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How hard is it to find an owner to rent from at 11 months out?

Discussion in 'Disney Vacation Club - DVC' started by cbyrne1174, Sep 2, 2018.

  1. cbyrne1174

    cbyrne1174 Guest

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    Location:
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    Resorts Owned:
    Wyndham Smoky Mountains II
    Wyndham Royal Garden
    Wyndham Grand Desert Tower 2
    Wyndham Towers on the Grove
    I'm just curious how difficult it is to find owners willing to rent out 10-17 points for $14.50 a point who own at GF/BW/BC/Poly/WL/BLT if the renter is willing to pay in full via paypal upon reservation confirmation without having to worry about getting scammed?

    This make more sense to me than using David's because it cuts out the middle man and owners get paid in full upon booking.
     
  2. DeniseM

    DeniseM Moderator

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    Please be careful here, because we don't allow buying/selling/renting in the discussion forums.
     
  3. cbyrne1174

    cbyrne1174 Guest

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    Resorts Owned:
    Wyndham Smoky Mountains II
    Wyndham Royal Garden
    Wyndham Grand Desert Tower 2
    Wyndham Towers on the Grove
    I'm just considering the difference between owning vs renting. I was thinking of picking up a saratoga contract, but by the looks of availability at 7 months it seems like even if I were to own DVC, I wouldn't have access to studios at the resorts I mentioned very easily.
     
  4. noreenkate

    noreenkate Guest

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    IMO you will have difficulty finding an owner to rent 11months out for that price. Most seem to be charging around $17 pp.
     
    djohn06 likes this.
  5. heathpack

    heathpack Tug Review Crew: Rookie TUG Member

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    Location:
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    Resorts Owned:
    Hyatt High Sierra
    Disney’s Grand Californian and Hilton Head Island
    Marriott Barony Beach and Mountainside
    Sheraton Broadway Plantation
    So you’d just be looking for a single night in a studio?

    You could check out Mouseowners Rent Trade Buy forum.
     
  6. elaine

    elaine TUG Member

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    IMHO, it's a lot of work for a small amount of points, but I would consider it to someone who already owned DVC. Maybe buy at another resort, even if it costs a bit more, if you plan to regularly stay elsewhere?
     
  7. Dean

    Dean TUG Member

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    I doubt you'll have much luck at that price. Paying for a timeshare rental using PayPal is against their rules so I'm not sure that offers much protection. You should likely either go retail or through a broker based on your concerns. The 7 month window has some challenges but it's still workable for many situation. More difficult for some resorts and some times of the year and certainly for studios.
     
  8. djohn06

    djohn06 TUG Member

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    Resorts Owned:
    Disney Hilton Head, Bay Lake Tower, Boardwalk and Animal Kingdom Lodge
    Vistana SBP and SVV
    Westin Kierland
    Bluegreen Harbor Lights
    Wyndam Waikiki Beachwalk
    Quarterhouse New Orleans
    DVC resorts are easy rentals. Most private owners receive all funds up front. I would not consider that a perk.

    Maybe a newbie owner goes $14.50, but no one else would.
     
    Deb & Bill likes this.
  9. TravelTime

    TravelTime TUG Member

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    For so few points, why are you so concerned about the price?
     
  10. Cyberc

    Cyberc TUG Member

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    Unless owners have distressed points I’m not seeing it renting that low. In that case the points are no good 11 months out.
     
  11. icydog

    icydog TUG Review Crew: Expert TUG Member

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    I’d never rent my points out at that price. If you want a Hotel Based Disney Vacation Club resort then buy there. If you buy Disney’s Saratoga Springs Resort there is no guarantee you’d get anything in the sought after resorts at 7 months. I have seen some Boardwalk Villas, Boulder Creek, and AKV for less money than Beach Club Villas, Poly, Grand Floridian, BLT etc
     
  12. Commish_DVC

    Commish_DVC TUG Member

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    The price point is way too low - I have booked studios 11 months out for $16 - but no more - Since Disney one-time points are now $19 - anything under that is reasonable -
    I have had luck booking Poly studios at 7 months - believe its easier to piece together since there are only 2 room categories.

    I would predict that the DVC rental businesses will be raising prices in the near future - owners selling points to the brokers for $13-$14pp are short changing themselves IMO -
     
    TravelTime likes this.
  13. icydog

    icydog TUG Review Crew: Expert TUG Member

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    One time points to owners not to the general public. I rent my Disney's Beach Club Villas out for $17 plus PayPal fees. I would never use a broker. Points are easy to rent.
     
    lovetotravel77 likes this.
  14. sherakay

    sherakay Guest

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    Where are you renting them? We rented points for Aulani from a broker last year before we purchased, then after we bought SSR resale and Poly direct within a month of each other we rented our points back out to recoup some of the money we had spent on renting. We went to WDW last year in May but stayed in an offsite TS but May of this year we stayed on our own points at BLT and AKL-Kidani. I woke up seven months to the day to book those rooms while we were in Aulani so six hours earlier than those on the East coast have to wake up to book seven months out. We are skipping next year since we have a new baby coming in 39 days.

    We would like to rent out our 150 SSR points or 50 Poly points but not sure where is the best place to list them. If we could beat the broker price of $13.50-$14.50 that would be nice. We would like to use the $$ to do an Alaska cruise next Sep instead.
     
  15. TravelTime

    TravelTime TUG Member

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    When you rent out points and use it for another vacation, do you have to pay income taxes of it? Do you report your rental income on your taxes? If so, then renting our points is not very lucrative because you are losing 30-40% depending on what state you live in and your tax bracket. Can someone explain how this is supposed to work?
     
