Why do you Rent?

[Callalily6]

So, I gotta ask - if you paid over $80 per point for DVC, why rent at $12 per point or less? Is there something there Im not aware of?

I thought that happens when people forget to bank their points. Is there any other reason why one would do this?

 

[castleri]

I have rented points to pay for a cruise, and expenses related to going to Disneyland for the 50th birthday celebration. I have also rented to help pay maintenance fees on years when we could not use all the points. I don't know why other people rent but those are some of my reasons. I would prefer to use all my points myself but the ability to rent them has helped pay for other trips to other places than WDW.

 

[Chuck S]

$80 is the initial buy in, not a yearly fee. For instance, I purchased at $51.50 in 1992, giving me roughly 49 yeears to use my points...so, $51.50 divided by 49 = $1.05 per year. Now add current dues (estimate 4.25) for a total of $5.30. Renting at $12 for 300 points would gain me an annual profit of at least $2000. That is why some people rent. Personally, I usually bank a few points every year, and when I have extra built up, I invite friends/family for free...I don't rent out points. But some people bought a lot of points for the sole purpose of renting.

Others, as the previous poster indicated, rent to be able to pay cash for other locations or cruises.

 

[mj2vacation]

I assume that the income from renting is taxable.

Does that make it worthwhile to rent at anything under $12?

 

[Frankiesmom]

I don't believe it's income-you have already paid out for those points? Can someone explain this to me..

 

[Chuck S]

Why wouldn't it be taxable income? If you rent your house, it is income, you already paid for that.

 

[I'mNoPrince]

As many don't but I do think if you are making money off it ( Being paid any fee ) you are suppose to claim it.

E-bay is the same but most people don't there either.

 

[Parkhopper13]

$80 is the initial buy in, not a yearly fee. For instance, I purchased at $51.50 in 1992, giving me roughly 49 yeears to use my points...so, $51.50 divided by 49 = $1.05 per year. Now add current dues (estimate 4.25) for a total of $5.30. Renting at $12 for 300 points would gain me an annual profit of at least $2000. That is why some people rent. Personally, I usually bank a few points every year, and when I have extra built up, I invite friends/family for free...I don't rent out points. But some people bought a lot of points for the sole purpose of renting.

Others, as the previous poster indicated, rent to be able to pay cash for other locations or cruises.

I agree 100%, this is exactly why you can rent and potentially "turn a profit". This is why the problem with commercial renters as well. There is value owning DVC and many commercial renters try to exploit it. I usually bank my points as well, but occasionally I will rent to offset maint. costs. I love DVC and would usually just assume bring friends and family when I have extra points.

 

[blizzard]

I've only rented a couple of times. In my case it was temporary financial restraint. Not enough to consider selling our contract, but enough that a Disney Vacation would be best postponed for a year or so.

Renting gives you the option of having someone else pay your yearly maintenance fees plus a little extra, and also be able to save the money you would have spent on travel, food, and extras.

I have not considered selling my contract (and in fact would like to add on sometime in the future). Renting is a great option when you can't really afford to take the big vacation that year.

 

[disney gadabout]

We purchased many points in 1997. Since that time our vacation habits have changed. We still enjoy a 5 day trip once a year, but also like to travel to Europe every other year and our National Parks every other year. So we began renting excess points. Since this has become our pattern, we have sold one contract. The one remaining contract will still give us excess points about every other year but I'd rather rent than sell the contract since I think once we retire, I'll be again, needing all my points.