How should DVC Members rent out their points: Privately or broker-assisted?

[DVC Mike]

Here is an evaluation of whether DVC members should rent out their points on their own or via a broker-assisted approach.

The article was authored by the owner of a DVC point broker company, yet is surprisingly balanced and fair. What do you think of the article?

Renting DVC: Private vs Broker Assisted

 

[LuvtheGoof]

Good article. Thanks for posting. Even though we wouldn't normally rent our points - we love to use them - it's good to know what to expect just in case that situation does arise. We would only go through a broker if we did have to rent them out.

 

[EOD K9]

Good article. I've rented my points a few times to only people on here. They are well established members who have become repeat customers. I'd like to think each party would call it a positive experience. However, others' experience may vary.

 

[lostpro9het]

I'd like to think each party would call it a positive experience.

Positive and educational!

 

[DVC Mike]

I'd just like to warn people to be very careful when renting points from a stranger. Less than a month ago, two people were trying to rent points using MouseOwners and they got scammed.

The sad thing is, if you get scammed on MouseOwners, they don't let you post about it.

If you are considering renting points from a stranger, please be sure and read:

DVC Point Rentals Explained.

 

[Adriene KEATING]

This is my first post so I'm not sure if there is a better place to write this. I have read so many helpful posts on this site and wanted to say thank you to everyone!!

We just returned from disney, (easter break) it was our first time renting dvc points. I was pretty clueless about the whole process when I started but did a ton of research before I booked. Everything went really well and I would do it again. We had such a good time, I started researching buying into dvc when we got home. I can totally see how it was well worth it for people who bought early but everytime I crunch the currant resale prices it is cheaper for me to rent points. Am I missing something? Thanks!!

 

[xdan0920]

Good article. I've rented my points a few times to only people on here. They are well established members who have become repeat customers. I'd like to think each party would call it a positive experience. However, others' experience may vary.

I rented to @George and @sshindel once...

They stole the TV, the microwave and all the cutlery. They refused to use the bathrooms, citing religious beliefs, and ruined much carpet. They soaked the comforter in the bathtub then stuffed it in the freezer. They even left the door open with the AC on!!!! Don't even get me started on how they treated the quiet pool....

When confronted about their behavior they told me I better not narc on them, or else.

 

[sshindel]

I rented to @George and @sshindel once...

They stole the TV, the microwave and all the cutlery. They refused to use the bathrooms, citing religious beliefs, and ruined much carpet. They soaked the comforter in the bathtub then stuffed it in the freezer. They even left the door open with the AC on!!!! Don't even get me started on how they treated the quiet pool....

When confronted about their behavior they told me I better not narc on them, or else.

Wrong!

We didn't steal the microwave. It broke whilst we were microwaving a bunch of silverware we stole from Trails End. It caught on fire, so we threw it into Bay Lake.

And of course we soaked the comforter. How else were we going to soak up all of the chemicals we used to make our meth. A cheap hotel comforter acts like a sudafed sponge, then when frozen it removes the smell, at least until it thaws, and by that time we were way gone.

 

[LuvtheGoof]

This is my first post so I'm not sure if there is a better place to write this. I have read so many helpful posts on this site and wanted to say thank you to everyone!!

We just returned from disney, (easter break) it was our first time renting dvc points. I was pretty clueless about the whole process when I started but did a ton of research before I booked. Everything went really well and I would do it again. We had such a good time, I started researching buying into dvc when we got home. I can totally see how it was well worth it for people who bought early but everytime I crunch the currant resale prices it is cheaper for me to rent points. Am I missing something? Thanks!!

That reasoning only works in the short term. Yes, you might think that renting points will be cheaper, but that is only true right now. What about 20 years from now? We own at SSR, so our dues cost us $5.44 per point, and we have long passed the breakeven point on our initial purchase. So renting is anywhere from $10-15 per point. We could make money by renting out our points every year, but of course, we always use them.