  16. Dean

    Dean TUG Member

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    You do owe taxes adjusted for direct expenses, mostly dues.
     
  17. TravelTime

    TravelTime TUG Member

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    So how does renting points make sense when you are losing anywhere from 20% to 40% to state and federal income taxes? It seems like it would not make sense especially for higher income DVC owners. I know everyone says exchanging on RCI is a bad use of points but it would probably come out the same or more expensive to rent out points, pay income taxes and then buy another vacation. If you use at DVC or exchange on RCI, you do not have to pay income taxes in the rental revenue. I guess it makes sense if your goal is simply to get your dues back plus a little profit after taxes. But when people say they are renting their points for double the MF, this is not resally true.
     
  18. sherakay

    sherakay Guest

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    Our tax penalty was just a few dollars because 1. You deduct your timeshare expenses from what you made. We just bought in so we deducted the full cost of what those points cost to buy divided by how many years are left on the contracts. For example, roughly $144/mo we pay for SSR times like seven years plus the few thousand we put down last year, that total all divided by like thirty something years, then that amount subtracts from what you received. Once you enter that in Turbo Tax your refund goes back up after entering the income took you down.

    2. We live in WA state, we pay no state income tax.
     
  19. TravelTime

    TravelTime TUG Member

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    That sounds like a good way to avoid paying income taxes on timeshares. If you add in the buy in cost, then you will rarely pay income taxes because there will rarely be a profit on paper.
     
  20. Dean

    Dean TUG Member

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    IMO buying specifically to rent doesn't make sense. It's a high risk investment and the returns are decent but not great comparatively speaking. As for exchanging it depends on what you exchange to. If it's something that would be cheap, I'd disagree, but if it's Maui 4th of July or similar it makes sense. An AI or MX in general really doesn't make sense. IF ones uses a broker it won't be double after taxes but it can be if you rent privately. Realistically the highest fed tax right now would be 24% on roughly half the rental amount.

    We also have no state taxes. Legally it's not feasible to deduct the cost of the item, only the yearly expenses and any advertising or similar direct costs. Unlike a condo, it's almost impossible to meet the IRS rules to be able to depreciate it. About the only way to do so would be if one owned a boatload of points and never used it for personal use.
     
  21. TravelTime

    TravelTime TUG Member

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    Profit on a timeshare would be taxed at the same rate as your overall tax. So it could exceed 24% especially in high tax states like California. Most people in California easily meet the 9-10% state tax rate and it goes up to 13%. Federal tax ranges from the 20s to about 37% right now. There are very little deductions now for “average” high income earners since SALT is now limited to $10,000. For us, I think we are better off using DVC points or finding a high value exchange.
     
  22. Dean

    Dean TUG Member

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    That's why I said fed rates, states vary and the deductibility of such state & local taxes is limited. But it's no more than 24% fed tax until your taxable income exceeds $315K ($340K before exemptions) and even then the 32% would only apply to the marginal amount. US of course. For me personally I want 20% return on a high risk depreciating asset. I just talked to someone recently that has almost 3K points and basically only uses them to rent so they may be able to meet the criteria to treat it like a condo and depreciate it. Still not a great choice in my mind but we've all done worse and if they get out when prices are up it'll work out even better. But the reality to someone that earns more and/or lives in a high income tax state is their costs are high no matter what unless they just spend everything. Even if they invest in things with deferred taxes, rates will almost certainly go up enough such that the fed taxes in 10-20 years on any gains will eat about as much as just paying taxes on it now with the added state taxes, generalizing of course. If we want to use these arguments to decide where to invest, I'm with you, look at all the variables that apply to your situation, make you're best assumptions, hope for the best and plan for the worst. Unfortunately many use these arguments to just spend the money and it doesn't measure up when it's used that way. I'd say invest AND budget for vacations, DVC should come out of the vacation budget and be looked at as money down the drain, anything above that is gravy.
     
    TravelTime likes this.
  23. TravelTime

    TravelTime TUG Member

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    Even if we assume that federal taxes are low i.e. 24%, almost every tax payer in California pays an average of 9% since the income level to reach 9% is fairly low for California. So we can assume the “average” person in California will pay 33% effective taxes, assuming they are middle income in California. That is a lot to pay out off the top from a timeshare rental and many of us are in higher income brackets. It seems to me that people should buy to use, and only rent as a last resort. For my family, renting our DVC points is not all that profitable after taxes.
     
  24. Dean

    Dean TUG Member

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    I agree that it's not worth it but if your "evil rich:)" and chose to live in a high tax state, that is a specialty situation that isn't going to apply to the majority of DVC members. And it applies to every single investment to some degree, that's why a lot of people move out of those states to lower tax states. It certainly can cause you to make different investment decisions. The reality is that if one bought retail a few years or more before and sold out now, the profit could measure up. But it was still a high risk venture, much like smaller to midsize company individual stocks but not penny stocks. But that assumes one sells out and for one buying in now or even if the person that bought years ago, the same is almost certain to NOT be true in a few years. Owning and keeping it from an investment standpoint is roughly the same as buying DVC at today's prices.
     
  25. Howdy_TX

    Howdy_TX Guest

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    I like to rent DVC - where could I find a place to find renters? I checked TUG - rentals - but haven’t seen any DVC -

    What is David’s posted earlier? Thank you

    Also - which DVC is good for kids 4-6-11-13 old ?
     

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