in mind that the DIS is not the only place to rent points. I think most owners who rent for $14 per point and up do not use the DIS to find their customers.

What are the other sites you mention?

Also, responding to the original post, one thing I noticed when I rented some points before we became owners was that a lot of the posts that are at lower prices never seemed to come through with an actual rental. It seemed like they had so many requests, they could never get back to you. I think most people would be willing to pay an additional $1-$3 per point to actually get a response and have the transaction go through quickly.

 

[CarolMN]

What are the other sites you mention?

I am not recommending other sites, LOL. If you are looking for something online, try using one of the search engines such as Google or Yahoo, etc.

It is my belief that members often rent to friends, family, neighbors & coworkers. I have seen adds in local newspapers and even church bulletins. If you don't limit yourself to websites, there are many alternatives.

Also, responding to the original post, one thing I noticed when I rented some points before we became owners was that a lot of the posts that are at lower prices never seemed to come through with an actual rental. It seemed like they had so many requests, they could never get back to you. I think most people would be willing to pay an additional $1-$3 per point to actually get a response and have the transaction go through quickly.

Again, it's just my opinion, but I think the main problem is availability. I see many requests for reservations for resorts, dates and unit types that I know are sold out. Doesn't matter how cheap the points are if there aren't any rooms available. It wouldn't surprise me if some owners do not reply to renters when there isn't availability.

 

[Brian Noble]

The suggestion to avoid DIS, or large marketplaces like it, can work for a while, but is doomed to failure in the long run. In macroeconomic terms, larger marketplaces are more efficient----they provide for more competition for both demand and supply, and therefore provide the fairest price for the buyer (renter) and the seller (landlord). Going to the church bulletin, etc., to get a higher rental rate only works until the folks who read the church bulletin figure out how to comparison shop. And, "the Internets" make it pretty easy to comparison shop.

 

[CarolMN]

The suggestion to avoid DIS, or large marketplaces like it, can work for a while, but is doomed to failure in the long run. In macroeconomic terms, larger marketplaces are more efficient----they provide for more competition for both demand and supply, and therefore provide the fairest price for the buyer (renter) and the seller (landlord). Going to the church bulletin, etc., to get a higher rental rate only works until the folks who read the church bulletin figure out how to comparison shop. And, "the Internets" make it pretty easy to comparison shop.

I am not suggesting people avoid the DIS - I'm just saying that it is not the only place to find "customers". And I think it is only perception that points rent too cheaply.

Because the DIS is so large (and free to use), there is a lot of "noise" in the system - i.e., distressed points, inexperienced "landlords" and "tenants", unrealistic expectations, bargain hunters, etc. There is absolutely no way to know just from reading posts for a few days which transactions are successful and the price that was actually paid.

In many cases, I don't think renting points lends itself all that well to "comparison shopping". A successful rental is not a commodity, and so it's not just about price. Many people are willing to pay more to a person they know or someone with a local address and phone number, especially one they know is a bit of a "Disney" expert. Many will not easily or willingly trust a stranger. Almost all the posts here about renting issues stem from either a landlord or tenant who didn't know what they were doing or didn't do all of their homework.

New owners often find renting points isn't as easy as some here make it out to be - they have to "kiss a lot of frogs before they find their prince".

 

[VLee]

Prime times, limited type accomodations, such as standard studios, villas...do and should affect the price of rental points. The few times I have rented I try to provide excellent service to my guests... providing extra WDW tips and information to help them in planning their trip.

 

[DVCERSINCEDAY1]

I have just rented over 350 BCV points for summer 2009 AT $15/POINT plus Paypal fees, with all money paid up front and no refunds (I will work within point constraints should their plans change).

I have rented 134 VWL points for summer 2009 at $13/point plus Paypal fees, with all money paid up front and no refunds (I will work within point constraints should their plans change).

I was very conscientious with each renter, working with them to ensure they got what they wanted. How long did it take me to find these renters via this board and the other such board....LESS THAN ONE MONTH.

Regardless of (probably renter) naysayers, the market SHOPPING THE TWO "BIG" RENTALS BOARDS supports higher prices than many DVC members are getting for whatever reason. I, for one, am going to continue asking for a "premium" for my excess points rented at my home resorts (BCV, VWL, BWL) beyond the seven-month window. This is still a bargain, and I'll work only with who also see it this way.

 

[DisDaydreamer]

What are the other sites you mention?

Some people book highly desirable dates (at 11 months) and then package them as ready to go vacations to be sold/auctioned at much higher prices.