DRI Rentals close to half of M/F's

[xnavyss Member Find all posts View Profile Close xnavyss]

The other day I posted about being in SHOCK concerning the 2010 M/F of $1,016.90 for a 2 BR Villa at Bent Creek Golf Village in Gatlinburg.

A few minutes ago, I received an email offering rentals for a 1 BR for $79.00 a night Sunday - Thursday and $99.00 per night for Friday - Saturday.

To name just a few of the others in the email:

Cypress Point Orlando, FL One Bedroom - $59.00 and Two BR $89.00

Powhattan, Williamsburg One Bedroom - $59.00 and 2 BR $79.00

Suites at Fall Creek - Branson Studio for $49.00 and a 1 BR for $89.00

Granted the email offers available for October.


IMHO, Having to pay almost $143.00 per night in M/F and then find they are renting them out, whether excess or not, can get you upset even more.


Thanks

Joe

[timeos2 Senior Member Find all posts View Profile Close timeos2]

An owner like all others

You do realize, at least at Cypress Pointe and I would assume the others as well, that the fees have been paid in full by the owner (which again seems to be Diamond). Thus like any other owner if they want to get something back if they are unable to use the time they are free to do so by renting and can rent for any amount they wish. The resort has the annual fees in hand. Any rent goes to Diamond. Unless they rent both the 1 and 2 bedroom for nearly the full 7 days they are losing money on the deal ignoring any advertising and other costs of rental. Why would this make an owner upset?

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

You do realize, at least at Cypress Pointe and I would assume the others as well, that the fees have been paid in full by the owner (which again seems to be Diamond). Thus like any other owner if they want to get something back if they are unable to use the time they are free to do so by renting and can rent for any amount they wish. The resort has the annual fees in hand. Any rent goes to Diamond. Unless they rent both the 1 and 2 bedroom for nearly the full 7 days they are losing money on the deal ignoring any advertising and other costs of rental. Why would this make an owner upset?

I can't speak for the other resorts but I can state that there has always been a credit for rental income at both the Villa's and the Suite's at Polo Towers. Exactly how much is taken in by DRI and how much is credited to the HOA/BOD I can't say. Nor can I say if it's DRI or the HOA/BOD that's doing the renting that generates the rental income credit on my MF statement. I can say that I don't recall seeing such a credit on any of the other timeshares we own.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

The other day I posted about being in SHOCK concerning the 2010 M/F of $1,016.90 for a 2 BR Villa at Bent Creek Golf Village in Gatlinburg.

A few minutes ago, I received an email offering rentals for a 1 BR for $79.00 a night Sunday - Thursday and $99.00 per night for Friday - Saturday.

To name just a few of the others in the email:

Cypress Point Orlando, FL One Bedroom - $59.00 and Two BR $89.00

Powhattan, Williamsburg One Bedroom - $59.00 and 2 BR $79.00

Suites at Fall Creek - Branson Studio for $49.00 and a 1 BR for $89.00

Granted the email offers available for October.


IMHO, Having to pay almost $143.00 per night in M/F and then find they are renting them out, whether excess or not, can get you upset even more.


Thanks

Joe

Discouraging yes and it makes you wonder about the value of ownership. If one can rent for less than the MF's, why pay out $30,000 up front plus $1,000 + per year. The arguement back in 1998 from DRI when we first purchased was that it was cheaper to own and that hotel room rates would be well over $100/night at this point. I suppose one can state that the majority of hotel rooms are over $100/night but, when you advertise condo rates at less than $100/night it really kind of hurts.

On the other hand, are these rates available to the public or, is this a perk of being an owner with DRI? If DRI is renting additional available space to owners at discount rates, one could consider this a perk of ownership rather than a slap in the face to those paying double in MF's. Rather than having to buy additional points, owners can rent for less than the MF of another unit if you don't mind taking what's available.

Silverleaf does this for their owners as well. But I actually think Silverleaf gives away un-reserved inventory at the less than 30 day mark and that's at all of their resorts. The thing is, you have to be a Silverleaf owner to take advantage of their bonus time.

For that matter, several tours we've been on have had some sort of bonus time they offer to owners. The thing is, you don't get the discounted rental rates UNLESS you're an owner. I know our HGVC account has rates available that are in the range of what you've posted with DRI. I know I've spoken with several HGVC owners that routinely take advantage of the cheap HGVC rental rates for extra nights or vacations. It's just that you have to take what's available and that means you can't count on it when you need or want it.

So long as these rates from DRI are offered to owners only, it really doesn't bother me. If they're offered to the public at large, it makes you question the value of ownership.

