Rental Rates/Concerns

[Laurajean1014]

Someone posted that they would take $8 a point on a different thread. But no-one took them up on it, that I know of.

Although, I would not sell at $8, I doubt the buyer is going to find many people that will.

From what I see, $10.75 is the average price.

Remember: anyone can ask...

 

[wdwstar]

it seems like these renters are trying to set a trend and before you know dvc members might start lowering their rates just to rent their points.

i know these renters can ask all they want and we dont have to rent at $8 a point

i just got overwelm with all the posts lately offering $8.

hmmm maybe i can pick up some points for $8 a point
i know dream on....

 

[Tamar]

With the growing concern about owners responsibility for renter room charges, being stiffed on something, etc, I might still rent points, but it won't be to the renter who starts off asking for $8/point, even if they eventually come up in what they're willing to pay. Call me nuts, but those people seem like worse risks to me than those who start out willing to pay a fair price.

 

[DVCconvert]

am i the only DVC member that is concerned?

No. You are not. Only IF the points are to be lost to you within the next 60 days would I suggest $8 is a "good" price. Consider the 'alternative' for the renter.

 

[AFMom]

Ditto, Tamar!

 

[JohnNJ]

Sorry to break it to you guys, but it's more prevalent than you think. As a rentor and now as an owner, I can see it from both sides.

The rentor wants the lowest rate. $8 a point for a two bedroom villa the week after Thanksgiving comes out to around 30% off rack rate. Not bad but not the greatest discount I've seen. Remember that the rentor is assuming some risk, whether real or perceived. They want some kind of return for that risk. Most, if not all, of these rentals are non-refundable.

The owners may be reducing their rate because they don't want to hang around the rent/trade board for several weeks or months holding out for $10 or $11 a point. They drop their rate to $8 and they're done in a day. They weigh their time against the extra one or two dollars they'll receive. Some don't think it's worth it. They may just want to cover their cost which could easily be below $6. Quick nickels beats slow dimes.

It all comes down to supply and demand. If you think your points are worth $11 or $12, then hold out for as long as you can. Rentors don't really have any other place to go but here. But remember, with 80,000+ members, you may be holding out for a long time.

Edited to add: I was off on my discount calculation. Sorry.

 

[JimC]

Free markets have bid and ask prices. So people offering to rent at $x and those offering points at $xx does not surprise me. I think it is a good thing.

 

[WebmasterDoc]

I can recall when the "usual" rate was $8 and renters were offering $5-6. So this is nothing new. The only reason to rent from a member is to find a bargain and some are quite aggressive about getting that bargain ... and are often successful at it.

As for $8 being 30% off rack rate- I think the rack rate for weeknights the week after Thanksgiving is in the $725 per nite range for a BCV 2BR. At 32 points per night- the $8 rate would be $256 per night- a much better discount than 30% (especially when you add the tax on the $725). Even at $12 per point, the $384 is about a 50% discount.

JohnNJ is right though, some members are eager to get what they can easily and be done with the process. It will be interesting to see what effect the room charge issue may bring to rentals.

Stay tuned!

Edited to add that the $725 figure is for "Regular" season- the "Value " rate is $560 (plus tax) for rack rate at BCV.

 

[utahkennedys]

Since I have been watching the Rental board b/c I needed points to complete my Sept. ressie, I have noticed over the past month + that the people trying to get $11 are doing just that -- trying...still...not to say some don't rent at that, but the ones renting at $10 or less go a lot faster. As a DVC owner, I would be willing to transfer my points for probably less than $10 if I was in a pinch, but not rent them -- too much risk it seems.

 

[Martinvols]

I don't understand why someone would be willing to sell at $8/point. $11 or $12 seems more reasonable given that the initial invest is going for about $80 to $90/point --- plus, add annual maintenance fees of $4+/point. There you have it --- going market rate should be $11 or $12/point.

 

[Deb & Bill]

I know someone who just got a reservation in October for $9 a point. We were trying to talk them into buying DVC, but they said that they would just rather rent the points since they don't have to put out the money to begin with.

