Purchased a timeshare with Disney Vacation Club and started to rent out using our DVC points to others to purchase. Am I doing this correctly listing as rental property

Yes.  You'll report this as a rental property on Schedule E (unless the rental days were 14 days or less- then you don't need to report the income). 

For more information see: 10 Tax Tips for Airbnb, HomeAway & VRBO Vacation Rentals