Renting points to friends

[dafamily]

My wife and her friends are going to Disney for the half marathon next year. We are DVC members and are going to use our points. What price is fair to charge her friends? There are 6 total including my wife they will need a 2 bedroom. I think $13-$14 a point but my wife thinks that is to high.

 

[Cinderpamela]

I guess it depends what your goal is.
Considering that $14 is the price per point that they could pay to rent points themselves from Davids DVC Rentals or another point broker, I would think that charging that price per point to be not doing them any favors.

Especially considering that the owner of those points rented through Davids or other brokers is receiving approx $11 per point as reimbursement.

 

[dafamily]

I guess it depends what your goal is.
Considering that $14 is the price per point that they could pay to rent points themselves from Davids DVC Rentals or another point broker, I would think that charging that price per point to be not doing them any favors.

Especially considering that the owner of those points rented through Davids or other brokers is receiving approx $11 per point as reimbursement.

I'm not sure how to figure out how much to charge to NOT make a profit off of them but not have any money (other than my wifes portion) out of pocket. So, $13-$14 would be making a profit off of them?

 

[McCrae]

I would work it out this way:-

1) annual dues per point at your resort.= a
2) divide the price per point you paid by the number of years in your contract at the time of purchase = b
3) add a+b to give you the cost you pay per DVC point.

Doing it this way our cost is just under 7 per point.

If we were to look at dues only it would be less than 5

 

[hakepb]

A BLT lake view 2BR is 48 points a weekend night in January (or is that a different marathon?). So each person would be paying for 8 points/night

At $13/point, would it be worth it to pay $112/night to share a sleeper sofa and bathroom with others?

 

[Cinderpamela]

I'm not sure how to figure out how much to charge to NOT make a profit off of them but not have any money (other than my wifes portion) out of pocket. So, $13-$14 would be making a profit off of them?

I would tend to lean towards $10 - $11 per point, that way you are giving it to them for less than they would have to pay Davids... and getting the equal or close to amount reimbursed that you would get if you were to "rent" your points out to Davids.

I like McCrae's formula too, and you guys would be awesome friends to rent at $7 per point, but I think I would want to get reimbursed for at least close to what I would get for them if renting them out via Davids.

 

[crisi]

I'd charge them dues. Alternatively, initial point cost/life of contract + dues. If you need more than that for them economically, I'd refer them to the rent trade boards here or a broker. There will be hard feeling if you charge them $14 a point and they discover they could have gotten them cheaper elsewhere.

 

[jen2207]

Last summer I let my best friend and her family rent our points. They wanted a 2br lake view at BLT. We found the cash version of the room price (with any discounts) and I offered them the room at a little more discount from that price. It ended up being about $9/pt.

 

[bisney]

Assuming a 3 night stay and that you'd be booking a standard view, the difference between a studio and a two-bed would be 90 points. I'm assuming that your wife would have booked a studio anyways so having her friends come stay with her means an extra 90 points that you would not have spent otherwise.

I agree that $13-14 is way too greedy. Also, BLT may not be the most preferable location depending on the race (e.g. - an Epcot resort would be preferable for the F&W half)

You could net $11 through David's but booking to friends takes away some of the "risk" of booking to a stranger through Davids. So, if it were me, I would think a floor of your annual dues X 90 points or a ceiling of $10 X 90 points would be fair.

 

[elaine amj]

A BLT lake view 2BR is 48 points a weekend night in January (or is that a different marathon?). So each person would be paying for 8 points/night

At $13/point, would it be worth it to pay $112/night to share a sleeper sofa and bathroom with others?

I like going from this point of view.

I'm curious: is the group as a whole wanting to pay the premium for BLT Lakeview? Or do some prefer to spend less at a value? 4 people splitting a value room would pay around $30+ each. And would get to sleep on a real bed rather than a sleeper sofa.

Certainly though, you expect to pay a whole lot more for a deluxe. I guess a somewhat "fair" comparison is a room at the Contemporary. A typical discount is 30% off an avg rack rate of $450. So about $300+. 4 of them could split a room at the Contemporary (no sleeper sofa) for $75 a piece.

If your wife is the one who would really like to share a 2 bedroom place so all 6 friends can be together - then I think it is only fair to ask something reasonable when considering somewhat comparable accommodations.

