Disney Adds Enforcement Actions for Commercial DVC Point Rental Crackdown
Disney Vacation Club is taking another step in its years-long crackdown on commercial DVC point rental at Walt Disney World, Disneyland & beyond. There are now enforcement actions as part of a new use policy, strongly suggesting that DVC is listening to members and is adding teeth to enforce rules against ownership interests being used as business ventures.
This is the latest step in a multi-decade saga aimed at reducing abuse and misuse of DVC memberships that hurt everyone else. Frustration among regular Disney Vacation Club members who rent out points for personal use has bubbled over in recent years, with angry owners bringing it up at the Annual Condo Association Meeting and in various online forums.
The problem is that Disney Vacation Club has seen a proliferation of members who only have memberships as a business. They seldom, if ever, use it for their families or friends. You know that old adage about not viewing DVC as an investment? Well, they disagree and seem to be quite well bucking that conventional wisdom.
Not only do these commercial renters own tens of thousands of points, but they are efficient at exploiting loopholes and maximizing points. Behaviors like walking reservations, min-maxing speculative bookings for higher ROI, and more. Even if not technically against the rules, these practices are against the spirit of the membership and disadvantage everyone else who uses DVC as intended.
Commercial activity most certainly violates the letter of the DVC ownership documents, too. The Public Offering Statement has reflected this for years, indicating that Disney Vacation Club ownership is for personal use only, and that owners should not engage in any commercial activity related to their interest.
The most meaningful policy adjustment DVC has made in years aimed at targeting commercial rentals came last year. Over the summer, Disney Vacation Club updated the Terms and Conditions associated with making online reservations using DVC points.
Along with this, there’s now a checkbox on the DVC Member website during the final stage of the booking flow that requires owners to click a checkbox certifying the following: “I agree to the Disney Vacation Club Terms and Conditions, and I attest that this reservation is for personal use only.” There’s the same attestation required when booking reservations over the phone.
Following that, the topic of commercial renting came up again at last December’s condo association meetings. In response to multiple questions, DVC representatives indicated that they have increased staffing and resources to monitor bookings, and it’s our understanding that there has been some degree of enforcement actions in the last year. The extent of that is entirely unclear, however.
That brings us to the latest changes as of Spring 2026…
The company has once again reiterated that a Disney Vacation Club Membership is intended for personal use and enjoyment only. Governing documents prohibit Members from using their Membership for commercial purposes. Members are not permitted to engage in the practice of regularly or frequently selling/renting reservations booked using their Membership.
On March 31, 2026, DVC published the Commercial Use Policy for all Associations and all Members. The Policy addresses Member feedback and provides a clear definition of Commercial Use. Included in this Policy are possible enforcement actions.
The following activities, which are a non-exhaustive list of examples and without limiting any other possible factors, could constitute Commercial Use:
- A majority of reservations made by an owner or their associates, or a majority of the aggregate Vacation Points owned or controlled by an owner used by individuals or entities other than the named owner or associate.
- A majority of reservations or points owned or controlled by an owner are made or used respectively at resorts with overlapping room types and/or dates, regardless of whether the owner or associate is named as a guest on said reservations.
- Regular advertising by an owner (or someone acting at their direction) of the availability of points for rental, including but not limited to use of a dedicated website, social media account, page, post, third-party service provider, or on any other media or platform now known or hereafter devised.
- In any 12-month period more than 20 reservations are made by an owner and/or its associate and a majority of such reservations are not used by the named owner or associate.
- Conducting photography, videotaping, or recording on resort property that is used to market the availability of points for rental activity.
Enforcement of this policy may include any one or more of the following actions, without limitation, for a period of up to 24 months:
- Cancel future reservations
- Restrict access to online booking
- Restrict reservations to be made only in the name of the owner(s) and associate(s)
- Restrict reservations to be made only at the home resort
- Restrict ability to modify reservations including any name or date-based modifications
- Restrict banking, borrowing, and transferring of points
- Limit or remove access to incidental benefits
- Restrict adding associate(s) names
- Remove existing associate(s) names
- Restrict check-in activities such as use of online check-in, direct-to-room, or other mobile check-in options
Also notable from my perspective is that Disney Vacation Club indicates “in its discretion may elect to prioritize investigations and enforcement to Owners having an exceptional number of points or that make an exceptional number of reservations associated with a Club membership (in each case as compared to the ownership interest and/or reservation activity of the average Owner).”