[chriskre Super Moderator Find all posts View Profile Close chriskre]

....... I know our HGVC account has rates available that are in the range of what you've posted with DRI. I know I've spoken with several HGVC owners that routinely take advantage of the cheap HGVC rental rates for extra nights or vacations. It's just that you have to take what's available and that means you can't count on it when you need or want it.

Doug,
Are these bonus nights available to HGVC resale buyers also?
I just purchased a resale and hope this is available to me too.
Haven't closed yet so eager to get my first ressie with HGVC.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Doug,
Are these bonus nights available to HGVC resale buyers also?
I just purchased a resale and hope this is available to me too.
Haven't closed yet so eager to get my first ressie with HGVC.

They're available to all HGVC owners including resale buyers. The only limitations HGVC has on resale buyers is you points purchased resale don't qualify towards elite status.

[longtimer Senior Member Find all posts View Profile Close longtimer]

It would be really nice if the extra rental income went toward lowering MFs for owners.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Thats how it's supposed to be

It would be really nice if the extra rental income went toward lowering MFs for owners.

Rental income from delinquent owners is supposed to go to all owners via revenue recovery. The management works to rent the time - hopefully for the maximum price they can get - then they get a commission (often 20-35,40% - usually toward the higher end). The balance goes into the resort revenue which lowers the overall bad debt. It also gets credited back to the delinquent owners but seldom comes close to covering the total due as there are also penalties, fees and interest added to those accounts.

The ability to keep delinquencies low and rental income as high as possible (in direct conflict with the owners desires for heavily discounted time being made available to them) is a key function of delinquency management. So if it is being done your desire for it to lower fees is a reality.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

It would be really nice if the extra rental income went toward lowering MFs for owners.

As I said, with Polo Towers, there is a column for rental income which does lower the MF's. The 2010 budget for the Suites at Polo Towers includes and estimated room rental revenue of 268,000. This estimate is lower that 2009's, which was 274,000.

[DRIvaDiva Banned Find all posts View Profile Close DRIvaDiva]

Qiong Wang, National Leisure Rental Manager, Diamond Resorts

"More than just a website, ResorTime.com's efforts can be directly attributed to increased rental business and I consider them to be an important partner in marketing our resorts."
Qiong Wang, National Leisure Rental Manager, Diamond Resorts

ResorTime.com Affiliate Center

[DRIvaDiva Banned Find all posts View Profile Close DRIvaDiva]

Qiong Wang, National Leisure Rental Manager, Diamond Resorts

"More than just a website, ResorTime.com's efforts can be directly attributed to increased rental business and I consider them to be an important partner in marketing our resorts."
Qiong Wang, National Leisure Rental Manager, Diamond Resorts

ResorTime.com Affiliate Center

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

There has been discussion on Timesharetalk Forum of DRI properties in Europe being availible to the general public on a fairly wide basis through discount hotel booking portal Booking.com: 71000+ hotels worldwide. Book your hotel now! for substantially less than m/f. When these are availible widely in this manner it makes those who paid a lot of money to own and then a lot of money in m/f's feel like fools.

Cheap rentals availible to the general public have the potential to destroy the ownership/exchange model of timesharing. Indeed they can also even impact the value of owning to use.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

Cheap rentals availible to the general public have the potential to destroy the ownership/exchange model of timesharing. Indeed they can also even impact the value of owning to use.

So are you in favor of rules prohibiting owners from renting units for less than the maintenance fee? Or from renting units at all - in keeping with the ownership/exchange model, shouldn't someone who can't use their timeshare be obligated to put the unit into an exchange pool to keep it inside the "timeshare community" instead of making it available to the general public?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

So are you in favor of rules prohibiting owners from renting units for less than the maintenance fee? Or from renting units at all - in keeping with the ownership/exchange model, shouldn't someone who can't use their timeshare be obligated to put the unit into an exchange pool to keep it inside the "timeshare community" instead of making it available to the general public?

The flood of cheap rentals is not coming from owners. It is coming from dumping from the likes of RCI and DRI, and that dumping is hurting the rental prices that individual owners get for the weeks they chose to rent.

[SmithfieldTim Member Find all posts View Profile Close SmithfieldTim]

Why Own, Renting is Cheaper.

That is the reason I got rid of my timeshare. I owned in Hawaii with Celebrity and I could rent my unit directly for $200.00 less than what I paid in Maintenance fee's. It makes no sense to own in cases like this. Had I owned with a company that cared about its owners, it might have been different, but I am sure those companies are few and far between.