Rent out points or transfer to another member?

[Mollygirl21]

We have (banked from 2019 so no option to extend again). We would like to rent them out or transfer to another member and are wondering about the pros and cons of the two options.

It seems that transferring to another member would be preferable for both parties because it gives full control of the points to the receiving member and the original owner has nothing to do after the points transfer.

Am I missing something? Do people generally get more $pp by renting points or transferring them?

We are new to DVC this year and this is the first time we will be moving points around so I appreciate any help you can offer.

Thanks!

 

[Sandisw]

I removed details of points as that is too much information for a general thread and did not want to delete the entire post,

Banked points can not be transferred. Your only option would be to try and rent.

 

[Jack_Sparrow_NJ]

Renting the points is your only option since these were banked points. I recently faced the same issue. The decision you have to make now is do you want to rent them yourself or go through an agency. I chose the direct route and am very happy with the outcome. Do what makes you feel the most comfortable.

 

[Mollygirl21]

Banked points can not be transferred. Your only option would be to try and rent.

I knew there was something I was missing! If they weren't banked - anyone want to weigh in with the pros and cons of each method?

Renting the points is your only option since these were banked points. I recently faced the same issue. The decision you have to make now is do you want to rent them yourself or go through an agency. I chose the direct route and am very happy with the outcome. Do what makes you feel the most comfortable.

Thanks

Thanks for the info. Since it's a small number of points, and from what I read many brokers are saturated right now, I think I'll attempt to rent them on my own.

Thanks!

 

[UtahDon]

If not banked, generally transferring is easier for both parties. Also, as the one selling the points you get paid everything immediately at time of transfer. Since both people are DVC members there is less chance of confusion, and no chance of cancellation or other problems. Transfers are final.

If renting points (especially through an agency) you often don't get the full payment until check-in. You get part up front, and the rest sits in escrow to protect everyone on both sides. Expectations can be tough, especially if the person is used to cash pay with Disney, and is not a member. Cancellations can happen and if renting on your own you have to decide how to handle that. Overall renting is more complicated for sure. Renting through an agency means you pay fees, you could charge a buck or two a point less to transfer, and still make out ahead vs an agency.

Downside of transfer is that you can only transfer once per contract per year, so if you have 100 or so leftover points, or less, to get rid of transfer is almost always your best bet... however, If you have hundreds of points on one contract, you either need to find someone willing to take all the points transfer, or you will be left with some to rent out.

 

[Sandisw]

If not banked, generally transferring is easier for both parties. Also, as the one selling the points you get paid everything immediately at time of transfer. Since both people are DVC members there is less chance of confusion, and no chance of cancellation or other problems. Transfers are final.

If renting points (especially through an agency) you often don't get the full payment until check-in. You get part up front, and the rest sits in escrow to protect everyone on both sides. Expectations can be tough, especially if the person is used to cash pay with Disney, and is not a member. Cancellations can happen and if renting on your own you have to decide how to handle that. Overall renting is more complicated for sure. Renting through an agency means you pay fees, you could charge a buck or two a point less to transfer, and still make out ahead vs an agency.

Downside of transfer is that you can only transfer once per contract per year, so if you have 100 or so leftover points, or less, to get rid of transfer is almost always your best bet... however, If you have hundreds of points on one contract, you either need to find someone willing to take all the points transfer, or you will be left with some to rent out.

To clarify.. i believe it is not once per contract but once per UY. So, you have more than one contract, the transfer has to be done in the same transaction.

They won’t allow me to transfer some SSR points today and then call up in a few months to transfer BLT if they are the same UY.

 

[gisele2]

What is the "tradition" when transfering points? Do you ask for full payment upfront ? 50% upfront and the rest when the transfert is done ? Is there a contract for it ?

 

[Sandisw]

What is the "tradition" when transfering points? Do you ask for full payment upfront ? 50% upfront and the rest when the transfert is done ? Is there a contract for it ?

I always require payment in full before the transfer because once the points are gone, you can do nothing if you don’t get paid and DVC won’t get involved as transfers are not supposed to be for money.

I didn’t use a contract but relied on people from the boards trusting me to follow through. Someone did inquire once and wanted to do the 50/50 split and I declined.