In plain English, that means that DVC intends to go after the big fish who own thousands or tens of thousands of points as opposed to the Nemos of the DVC point rental ocean. Smart allocation of resources, and one that should be high impact, assuming anything happens in the first place (see below for more on that).
Here are additional answers to Frequently Asked Questions courtesy of Disney Vacation Club:
Q1: What is the Commercial Use Policy?
The Commercial Use Policy states the definition of Commercial Use and lists a sample of enforcement actions, as found in various governing documents, including but not limited to the Public Offering Statement, Membership Agreement, Home Resort Rules and Regulations, and Declaration of Condominium of each respective resort.
Q2: Why does DVC need a Commercial Use Policy?
The Policy addresses Member feedback and provides a clear definition of Commercial Use. Commercial renting has always been expressly prohibited since the origin of the Club. Included in this Policy are possible enforcement actions.
Q3: Can a Member rent out Points?
Renting points is allowed on occasion. Frequently or regularly renting/selling reservations is strictly prohibited. The intent of the Commercial Use Policy is to address Members who are engaged in the practice of frequently or regularly renting/selling reservations to the general public.
Q4: Can a Member gift Points to friends and family?
Although a DVC Membership is for a Member’s personal use and enjoyment, gifting points to friends and family is permitted.
Q5: What happens if a Member violates the Policy?
The Member may receive a letter from Disney Vacation Club Management, LLC (DVCM) with relevant information such as details of the infraction, associated dates and duration, and the potential enforcement actions.
Q6: What are the enforcement actions if a Member violates the Policy?
The Member may be subject to a number of enforcement actions as stated in Section 4 of the Commercial Use Policy. These include but are not limited to no banking, borrowing, or transferring of Points, no online booking, reservations can only be made in the Member/Associate name, restrictions to online check-in activities, and future reservations may be cancelled. Enforcement actions are determined at the discretion of DVCM, acting on behalf of the Associations’ Board of Directors.
Q7: Is there a difference between a broker and a renter as it relates to this policy?
Yes. Brokers operate marketplaces where Members may rent their points to others. A renter violating the policy would be engaged in the frequent and regular renting/selling of reservations associated with their Membership(s).
Q8: Can a Member rent out Points using a third-party website?
Frequently or regularly renting/selling reservations is strictly prohibited. DVC is not affiliated with any third-party rental websites. Members who use third party websites assume responsibility for any resulting consequences.
Q9: If a Member has additional questions, who should they contact?
Members can contact DVCM at [email protected]. Responses will be on a first come, first service basis. Note, the inbox is monitored Monday through Friday, 8AM-5PM EST except for major holidays.
One thing to underscore is that the recent rule changes do not prohibit the renting of Disney Vacation Club points.
What this prohibits is commercial renting of points, which is pattern of behavior. Those who are regularly and repeatedly renting out points for financial gain, and seldom using the ownership interest for their own families are those being targeted. While there’s no bright-line rule (presumably because many of these are sophisticated businesses that would tailor their behavior to fall on the “right” side of that), it should be fairly easy to surmise based on intent and frequency.
If you’re mostly using your DVC points and are only renting them out on rare occasion, you’re likely fine. It’s a smell test type of deal–you should know right now whether or not you’re a commercial renter. If you somehow don’t know, you probably aren’t.
Our Commentary
The big question is whether this time, it’s different?
DVC commercial point rental has been a known issue for as long as I can remember. Back on December 31, 2007, Disney Vacation Club amended the Public Offering Statement to clarify what constitutes commercial renting of points (h/t DVC News).
