2019 Proposed DVC Annual Dues Increase Impact on DVC Rental Pricing

As a CPA I feel compelled to clarify some statements. Please do not take any offense as I'm not trying to be argumentative or point out mistakes. However, some people who read these boards could use information they've learned here and I want to ensure their making decisions on accurate info.

Agreed it's true that rental income must be reported whether a broker is used or not. However, Form 1099-MISC is the form a broker would send to an owner. The owner reports the rental income and expenses on Schedule E

This is incorrect. Dues are a required expense for the owner and therefore fully deductible from rental income.

Correct about the interest, not the rest. Contracts have an expiration date, and therefore the owner's right to use diminishes each year. This is similar to depreciation and can most certainly be used to offset rental income.

Disclaimer: This is a very general overview of some topics pertaining to rental income and should not be construed as tax advice. I would highly recommend that any owner who rents and isn't very familiar with tax laws seek help specific to their situation from a licensed tax professional. Preferably one with experience with timeshare rentals.

Thank you, Scott. I AM NOT a tax person. I do have an accountant, and I presume they will do all of these things right, but I AM trying to understand as much as possible, myself.

Something kind of unrelated: I would like to put my DVC contracts into a Family Trust (Probably), but I have NO idea how a Family Trust works, or what you need to do to transfer it to the Family Trust, and HOW will it affect resale, someday? If anyone knows anything about this, please comment.
 
You're welcome, and I'm sure you're accountant will handle your situation properly. As far as the trust goes, an attorney can definitely give you better answers but I will attempt based on my knowledge. Trusts are set up to make things easier for your heirs down the road as probate will be avoided and assets will be protected. An attorney would be required to set it up for you. As far as affecting resale, it can vary widely depending on how your trust is set up with the primary differences being revocable and irrevocable. Again, if this is something you are considering I would definitely contact a family law attorney.
 
You're welcome, and I'm sure you're accountant will handle your situation properly. As far as the trust goes, an attorney can definitely give you better answers but I will attempt based on my knowledge. Trusts are set up to make things easier for your heirs down the road as probate will be avoided and assets will be protected. An attorney would be required to set it up for you. As far as affecting resale, it can vary widely depending on how your trust is set up with the primary differences being revocable and irrevocable. Again, if this is something you are considering I would definitely contact a family law attorney.
Thank you. I will.
 
Apologies if the incorrect Forum.

I read a few days ago that the 'proposed' 2019 annual maintenance dues are going to be huge .... at least for our three home resorts (AKL 10%; BWV 9.5%; SSR 9.5%), blamed in a large part from what I read on the new collective bargain agreements.

For those who are long time DVC owners (we just purchases AKL and BWV this year.....SSR a couple of years ago), I'm curious if prior year's substantive annual dues increases were followed a short time later by a general increase in the rental costs of DVC units, either by third party rental organizations or direct.

Or, is the DVC rental cost market dependent on some other factor?

Thanks!

Instead of just pointing to the collective bargaining agreement, let's also consider the cost of security and recent weather-related issues (i.e. insurance costs).
Until we address the increased violence in our nation, security costs will continue to rise.

This has nothing to do with unions.
 


Instead of just pointing to the collective bargaining agreement, let's also consider the cost of security and recent weather-related issues (i.e. insurance costs).
Until we address the increased violence in our nation, security costs will continue to rise.

This has nothing to do with unions.
I disagree.

The bulk of the increase is housekeeping costs, not security cost increases (that's a separate line item). This has everything to do with wage increases and only plays a small part in the security theater of entering every villa daily to take a look around and remove trash. Did you even look at the breakdown of where the MFs go?

At VGF (for example): Security decreases to $0.0456 per point (was $0.0613 in 2018), insurance goes to $.0943 (was $0.0895 in 2018, a 5.3631% increase) and housekeeping rises to $1.4269 (it was $1.2007 in 2018, an 18.839% increase).

Numbers don't lie. It's the cost of housekeeping that is driving the increase in the dues.
 
With the increase in housekeeping is there a chance that they will make up the room every day again
 
With the increase in housekeeping is there a chance that they will make up the room every day again
No. We're just paying them more to do daily room checks and to wake us up at 8:00 AM on checkout day.
 


With the increase in housekeeping is there a chance that they will make up the room every day again
The point of the pay increase was to create some parity with an economically defined fair living wage.

Disney is gradually increasing the lowest CMs wages to what they should be getting paid for the work they currently do.

We will see zero change in service.
 
I fixed that for you.
No need to fix it for me. I can speak for myself, thank you.

I have no problem paying a living wage to the housekeeping staff. I was responding to the PP who thought that the increase in housekeeping costs should somehow translate to an increase in housekeeping services. It won't. We will still get the same daily intrusion to remove trash under guise that this somehow increases security for all of us. And they will still rouse us out of bed at 8:00 AM on our final day in order to begin the changeover.
 
Okay. Regarding the pay increase for the workers . Call me an insensitive, uncaring, capitalist Pig. It won't matter because I'm not going to debate things. I don't plan to answer this topic again. And the moderators might well remove this post. If so. That is fine with me. I don't want to violate their rules.

But I just wanted to put the idea out there that I thought people got paid what they were worth. It's nice to care about people but when you pay people more than they're worth what you're actually doing is giving them charity. How do you define what people are worth? That is difficult. People as people are worth a lot. People as workers are something else. Generally workers get paid what it costs to replace them. This cost to replace them includes whatever factors it requires to get a person to do the same job. That could include training, certification, experience, relocation, collective bargaining agreements, bonuses for specific hours, for danger, or physical or mental effort. It could include many things. But when you say give people a 'living wage' I just want to make it clear that what you are saying is give people charity, if it is more than they are worth for the job that they do. If it is such a poor, undesirable job and wage, then they are always welcome, in this country, to go get a job somewhere else that might be more suited to their own personal requirements.

