Question on renting out points

[chlwodud85]

Curious what is the advantage of renting out the points on your own vs renting them thru DVC Resale/David's DVC?

Are the benefit only the return on rental? I'm seeing people rent them directly to others for $20-$18 per point but David's payout $18-$16 (DVC Resale $16-$14.5)

Is Is less likely to get rented through the other sites?

Just trying to understand in case I need to rent out points in the future

Thank you

 

[mikeuno]

DVC members renting their points to another DVC member seems to avoid the markup rental companies must charge to stay profitable.

 

[Sandisw]

I rented through a broker and just found I liked having the middle man.


But, you can make more doing it on your own. You need to be sure you have a contract, and spell out all the terms /9 that both you and the renter are on the same page.

With a broker, they handle that. All you have to do is get it booked. For me, at the time. It was worth it.

 

[CarolMN]

A benefit is not having to find a renter on your own and not having to deal with the renter during the process. All that can take time.

Some prospects need a lot of hand holding. Some are high maintenance. Some aren't serious, but just checking availability /curious about how it works. Some ask for changes or want to back out. Some owners just don't want to deal with those folks and are willing to pay someone else to do it.

 

[we"reofftoneverland]

Curious what is the advantage of renting out the points on your own vs renting them thru DVC Resale/David's DVC?

Are the benefit only the return on rental? I'm seeing people rent them directly to others for $20-$18 per point but David's payout $18-$16 (DVC Resale $16-$14.5)

Is Is less likely to get rented through the other sites?

Just trying to understand in case I need to rent out points in the future

Thank you

Dvc resale forces you to give them your social security number and reports it to the irs. Whatever about the irs, I don’t like giving out my social. I don’t think David’s does but not sure.

 

[twoj]

I personally prefer having a middle man as inthink it takes some of the stress out of the situation and they can better manage the renters.

Are there any other places to rent through? I have listed my points through David’s with no response in a week. DVC rental store payouts seem too far below market. Looking for other options.

 

[mz-s]

There are a lot of tire kickers.

 

[CraigInPA]

The upside to using a broker is that they'll likely find someone to rent your points fairly quickly. However, they may not be able to find someone who wants ALL of them, and may ask you to borrow points from some future period to make the reservation if your stated number of rental points isn't sufficient.

The downside to using a broker is you're using the broker's contract when you rent points. David's recent contract with the DVC owner puts the entire potential liability on the DVC owner if there is a problem. David's contract with the renter shields David's from all liability and even offering a refund. So, if there's a force majeure event, David's gets paid; the DVC owner has to give a refund to David's (even if the points are then unusable), and the renter gets a voucher which they may or may not be able to ever use. The other issue with the broker's contract is that it is "no changes". If the renter has to change their dates for some reason, they're SOL, even if the owner may be willing to accommodate that change.

I prefer to rent my points directly, using my own contract. Yes, it's more work. There are a lot of people who want bargain basement last minute rentals (not realizing that those are basically impossible because of DVC's high occupancy rate), and people who can't do basic math (like $20 per point x 200 points = $4000) and are surprised at the total price. There are also people who are looking for options other than booking directly with Disney, and don't know how many points are needed for their stay (this is one feature that David's has solved, using their online calculator).

 

[FFMickey]

We just rented some points through DVC rental store. We got $18/point and got 75% of the funds deposited in our account the within 2 days of confirmation. Yes, you have to fill out a W-9 to get a 1099, but Paypal and Venmo's new policies will also make you fill those out, so you can't circumvent taxes now. We prefer not having to deal with the renter and we liked being able to choose a couple of rental requests so we were able to rent out the exact amount of points we had.

 

[chlwodud85]

Thank you everyone for the great information. This was very informative and helpful

 

[mikeuno]

Enjoy each day!
Have a great trip

 

[noisycricket]

Agree. Helpful thread. One question-- does anyone know how David's and DVC Rental compare as far as their contract with renters are concerned? Or do people think that the force-majeur scenario (nicely explained by CraigInPA above, thanks) gets handled in a similar fashion?

 

[noisycricket]

ok, that's two questions. Whoops.

 

[LADO]

I'm new to this also but to me (and all my research) it seems like places like Davids do all the leg work for you and therefore you do pay slightly more per point. I'm also finding that not all people use those services since they get paid less and they prefer using forums like this. Depending on what you're looking for, you may be able to find it on a forum like this and pay less.... if you have the time to figure it all out of your own

 

[DisneyBB]

I use Davids rental as I believe being from the U.K. I can’t use the other one? This time decided to book a cruise with points rented through David so no money has exchanged just booked a cruise through them. Went very smoothly and very easy to do.

 

[takemetomickey]

Question, when you rent for $18 a point to David’s, DVC resale, whoever, are you losing money? Do you pay taxes on the full rental amount since the IRS isn’t going to know your average cost per point? Or do you somehow just report any profit between your cost per point and the rental price per point and show some kind of supporting documentation? Do you pay FL, home state and TA taxes (which I’ve seen mentioned here and assume means travel agent tax but I’m not sure if that’s right)?

 

[Best Aunt]

Question, when you rent for $18 a point to David’s, DVC resale, whoever, are you losing money? Do you pay taxes on the full rental amount since the IRS isn’t going to know your average cost per point? Or do you somehow just report any profit between your cost per point and the rental price per point and show some kind of supporting documentation? Do you pay FL, home state and TA taxes (which I’ve seen mentioned here and assume means travel agent tax but I’m not sure if that’s right)?

When I asked the companies, I was told that David's does not issue 1099s to the owner for the rental income.

The DVC Store does not issue 1099s to the owner for the rental income if the owner chose to be paid through Paypal. They do issue 1099s to the owner if the owner chose to be paid by check.

I never heard of paying Florida tax (assuming you live elsewhere) or TA tax on DVC rental income.

 

[CarolynFH]

Question, when you rent for $18 a point to David’s, DVC resale, whoever, are you losing money? Do you pay taxes on the full rental amount since the IRS isn’t going to know your average cost per point? Or do you somehow just report any profit between your cost per point and the rental price per point and show some kind of supporting documentation?

For income taxes you can deduct dues for operating expenses but not capital reserves and also any advertising fees or other costs of finding a renter.

Do you pay FL, home state and TA taxes (which I’ve seen mentioned here and assume means travel agent tax but I’m not sure if that’s right)?
TAT = Transient Accommodations Tax, imposed by the local government on hotel/timeshare stays. There are no such taxes for the DVC resorts at WDW, VB, or HHI. At Aulani the guest pays the TAT to the resort at the time of stay, and it will be the same at VDH. At VGC the TAT is included in the dues paid by owners each year, whether they use their points at VGC or not.

 

[gharter]

We only rented points once, after the Co-Vid shut down and we had extra points. We used a company to do most everything for us. I had to get the reservation, then give them the information and I was done. They took care of everything else. Was really happy with how it was handled, no hassle on my end. Got 70% up front and the other 30% when they checked in. Could I have gotten a little more if I did everything myself? Maybe, or I could have gotten stuck with nothing. Not planning to rent again, but would have no issue using them again.

 

[_auroraborealis_]

It is worth remembering that just because you get a 1099 doesn't mean it is fully taxable, and just because you don't get a 1099 doesn't mean it is not reportable as income or taxable.

As ever, you should work this out with a skilled tax advisor.