That commercial use policy made clear that DVC memberships are intended for personal vacation use. It reiterated that using the ownership interest for “commercial purposes,” then defined as a pattern of rental activity or other occupancy that could conclude constitutes a commercial enterprise or activity, is strictly prohibited.
The Public Offering Statement then went on to offer a new guideline that any DVC Member who makes more than 20 reservations in any 12-month period, shall be required to prove that all of those reservations are for the use of accommodations by the DVC Member, the DVC Member’s family and/or the DVC Member’s friends, and not for commercial purposes. This was then known as the “Multiple Reservation Rule.”
Digging back through contemporaneous forum posts, the reaction to that news back in January 2008 was eerily similar to the reaction to last year’s crackdown on commercial renting. It was a big problem then, and many members were annoyed by how pervasive commercial renting had become. It was a problem that needed to be stopped before it got even more out of hand. (If only those posters could see nearly two decades into the future!)
The only issue? I could find exactly zero instances of owners having DVC Member Services refuse to confirm a reservation or cancel a booking. Of course, part of this could be a matter of self-selection, as owners engaging in a pattern of commercial renting probably aren’t going to go into a hostile audience and air their grievances–that might fall on deaf ears.
But I would’ve expected to read or hear at least some reports of this happening over the last couple of decades. After all, there’s a lot of chatter about just how the commercial renters manage their memberships in order to run them like bona fide business investments. Given that, I think it’s fairly safe to say enforcement of that 2007 rule change was minimal, at most.
Maybe this time, it is different, though.
With DVC publishing the Policy Regarding Commercial Use of Vacation Points for all Associations and all Members on March 31, 2026, this is now the third time in the span of less than a year that Disney Vacation Club has addressed commercial rentals. If this supposed crackdown were only for show and to placate angry members, it seems like they would’ve implemented last year’s checkbox and left it at that.
Obviously, what enforcement actions (if any) are taken remains to be seen, but I’m more optimistic this go-round that Disney Vacation Club will take meaningful measures to address commercial rentals and the strain those businesses place on the system. That it’s not merely words this time, but will actually be accompanied by action. Even if it’s not widespread or doesn’t target every single commercial renter, the deterrent effect alone could be huge.
Nevertheless, I remain skeptical that Disney Vacation Club will actually do anything about commercial renting simply because it’s never really happened. Or at least, never visibly happened. It stands to reason that they already would have enforced existing policies in the last two decades or so if there was an appetite and legal grounds to do so.
It still strikes me as possible that none of this is legally enforceable. That the original contract language is insufficient for DVC to prevail if this were challenged in court, and all the subsequent guidelines and policy changes are simply a scare tactic. It’s not at all uncommon for lawyers to send toothless cease & desists or demand letters with zero intentions of ever acting upon them.
Accordingly, it’s possible that DVC is bluffing in the hopes that at least some percentage of commercial renters will be given pause about the change and voluntarily exit the market, and that will have a sufficiently positive impact on availability that members take notice.
Conversely, what DVC might be doing is playing 4D chess here, trying to reduce confidence in the DVC rental market among prospective rentees. Many Walt Disney World fans are risk averse. It’s possible that a not insignificant number opt against renting DVC points due to the risk and uncertainty introduced by this policy.
Even if enforcement action is legally uncertain (and honestly, I don’t know that it is–just speculating), it would arguably be worth it from Disney’s perspective to take that gamble in order to reduce confidence in the DVC rental market. That’s the cost of doing business, and there’s a decent chance those commercial renters couldn’t afford to take on Disney in court, even if they had a compelling case.
Or maybe this policy is simply being introduced to assuage annoyed members that DVC is making a good faith effort at eliminating commercial renting. So the next time someone inevitably asks this question at the December Condo Association Meeting, DVC leadership can point to this policy and hang up the ole ‘mission accomplished’ banner.
The other possibility is that Disney Vacation Club is concerned about the second order consequences of cracking down on commercial activity. I have no clue how many points are in the hands of for-profit businesses…but I’ll bet Disney itself has a pretty good idea!