But, others are comfortable with that model. No set way.

 

[gisele2]

I always require payment in full before the transfer because once the points are gone, you can do nothing if you don’t get paid and DVC won’t get involved as transfers are not supposed to be for money.

I didn’t use a contract but relied on people from the boards trusting me to follow through. Someone did inquire once and wanted to do the 50/50 split and I declined.

But, others are comfortable with that model. No set way.

Thanks, is there a way to know if someone did it in the past on this board?

 

[Sandisw]

Thanks, is there a way to know if someone did it in the past on this board?

Not that I am aware of as any deal that is made from the Rent and Trade board would be private between the owner who offered and the person who responded,

 

[robinb]

I always require payment in full before the transfer because once the points are gone, you can do nothing if you don’t get paid and DVC won’t get involved as transfers are not supposed to be for money.

I didn’t use a contract but relied on people from the boards trusting me to follow through. Someone did inquire once and wanted to do the 50/50 split and I declined.

But, others are comfortable with that model. No set way.

I have also require full payment for transfers. I find them much more nerve wracking because it's permanent. Once the points are transferred they are GONE and I have no way to encourage the buyer to pay for the other 50%.

I will sometimes ask for 100% and sometimes ask for 50% when I rent points. It depends on how long there is between when I do the rental and the dates of the stay. If it's longer than 6 months, I'll allow for payments to help people out. Full payment is due about 45-60 days in advance. If it's less than 4 months, I ask for full payment in advance. In between 4-6 months I make the decision based on my UY and banking deadlines.

But, as you say, everyone does things differently.

 

[Sandisw]

I have also require full payment for transfers. I find them much more nerve wracking because it's permanent. Once the points are transferred they are GONE and I have no way to encourage the buyer to pay for the other 50%.

I will sometimes ask for 100% and sometimes ask for 50% when I rent points. It depends on how long there is between when I do the rental and the dates of the stay. If it's longer than 6 months, I'll allow for payments to help people out. Full payment is due about 45-60 days in advance. If it's less than 4 months, I ask for full payment in advance. In between 4-6 months I make the decision based on my UY and banking deadlines.

But, as you say, everyone does things differently.

For the few rentals I did with strangers, I didn’t require anything until trip was booked, but I was not borrowing points. So I told them to pay as soon as I sent confirmation number. But I did tell them 100% was due within 24 hours.

As you say, with rentals you have control so if there is an issue you can always cancel.

Transfers you are stuck so trust is really a big aspect on both sides!

 

[robinb]

For the few rentals I did with strangers, I didn’t require anything until trip was booked, but I was not borrowing points. So I told them to pay as soon as I sent confirmation number. But I did tell them 100% was due within 24 hours.

As you say, with rentals you have control so if there is an issue you can always cancel.

Transfers you are stuck so trust is really a big aspect on both sides!

Like you, I never required payment until my renter received the confirmation and I don't borrow points to make a reservation. If I were a renter I would expect to see the reservation in my name before I paid for it. Doing that with borrowed points is dangerous in case the renter changes their mind.

 

[UtahDon]

I think most people would be comfortable paying upfront for a points transfer. If it was a particularly large transaction or someone new to buying points who is nervous about it, I might offer the buyer the option to go through escrow service of MY choice, with the BUYER paying the escrow fees if they are uncomfortable paying up front. Escrow fees are about 32 bucks per $1000... so a buyer could get the peace of mind from Escrow for about $45 if they were buying 100 points at 15/point as an example.

A simple google for "escrow service" will bring up options. Its fairly simple the money goes to the escrow and neither the buyer or seller can take the money until the points transfer. The buyer can't take the money back, and the seller cant take the money then refuse to transfer points. Everyone is protected for a small fee.

 

[Eldon32]

Thanks for the info. Since it's a small number of points, and from what I read many brokers are saturated right now, I think I'll attempt to rent them on my own.

For any reason that you just can't rent them, make sure to consider transferring them to RCI 45 days before they expire. You won't be able to use them at Disney, but I have found you can get about ~$10p/p of value in some instances at another resort if you end up traveling anywhere else. This way, they can last two more years (or up to 3 for a fee - I think it's $100).