Renting Points to Fund Resale Purchase Price

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
Yes that’s the way to go. It’s actually pretty simple. :-)
While that idea can work, in this case, the points in question expire August 31st. Booking ability won’t even happen until mid December.

I am not sure there would be any spec renting time periods that make that a strategy. That normally works well for 11 months out and as you say hard to get. By 7 months, most of that is booked.
 

eMoneyBug

Mouseketeer
Joined
May 1, 2012
Rental board here and Facebook groups, it honestly won’t be hard. Certainly you probably will miss out on the Dec 2020 hot rental month but if you can get some good studio dates booked at the in demand resorts as late as possible in 2021, with some work you probably could get $17 or more per point. If you don’t want to work so hard, can get $13-16 by just posting X points expire by X date, etc.
if you didn’t want to use the current points, I think you could easily sell them via transfer as GF is always in demand from fellow owners and Poly will be done with their renovation and there will be owners looking to grab your points for 11month booking window.
 

Ssplashhmtn

Earning My Ears
Joined
Sep 18, 2020
While that idea can work, in this case, the points in question expire August 31st. Booking ability won’t even happen until mid December.

I am not sure there would be any spec renting time periods that make that a strategy. That normally works well for 11 months out and as you say hard to get. By 7 months, most of that is booked.
Thanks, It is a good point - the 2019 banked points expiring end of summer 2021 will have less value, but it seems like there is some confidence on this board that it’s at least $10/pt and maybe $15. Recognizing there’s always risk, those dollars certainly make a big dent in the contract purchase price.

I was sort of hoping there is a high demand period late summer, but won’t count on as much from that.

Rental board here and Facebook groups, it honestly won’t be hard. Certainly you probably will miss out on the Dec 2020 hot rental month but if you can get some good studio dates booked at the in demand resorts as late as possible in 2021, with some work you probably could get $17 or more per point. If you don’t want to work so hard, can get $13-16 by just posting X points expire by X date, etc.
if you didn’t want to use the current points, I think you could easily sell them via transfer as GF is always in demand from fellow owners and Poly will be done with their renovation and there will be owners looking to grab your points for 11month booking window.
For the 2020 points (to be banked), in that case, I ”spec reserve” an end of year 2021 reservation, the busy season, but it’s a long time from now..... curious when does one typically get paid for the point rental? Upfront or closer to the stay? I was hoping to fund the contract purchase soon via rental. It’s not that I cannot swing the cash, but ideally it would be “cash in the door” sooner than later. I’ll want plan accordingly.

Also, for a high season “spec reservation” (December for example), would it be better to grab two shorter trips, possibly back to back (and have the option to rent those out to two guest parties?) or is it better to keep it simple, and grab a full week reservation and market that?

Thanks so much to all for passing along your experiences!! This is very helpful.
 
  • Deb & Bill

    DVC-Trivia Contest, Apr-2006: Honorable Mention
    Joined
    Mar 20, 2000
    Thank you, thats great...I’d be really happy getting $18 pp on most of them. How long did it take, and did you use a broker or the rental board here? Sure hope you can travel by Fall 2021!
    You'll never get $18 a point from a broker. You need to rent those out yourself and have premium properties and premium reservations.
     

    Sandisw

    DVC Forums
    Moderator
    Joined
    Nov 15, 2008
    Thanks, It is a good point - the 2019 banked points expiring end of summer 2021 will have less value, but it seems like there is some confidence on this board that it’s at least $10/pt and maybe $15. Recognizing there’s always risk, those dollars certainly make a big dent in the contract purchase price.

    I was sort of hoping there is a high demand period late summer, but won’t count on as much from that.



    For the 2020 points (to be banked), in that case, I ”spec reserve” an end of year 2021 reservation, the busy season, but it’s a long time from now..... curious when does one typically get paid for the point rental? Upfront or closer to the stay? I was hoping to fund the contract purchase soon via rental. It’s not that I cannot swing the cash, but ideally it would be “cash in the door” sooner than later. I’ll want plan accordingly.

    Also, for a high season “spec reservation” (December for example), would it be better to grab two shorter trips, possibly back to back (and have the option to rent those out to two guest parties?) or is it better to keep it simple, and grab a full week reservation and market that?

    Thanks so much to all for passing along your experiences!! This is very helpful.
    DVC busy season is October to mid January. Spring through a September is lower demand, with certain times more busy than others.

    Honestly, by the time you close, you will be looking at maybe being able to pick something from Thanksgiving through NYE.

    IMO, you are better off offering points for reservations of a renters choice. Again, we don’t know where the market is going and how impactful Disney discounts will be.

    Now, if you believe getting $10/point would make the purchase work, then anything beyond that is a bonus! Brokers pretty much offer around $14/$15 to owners That could be less if they have to reduce their rates.

    ETA: Be sure to also read the rules here for renting confirmed reservations. They are different than just offering points,
     

    Ssplashhmtn

    Earning My Ears
    Joined
    Sep 18, 2020
    Now, if you believe getting $10/point would make the purchase work, then anything beyond that is a bonus! Brokers pretty much offer around $14/$15 to owners That could be less if they have to reduce their rates.