If that number is as high as some rumors suggest, DVC might have very valid concerns about what happens if those points are suddenly liquidated via the resale market. After all, resale prices don’t exist in a vacuum. If resale prices plummet due to a sudden influx of points, the math on buying direct vs. resale changes.
That drop could become even more of a self-fulfilling prophecy if non-commercial 2042 owners see values take a hit, and decide to cash out while the gettin’s good on top of the commercial exodus. To be very clear, I have no idea whether this would happen in such a crackdown scenario. All of this is purely speculative.
Nevertheless, the point does stand that Disney Vacation Club’s primary goal is to sell more points. Pesky little things like “member satisfaction” must also be taken into account since add-on points are a big market (especially with new properties continuing to come online), but if DVC were concerned the consequences an actual crackdown would have on demand and prices, that would explain a lot.
That might be why they only paid face to prohibiting commercial activity back in 2007, and it could be precisely what’s happening again last year and in Spring 2026. Make regular members feel better that DVC is trying with this new policy, while not actually doing anything on the enforcement side.
Hopefully I’m wrong. Perhaps management is more motivated to actually enforce this new policy. Maybe things have gotten so bad that the risk to member satisfaction outweighs the second-order effects of the crackdown.
That DVC essentially had no choice but to act here, as ignoring commercial renting will have even worse unintended consequences in terms of families selling their personal-use points or declining to add on at the Island Tower, Lakeshore Lodge, etc.
Finally, if you’re a prospective rentee and are worried about how this could impact you, the jury is obviously still out on that. If you book directly with a commercial renter, you’ll have no recourse if your reservation is cancelled–except hoping they’ll refund your money.
It may continue to be the case that renting directly via social media and forums is fine, because this could just be another toothless scare tactic. Time will tell, but I know that I certainly wouldn’t be renting from Facebook or forums right now; I’d be sticking with the brokers and established marketplaces.
If you’re thinking about joining DVC, be sure to read our Ultimate Guide to Disney Vacation Club. This covers the pros & cons, resale v. direct, how much money you’ll save, and other important things to know before taking the plunge. If you still can’t decide whether membership is right for you, “try before you buy” with the recommendations in How to Save BIG on Deluxe Disney Accommodations Renting DVC Points.
YOUR THOUGHTS
What do you think about DVC’s crackdown on commercial renting? Think the Spring 2026 changes will actually result in greater enforcement action? Any firsthand experiences you care to share? Any other thoughts or tips to share? Any questions we can help you answer? Hearing feedback about your experiences is both interesting to us and helpful to other readers, so please share your thoughts below in the comments!
I’m not holding my breath either. BUT…
The one thing I will say that nobody is thinking about is that in 2007 it was much more difficult to recognize and make clear patterns of abuse. Even with advanced software, actual human analysts would need to do it.
Today AI software is able to absorb massive amounts of data and chart patterns in just a few seconds or minutes. It is likely much easier to identify and articulate patterns then lock down an account. And maybe DVC is actually doing it.
Maybe.
I did just rent points for a 1 bedroom at aulani in January. I guess it’s a risk but it was $1200 cheaper than paying rack rate?! I’ll take my chances I suppose. Even as a renter I am against large companies doing it but pro helping the average Joe make a few bucks off his points when needed. it seems to me that you could just limit the max number of points someone could buy which would probably put an end to the Full time businesses. but disney probably doesn’t actually care, the same way they look the other way at large travel agencies that rebate, even tho rebating is ‘against the terms’ they NEVER actually do anything, which ultimately hurts smaller travel agencies that can’t afford to basically give away their paychecks in the form of on board credit. if disney said “no OBC is allowed” anymore it would fix all of the problems but they probably never will. sorry went off on a tangent but it is related. it hurts some people and benefits others. Disney doesn’t really care as they get their money either way.
David’s is definitely just a marketplace. He’s a one-man shop up in Canada.
DVC Rental Store is something a little different. While they will profess to simply being an “intermediary”, they are under the same Keyholder Vacations corporate umbrella as DVC Retail Market (the qualifying real estate broker’s license for Retail Market is held by LaToya Cotton, wife of Keyholder Vacations CEO Nick Cotton).