 

[CharlesTD]

Renters can ask for whatever rate they want but no owner has to go with that price. If hurricane season is that much of an issue for a renter they may as well stay in a moderate or value and have the opprotunity of getting thier money back. I won't let my points go for anything less than 12 dollars a point.

 

[LIFERBABE]

I saw that post and I had to LOL about the Hurricane season remark!

I dont think I would ever be that desperate to rent out points. If I were, I would give them to family or co workers or use them myself on a Poly LV Concierge!

I know all this free market stuff, but I look at the Dis as more of a community, and fair is fair, and I won't even deal with lowballers.

 

[Dean]

Anyone can offer, I hope they don't get takers. No reason to take it personally though. The only times I would get aggravated about it is when one was obviously trolling for cheap points by trying to convince members in general that the rentals were only worth less. It's happened on this board and on DVCtalk. I know one guy who tries to tell everyone their points are only worth $5-6 per point then he's looking for points to rent at that price range. He can have his belief, though I doubt even he really believes it, no matter how wrong he is.

 

[CarolMN]

Let's keep in mind that there's really no way for us to tell what is actually paid for a rental (unless we are a party to it). I've not seen any posts on the Rent/Trade Board from either an owner or a renter that lists the terms of their actual deal, LOL. Those looking for $8 may end up doing just that - looking, not staying.

I agree with Doc - there will always be those who like to negotiate for something less than the "Manufacturer's Suggested Retail Price". Maybe the posts for $8 just give others the idea that it's easy to get $8, so they post, too. Doesn't mean they end up getting someone to bite!

I remember at least one or two posts that mentioned that when they had to rent points, they got a lot of posts from people trying to get a bargain. IIRC, one of the owners said she just emailed back those folks saying her terms were not negotiable and hoped they found someone else to deal with. Believe she said she got her asking price - it was just a pain to sift through all those who were either looking for a bargain, trying to play one owner against another or just wanting to check availability.

Best wishes -

 

[tamu91]

This is one of the downside to free market economy Supply and demand will either raise the going rate or lower it. Like others have noted, I hope there are no takers @ $8/pt but time will tell.
I wonder if SSR is going to have an effect on the rental market once it's fully built?

 

[SoCalKDG]

I checked out a couple of those $8 posts. One guy moved up to $9 and got his points, the other guy had no responses.

I've noticed on Ebay that Studios usually rent for $11-$13 a point when offered as a 6 day/ 5 night vacation (Sunday to Friday).

If you want to rent, & have extra time, try this.

 

[Muushka]

Funny that you should start this thread today. Just about 5 minutes ago I was on the rent-trade board. I had put a reply to the "your points are not worth more that $8 because it is hurricane season" thread .My comment on that board was deleted (as usual ), but I still followed it.

When I saw the other post "will pay $8 a point" I decided right then to stop visiting the rent-trade board. It is something that we will not be doing in the future due to the "is this legal" thread, so why torture myself??

No flames from me. I totally agree.

 

[owtrbnks]

Well, all I can say is I was thankful to rent points for $10 each in order to stay at a DVC resort for a few days. It convinced me to become a member! So thanks to those of you who are willing to rent a few points before they expire. I understand your concerns and plan to try and "rent" my unused points to DVC members looking for a few points to fulfill their ressies, but I'll probably use mine and be looking to buy more!

 

[JimC]

I don't understand why someone would be willing to sell at $8/point. $11 or $12 seems more reasonable given that the initial invest is going for about $80 to $90/point --- plus, add annual maintenance fees of $4+/point. There you have it --- going market rate should be $11 or $12/point.

SSR
$98 divided by 49 years =$2.00 plus $3.83 current dues = $5.83 per point. $8 from a cost perspective is not hurting the seller. But the market of supply and demand dictates the price -- you need a willing seller and a willing buyer. It is real easy to show great value to the buyer at rental rates of much higher prices, particularly at peak seasons.