Okay, I'm done, and I'm sure some people will say that I have no right to say this because I just don't understand or care, but again, before you accuse me of something that is not true, you should be aware that I literally work for free, as a voluntary thing, for people many times a month. And I literally give away thousands of dollars a week on a regular basis to other people, especially people who dont have money, and especially people who don't even know I'm doing it, with no expectation of payment or reimbursement coming back to me, for what I gave them. So, I do not think I am insensitive.

Oh, and I run a business with 45 employees, and I pay my employees anywhere from about 160% of minimum wage on the lower end up to over $100,000 for the 20% on the high end.
 
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Okay. Regarding the pay increase for the workers . Call me an insensitive, uncaring, capitalist Pig. It won't matter because I'm not going to debate things. I don't plan to answer this topic again. And the moderators might well remove this post. If so. That is fine with me. I don't want to violate their rules.

But I just wanted to put the idea out there that I thought people got paid what they were worth. It's nice to care about people but when you pay people more than they're worth what you're actually doing is giving them charity. How do you define what people are worth? That is difficult. People as people are worth a lot. People as workers are something else. Generally workers get paid what it costs to replace them. This cost to replace them includes whatever factors it requires to get a person to do the same job. That could include training, certification, experience, relocation, collective bargaining agreements, bonuses for specific hours, for danger, or physical or mental effort. It could include many things. But when you say give people a 'living wage' I just want to make it clear that what you are saying is give people charity, if it is more than they are worth for the job that they do. If it is such a poor, undesirable job and wage, then they are always welcome, in this country, to go get a job somewhere else that might be more suited to their own personal requirements.

Okay, I'm done, and I'm sure some people will say that I have no right to say this because I just don't understand or care, but again, before you accuse me of something that is not true, you should be aware that I literally work for free, as a voluntary thing, for people many times a month. And I literally give away thousands of dollars a week on a regular basis to other people, especially people who dont have money, and especially people who don't even know I'm doing it, with no expectation of payment or reimbursement coming back to me, for what I gave them. So, I do not think I am insensitive.

Here's the thing though. Who ISN'T worth being able to meet very basic minimum living costs? Because if inflation and cost of living have deemed the previous wage insufficient, then stating that increasing their wage is paying them MORE than they are worth is implying they are NOT worth being able to pay basic cost of living.

You can volunteer and donate all you want, and that's a good thing...but it doesn't mean your perspective on this is correct.
 
Here's the thing though. Who ISN'T worth being able to meet very basic minimum living costs? Because if inflation and cost of living have deemed the previous wage insufficient, then stating that increasing their wage is paying them MORE than they are worth is implying they are NOT worth being able to pay basic cost of living.

You can volunteer and donate all you want, and that's a good thing...but it doesn't mean your perspective on this is correct.
People are people. And they are wonderful. People are the most Importent thing. However, they may have a two income household, or other needs, and benefits. So a “living wage” is different for different people. I’m not saying they aren’t WORTH it as people. Just that in the labor force, things are measured differently.

That being said, I also AM NOT saying they shouldn’t get their pay raise. In my previous post, I said that one of the legitimate factors in establishing wages is Collective Bargaining. Through their collective bargaining, they were able to wield enough clout to get the higher wages, in return for giving up tips. Good for them. They did it right. BUT, they have made their choice. I know everyone is not like me, but I HAVE NEVER failed to pay a tip to a housekeeping person, or a server. Usually quite in excess of the standard amount. I am known as a very good tipper. I have taken dozens of trips where I stayed a week or so, and tipped the housekeeping staff $200 or more for the week. That is, until my last trip to Polynesian, a month and a half ago. I did not leave a housekeeping tip for any day. And I told the people traveling with us, staying in the other room, that they did not need to, either, since tips are no longer part of the wages. It felt weird, but it was the choice that the housekeepers made. And, I am NOT going to pay them double, through increased dues and tips, too. I will give my tips to all the other people who serve, but who don’t have a union mandated change from tips to wages.
 
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You will not be able to pay the dues until after the board approves the budgets for the DVC properties on December 13th.
 
Thanks figured it was after board date
You can go into your membership website, and go to the dashboard page, then go to the tabs that talk about dues. You can set up monthly dues to be deducted straight from your bank account. That way you don't need to pay them all at once. If you set up monthly dues in this way, you are considered to be fully paid up for dues at all times. You never need to worry about wanting to make a reservation and not having your dues paid.
 
You can go into your membership website, and go to the dashboard page, then go to the tabs that talk about dues. You can set up monthly dues to be deducted straight from your bank account. That way you don't need to pay them all at once. If you set up monthly dues in this way, you are considered to be fully paid up for dues at all times. You never need to worry about wanting to make a reservation and not having your dues paid.

Yeah more I have the Disney gift cards and want to be done so I can throw them out - I consolidated but can never be to careful
 
Yeah more I have the Disney gift cards and want to be done so I can throw them out - I consolidated but can never be to careful
You can actually pre-pay your dues. If you don’t want to keep the cards laying around, just go to:

Dashboard>Dues>Pay my dues>Pay by contract

You have multiple memberships, so you’ll need to actively need to select how much to pay towards each one, but for everyone else who has one membership, you can add the gift cards to any contract and when the account comes due, it’ll draw that credit down until all dues for that membership are paid.

I’ve had a credit that should cover most of my 2019 dues sitting on my account for the better part of the last 9 months.

Money doesn’t grow sitting on a gift card, but linked to your membership, you don’t lose it either.
 

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