DVC Retail Market offers an “Instant Quote” feature where they will make you an offer on any contracts you are looking to put up for resale, typically well below market value in return for the convenience of getting your money without waiting to find a buyer or go through any negotiations. A few articles online responding to the question “Should I use this website’s Instant Quote feature?” suggest that Instant Quotes for DVC contracts are roughly 20% below market value. With that option, Retail Market absolutely purchases and owns, at least for a period of time, DVC contracts and therefore is an “owner” under the DVC Public Offering Statement (POS). That much is factual. Anything beyond that is purely speculation.
The assertion by some however (purportedly supported by research of deed filings and the LLC’s that file them), is that the two arms of Keyholder are doing some sort of buy, strip, and flip operation. The suggested scheme is that Retail Store gets some number of contracts through their Instant Quote program at a price well below market, they list the points for confirmed reservations on Rental Store where they fully control and can maximize the per-point rental rate and can take 100% of the profit, then they re-list the stripped contracts back on Retail Market.
Sure, the stripped contract will list for less (maybe $10-$15 per point?), but if the contract was originally purchased around 20% below value to begin with, and if the points were then rented out at $30-$40 per point, there would (hypothetically) be a good bit of profit to be found in there since they could still ostensibly be listed at a price above what they were originally purchased for.
As I said, it’s purely speculation made by others, but readily available by searching the more popular message boards, and I have zero idea if it is actually happening, but the logic is there,
Just take a look at DVC Shop and they currently have 98 of the ‘almost impossible’ to get confirmed reservations for Value Studios at Animal Kingdom Lodge that they can make the most $$ per point on. These are the offenders that must be using scripts/bots to secure these reservations that all other members are trying to get. They buy the loaded contracts, secure the most desirable reservations to get the most $$ per point that they can get and then resell the stripped down contract. Rinse and repeat. This is the exact type of activity that needs to be stopped.
I don’t care about someone who has 500 points and rents out 400 points a year and uses the rental income to cover their dues and to use the remaining 100 points for a family vacation once a year. Even if the ‘majority’ of their reservations are for rental purposes. It’s these large entities that put contracts in multiple LLC names to be able to accumulate tens of of thousands of points at once in order to rent purely for large profits/strip contracts/resell/rinse & repeat that have to be stopped.
We used to go to Disney World about every other year. We’ve rented DVC points on many trips. We’ve heard the pitch from Disney on DVC ownership a few times and considered buying into the program. My sticking point was always the dues that can increase every year. The Disney DVC rep would say, ” Well, just rent out your points every other year, and renters will essentially be paying all of your annual dues.” My counter was always, if that is true, why wouldn’t I just rent points, pay essentially the same, without being committed to a 30, 40, or 50 year term! I guess this may be their way of dealing with that mindset. Our family hasn’t been to a Disney property since 2022. Too much of the magic has gone away, while the price continues to go up.
Is there evidence to suggest that commercial renters utilize bots? And if so, those can be defeated if Disney wants to properly invest in their reservation system. Back before online, you had to call down. If bots are not readily being used, do we have data to suggest these renters are causing issues for reservations? I would think regardless who owns the points, people would be constantly using them. Unless they are not? Therefore, I am not clear what the big deal really is. In the end, all DVC has to do is to look at the reservation history and it becomes pretty obvious who the bad actors are. As for 3rd party sites, as already mentioned, they do not own the points. They simply facilitate the renting between the member and the renter so that both parties feel safe and are protected.
I have mixed feelings about this. While I am against the idea of commercial renting, I have rented out points a few times. My kiddos are grown now and we can’t always vacation together. When we can it’s great to splurge, but if Mickey is so concerned about folks renting, perhaps he could do a better job keeping increases on DUES down? My dues are a fortune now. I can rent some of my points to help offset that and therefore I have kept my contract. This past year I rented a LOT of my points and used that money for an upcoming Disney cruise. Renting has made it possible for us – normal/not wealthy folks who are trying hard to save a lot for upcoming retirement — to enjoy our DVC trips but not go broke on the dues. I will be very sad if renting becomes illegal.