With DVC you have to look at the long term monetary benefits - not the short term costs. Once you have saved enough in resort costs compared to your initial investment (about 5-6 trips if buying resale), then all you are paying is dues, and the savings just go up from there. Historically, the resort costs for rooms has gone up more than our dues, and I see no reason for that to slow down. In addition, people keep talking about a 30% discount, but who knows how long that might last? And they are only good for certain dates, so may not even fit with your travel schedule.

Our last DVC stay was for 8 days in a 1bdr at VGF. To pay cash for the room would have been over $7,000 without the extra taxes and such. Using our points, and calculating the $5.44 per point for us, it cost us just over $2,000 in dues cost to stay there. A savings of over $5,000 just on the resort. Much more than ANY discount that Disney is going to release. Oh, and if you found a good rate of $12 per point to rent, it would have cost you over $4,500 to rent the points. More than double my cost.

I am the first to admit that DVC is NOT for everyone. It works for us, and many others, but it has to fit your travel style.

 

[Adriene KEATING]

That reasoning only works in the short term. Yes, you might think that renting points will be cheaper, but that is only true right now. What about 20 years from now? We own at SSR, so our dues cost us $5.44 per point, and we have long passed the breakeven point on our initial purchase. So renting is anywhere from $10-15 per point. We could make money by renting out our points every year, but of course, we always use them.

With DVC you have to look at the long term monetary benefits - not the short term costs. Once you have saved enough in resort costs compared to your initial investment (about 5-6 trips if buying resale), then all you are paying is dues, and the savings just go up from there. Historically, the resort costs for rooms has gone up more than our dues, and I see no reason for that to slow down. In addition, people keep talking about a 30% discount, but who knows how long that might last? And they are only good for certain dates, so may not even fit with your travel schedule.

Our last DVC stay was for 8 days in a 1bdr at VGF. To pay cash for the room would have been over $7,000 without the extra taxes and such. Using our points, and calculating the $5.44 per point for us, it cost us just over $2,000 in dues cost to stay there. A savings of over $5,000 just on the resort. Much more than ANY discount that Disney is going to release. Oh, and if you found a good rate of $12 per point to rent, it would have cost you over $4,500 to rent the points. More than double my cost.

I am the first to admit that DVC is NOT for everyone. It works for us, and many others, but it has to fit your travel style.

Thanks for taking the time to share your thoughts. You are right, when crunching the numbers I was looking at the next few years not 20 years down the road. I added the cost of a resale contract plus annual dues, divided that number by the amount of points in that contract and each point would cost around $22 per point.

On this recent trip for the first time ever, we went without kids and we had such a blast. Our kids are older, 1 is out of collage and 1 is a junior in high school. Once my daughter is in collage we would be able to travel any time of year we want, even low (cheap) season.

We have always stayed at moderate or lower end deluxe hotels when we have visited over the years. The example you gave about saving $5,000 just does add up for me because I just wouldn't pay $7,000 for a week at a disney hotel. If I wouldn't pay it then I can't pretend I would be saving it. I see your point though!! Thanks again for your perspective, I have a lot to think about.

 

[LuvtheGoof]

Thanks for taking the time to share your thoughts. You are right, when crunching the numbers I was looking at the next few years not 20 years down the road. I added the cost of a resale contract plus annual dues, divided that number by the amount of points in that contract and each point would cost around $22 per point.

On this recent trip for the first time ever, we went without kids and we had such a blast. Our kids are older, 1 is out of collage and 1 is a junior in high school. Once my daughter is in collage we would be able to travel any time of year we want, even low (cheap) season.

We have always stayed at moderate or lower end deluxe hotels when we have visited over the years. The example you gave about saving $5,000 just does add up for me because I just wouldn't pay $7,000 for a week at a disney hotel. If I wouldn't pay it then I can't pretend I would be saving it. I see your point though!! Thanks again for your perspective, I have a lot to think about.

That is a popular math mistake. You need to look at the overall picture to get a better idea. Add in the buy in cost to the dues cost for the life of the contract, and the total number of points you will receive over the life of the contract and then you can better determine a cost per point. Ours is about $6 for the 360 points we currently own. YMMV depending on the resort.