    ETA: Be sure to also read the rules here for renting confirmed reservations. They are different than just offering points,
    I talked to one broker that felt unneeded points might be difficult for them (as a broker) to liquidate - there are lots of points in the market. The exception is short term distressed rental points, which are renting out fine.
     

    Sandisw

    DVC Forums
    Moderator
    Joined
    Nov 15, 2008
    I talked to one broker that felt unneeded points might be difficult for them (as a broker) to liquidate - there are lots of points in the market. The exception is short term distressed rental points, which are renting out fine.
    Thanks for the update. Yeah, the market is flooded right now and as mentioned, many brokers are trying to rent confirmed trips for renters who want out and are stuck now that resorts are open.
     

    eMoneyBug

    Mouseketeer
    Joined
    May 1, 2012
    Thanks, It is a good point - the 2019 banked points expiring end of summer 2021 will have less value, but it seems like there is some confidence on this board that it’s at least $10/pt and maybe $15. Recognizing there’s always risk, those dollars certainly make a big dent in the contract purchase price.

    I was sort of hoping there is a high demand period late summer, but won’t count on as much from that.



    For the 2020 points (to be banked), in that case, I ”spec reserve” an end of year 2021 reservation, the busy season, but it’s a long time from now..... curious when does one typically get paid for the point rental? Upfront or closer to the stay? I was hoping to fund the contract purchase soon via rental. It’s not that I cannot swing the cash, but ideally it would be “cash in the door” sooner than later. I’ll want plan accordingly.

    Also, for a high season “spec reservation” (December for example), would it be better to grab two shorter trips, possibly back to back (and have the option to rent those out to two guest parties?) or is it better to keep it simple, and grab a full week reservation and market that?

    Thanks so much to all for passing along your experiences!! This is very helpful.
    if you want to get cash right away, a few options: best is finding an owner to transfer your current points to, get paid right away and be done with the points. The other is if you rent them out via DIY, you make your own rules on what you want. Certainly more rules and requiring 100% payment upfront may lose a few potentials but if Disney demand is back for 50th it may not matter that much to a renter that really wants what they want.

    $10 rentals are for the situation like I have points expiring in 30days, my loss is your gain, $10, they go super quick. Even at $13 quick. Follow the rental threads here and join some FB rental groups and you’ll get the hang of it.
     

    Sandisw

    DVC Forums
    Moderator
    Joined
    Nov 15, 2008
    if you want to get cash right away, a few options: best is finding an owner to transfer your current points to, get paid right away and be done with the points. The other is if you rent them out via DIY, you make your own rules on what you want. Certainly more rules and requiring 100% payment upfront may lose a few potentials but if Disney demand is back for 50th it may not matter that much to a renter that really wants what they want.

    $10 rentals are for the situation like I have points expiring in 30days, my loss is your gain, $10, they go super quick. Even at $13 quick. Follow the rental threads here and join some FB rental groups and you’ll get the hang of it.
    Banked points can not be transferred so not an option for the 2019 points in the contract OP is considering.
     

    SL6827

    DIS Veteran
    Joined
    Apr 23, 2017
    Also be aware that with the pandemic, many owners and brokers are including language that covers another resort closure,

    One broker now requires an owner to return the money if that should happen.

    So, if you must get the rental income to make it work, I would not buy,
    Well that sounds encouraging. That would be the broker I would want to rent points from.
     

    HappyDisneyWife

    Powered by pixie dust... and espresso ;)
    DVC Gold
    Joined
    Jan 5, 2020
    @Ssplashhmtn There’s a lot of great advice here. From my own experience: just before covid hit the states I rented some AK points out using a broker. They were rented in hours. Post-covid I tried renting some BLT/Poly points at just slightly reduced rates ($18) bc they were good to reserve before the 11-month window hit. I offered money back if the resorts had to close down again- everything I could think of to help a renter feel confident. Anyway, there are so many distressed points being offered right now, that mine really didn’t have a chance. I didn’t want to just completely devalue my points (i.e. compete with distressed point pricing), so none sold.

    My family decided to swing by Disney for a few nights when visiting grandparents next spring instead of trying to rent right now 😉
    I’m sure I will rent again... just after the dust settles. pixiedust:
     

    Sandisw

    DVC Forums
    Moderator
    Joined
    Nov 15, 2008
    Well that sounds encouraging. That would be the broker I would want to rent points from.
    The broker though doesn’t return money but offers a voucher. So, as long as the renter is okay with that, at least it’s not a total loss
     

    StitchesGr8Fan

    DIS Veteran
    Joined
    Jul 17, 2009
    Keep in mind in the US you are supposed to claim the rental income on your taxes. You can also claim your dues for those points, but it still diminished the value proposition.
    (I know a lot of people don’t claim the income since the government doesn’t know you rented them out without a W2. But technically you are supposed to and I’m a rule follower and scared of an audit so I did.)
     

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