It will be interesting to see how this affects places like DVC rental Store and David’s rentals.
We are now hesitant to rent points for a big upcoming trip.
Will this policy have any affect on how many DVC rooms are on sale directly through their website the same as booking like a hotel room?
As an owner, who was a renter first, the number of confirmed reservations available to rent has absolutely skyrocketed over the last few years. Something definitely needs to be done to crackdown on the commercial renters. However, I am joining the chorus of “I’ll believe it when I see it!” And now, somewhat ironically, I have 33 points that I don’t think I’m going to be able to use that can’t be banked by Aug. 1, so I’ll be trying to rent them to someone. If they do crackdown, I hope that actual regular owners that would normally be using their points still have an option not to lose them.
To borrow a bit from Willie Shakespeare “. . . . . Full of sound and fury, signifying nothing.”
Good one. I immediately thought of the Upton Sinclair quote “It is difficult to get a man to understand something, when his salary depends on his not understanding it“ regarding the likelihood of commercial practitioners “voluntarily” mothballing their moneymaking operations.
I’m with you – I will believe they are serious about cracking down on commercial renters when I see proof of actual actions being taken. I have long contended that Disney has data showing that DVC “guests” spend more per person per day than owners do when staying in the same unit. And you know the Mouse has this data.
The problem is, if those renters had to book a cash room instead of renting a DVC villa, the Mouse would get the cash room revenue PLUS the per day spend, rather than just the per day spend.
We are renting points for the first time this year. It’s half the cost to stay at the GF through and company than booking the same resort room at GF. If the reservation was cancelled last minute and they refused to refund I would contact my Credit Card company and report the transaction as fraudulent and then pursue legal action. If I show up for my stay and Disney cancels last minute I would contact guest services and try to see what could be done and if their attitude is nothing and I have already purchased Tickets, made dining reservations etc…… I wonder if their are any legal repercussions, not sure but would definitely consult a lawyer about it.
If Disney is really cracking down, the easiest way to do it is to prohibit online check-in and require owner to show ID at check-in. Problem solved.
this
Disney says in the new regulations that *some* point gifting / selling is ok, it just can’t be done too often.
Dunno about that. I rented through David’s last fall, wouldn’t let me do on-line check in (I think it was just a computer glitch) Did check-in at the hotel desk at AKL, showed my ID, no issues. From the moment I made the reservation with David’s my name was listed on the Disney app. I guess if the owner is doing something “under the table” that might be an issue.
And cut their own financial throats? Shirley you jest!
So is David’s considered a commercial renter?
No, they do not own the points that they sell. They are just a marketplace for owners to rent out their points. What Disney is trying to crack down are, are companies that have bought a lot of points, then make reservations for high occupancy times, and then sells those reservations.
It was either last summer or two summers ago that there was a rash of posts in some of the FB groups (I saw maybe 5 or 6 different people) who found DVC had cancelled rented reservations.
It wasn’t a massive movement or anything, but it did happen, and was referenced a couple times in passing on a forum I visit.
In the end, it was mostly the customers complaining, but it would only take a handful every month or so to discourage more to become commercial renters without actually doing enough to stop the current ones and crash the resale markets. But it would be just enough “show of force” that members would “feel” like something was being done.
This seems like it could become a cycle for Disney – pressure to sell more and more DVC units and as people looking for a side hustle hear about the success of point rentals, they become a critical source of sales, especially if Disney continues building new units at a clip.
My thought is that long term, Disney needs to sweeten the deal for DVC owners a bit more. I’m not super plugged into that world but my understanding is that many perks and benefits have been cut.
I don’t think so. I’m pretty sure they are considered a marketplace. They don’t own the points. They connect those with points with point seekers.