Personally (and your wife's friends might be different), I would be expecting at least a small "deal" to stay in my friend's DVC. Not much - since I would not expect it to be unreasonable for my friend - but in my mind (and I don't know a whole lot about DVC), it should be cheaper to stay at my friend's DVC instead of getting a room at the Contemporary.

 

[jmail048]

I guess it depends what your goal is.
Considering that $14 is the price per point that they could pay to rent points themselves from Davids DVC Rentals or another point broker, I would think that charging that price per point to be not doing them any favors.

it should be cheaper to stay at my friend's DVC instead of getting a room at the Contemporary.

I agree nothing can influence a friendship or any relationship for that matter as much as money will. You don't want the "friends" coming out of it feeling like you ripped them off or even worse made money on them, tough spot to be in. If it were me I would try somewhere between 8-11

 

[AmberHeartsDisney]

If I took friends (meaning I invited them) I wouldn't charge them. I guess I was raised differently.

I would maybe suggest they buy you dinner one night at a table service place and call it even.

 

[RobynPrincess]

we are taking my parents and in laws later this year, we have a 2 bed and a studio (no one wants a sofabed!). we are renting them out the points at about $6 per point - but that is cause they are our parents. If we rented to friends I think the figure would be $10

 

[bumbershoot]

If I took friends (meaning I invited them) I wouldn't charge them. I guess I was raised differently.

I would maybe suggest they buy you dinner one night at a table service place and call it even.

I wasn't raised with timeshares, or inviting friends on the few vacations we got, in the life-lessons, LOL, but it doesn't feel right to me to charge IF I'm already going, either. I'm doing Wine&Dine. If I had gone alone I would have gotten a studio. Instead a friend was sweet enough to take me up on my invite, so I'm getting a 1 bedroom because we're grownups and shouldn't have to share a room. If she wants to buy me lunch or something, I won't say no, but I'm not charging her.

If I did want to charge my friends, I would take the difference between the 1 bedroom and studio (since I was going anyway) and charge her $10/point or just the dues for those points. If there were more people going with me, like with the OP's wife, that would then get divided more. Ultimately it would become almost nothing to each person. Take the dinner instead.

 

[Snurk71]

I just charged DWs sister $13 for one night at aulani in July - the going price I can get from strangers.

None of us are going with them though. I think that makes a difference. We went with them and DWs parents to DL a couple years ago in a 2br and they gave us $300/night for their share (they got the 2nd BR, in laws in the master, we were on the pullout) and a little of their parents (we combined on covering the trip for DWs parents for their anniversary). I think that was a pretty fair deal - they essentially got their own room/bathroom and shared the kitchen/living room for $300/night. Probably should have got more from them for covering part of the parents too.

Sent from my SAMSUNG-Note2 using DISBoards

 

[dafamily]

We were thinking Animal kingdom or SSR. Not Bay lake. This input it good, I appreicate it. Keep it coming.

 

[crisi]

We were thinking Animal kingdom or SSR. Not Bay lake. This input it good, I appreicate it. Keep it coming.

If that is the case, there is no way you should go higher than $11 a point - and probably less. Those resorts are generally available on short notice, and a lot of people will look for distressed points, then book those resorts last minute. Especially if they aren't going at a busy time of year for DVC members. With friends you don't want them sitting by the pool to discover that their friends rented them points for 14 bucks and the person in the lawn chair next to them got them from a perfect stranger for $7 - that's a good way to end friendships. They won't understand that your purchased direct BLT points cost you more money than the strangers "bought in 2010 resale in a down market" SSR points.

Unless you don't really like these people, then if they'll pay $14, take it and run.

 

[zavandor]

Last January I went to VGC with friends and booked two studios, one for them. I asked them the MF plus cost of contract/life of contract, just to recoup expenses.
Next January I'll go for the marathon with a friend, he'll stay with me in a studio and I won't ask him anything (I would have booked that studio anyway).

In your case, as others suggested, I would charge for the difference between what you would have booked and what you'll book, charged at around $7.

 

[Disneychix]

If I was inviting friends to stay with me I probably wouldn't expect much from them. Certainly not more than the cost of a room they could've booked themselves. I'm the one who owns DVC so the benefit of the kitchen area for a 2bdrm would be my expense. It's not their problem that the 'cost' of a 2 bdrm is so much higher than a studio.

 

[NoleFan]

I would charge them dues split between all staying in the room. If you wanted to charge more than that, I would go $8 which seems to be the going rate for distressed points. I know they are not distressed points but friends don't let friends pay retail.