As a prior DVC member, I am at a loss as to why someone would purchase points strictly to rent out. When considering the initial purchase price (even on the resale market), annual maintenance fees and the time and effort to facilitate renting your points, there are much better investments for your dollars that require much less of one’s time. When we were DVC members, we rented points out one time as a result of us having to cancel our own reservation. We also rented other member’s points when we had used all of our own. Our travel plans changed so we sold our DVC points (330) about 18 months ago after owning for 14 years. I looked at keeping the points and renting them out but the ROI could not be justified. Selling the points and investing those proceeds have earned much more than had we kept the points and rented. Time will tell if this continues.
Bill,
I’ve done the same math. There was an era when we joined where resales were very low…$49pp, for example, on large contracts at unpopular properties. Then it made sense. I don’t see the math now but if you could pick up stripped out contracts on the cheap maybe.
But there are undoubtedly people/companies doing it.
I used David’s for the first time last year. I’m pretty skeptical of things like this so honestly the only reason I trusted t”it was doing so much research on the process on this site and having you sing its praises. So thanks for that! I was honestly shocked at how easy and stress free the process was. I didn’t expect it to be as seamless as it was. So much so that I said afterwards that its the way I’m booking any trips going forward. So here’s to hoping it’s still an option down the road.
The proof, of course, will be in the pudding as they say. Lots of rhetoric in the past with little or no visible action or results. I think dishing out punishment publicly would go a long way to calm us owners and discourage commercial ventures. Something like an editorial on the DVC site that states that XX number of reservations were canceled due to rule violations or the XX number of memberships have had their banking etc. privileges revoked. I would not go so far as to name the members, but just a status update of what actions were taken.
In other words Show us and quit telling us that it is about to happen real soon now.
Totally agree. I wouldn’t expect it to be put up on the DVC website, but they could have an answer with a number at the condo association meeting.
maybe it’s obvious and I missed it while skimming the piece since I am not a DVC owner but how does someone make money renting out a place already paid for if the price charged to rent closely matches the cost?
It doesn’t closely match – depending on the room, it can be MUCH more. A few years back we had to cancel a trip in a boardwalk view room – we found a site that helped us rent the points for a little over $22/point (our portion, I felt sketchy about what they charged for it) Our cost to own those points- between the original purchase and the maintenance is still about $10/point. For a typical user this means if you buy double your points you basically have free hotels for life.
Multiply that by 1,000 points/year… Remember some people caught on to this early so their cost is maybe $1-2 + maintenance fees per point and have extended it into multiple memberships that are maxed out and it’s a side job. And that’s if you didn’t open a site and make it a career collecting an extra few dollars/point on every other person who wants to rent theirs out too.
Thanks S,.. sort of makes me wonder why every DVC owner doesn’t try to make a buck that way,. seems like a big mess
The conversation around our house went something like “we can do this and it will pay for us to majorly upgrade every trip we go on!” “Oh wait, I’m not a jerk” I have this darn kindness in me that makes me consider the needs of others more than my finances – which is getting increasingly unusual.
Because even if on the surface it’s just a cash making thing, it really does end up combining with the investment in bots – these commercial renters are managing to get all the best rooms right at the 11 month mark and the little guys get the leftovers for the most part because just like joining a queue, you can’t click faster than a bot. People say it was “better 5 years ago” all the time – but I can tell you around 2017-2018 I could easily get the boardwalk view rooms. Now at the Boardwalk I have to get the garden view- which costs as much as boardwalk but is NOT the same. May as well get “standard view” but those are also frequently sold out at the 11 month mark. First world problems and all.
S has explained this difference well. But as an Animal Kingdom owner, I’ll add that Jambo value rooms–mostly studios, then 2BR–are rare and highly sought after uses of points, and rental outfits do seem to have these items regularly. To wit, a business has July 2 (a 9 point room) listed for $396, which comes out to $44 per point. They have the next night, too, July 3 (a 12 point room since it’s a Friday) for $432, $36 a point. I bought when the market was high (early Covid), and these rates are still 3 or 3.5 times the cost of my points including buy in and annual dues.
In total, this outfit has 89 nights available starting in July (one of those is a long reservation that starts 7/31). There are 18 value studios, 31 nights in July means total possible of 558 nights. They are renting out 15.9% of those. That definitely makes it harder for individual owners to snag one of these reservations.