The biggest risk of renting from a DVC owner is that you may end up becoming one yourself
.
I rented twice from the same owner and I was hooked. I had no problems at all with either rental transaction and we did not use a contract. We stayed in touch via e-mail and phone conversations. I never once had that "bad gut feeling" about any part of the process. It was very simple: I gave the dates and resort I wanted, he told me how much I owed him. When he received the confirmation from DVC, he scanned a copy to me and mailed the original.
Although it can be a painless and simple process, there will ALWAYS be the element of risk. In addition to an unscrupulous owner that may cancel your reservation, there is also the possibility of an "honest" mistake. For example, if an owner falls behind on their annual dues, any reservations they have may be cancelled.
An owner assumes risk too. For example, if a renter decides to smoke in the room, the owner can (and probably will) be held responsible for the fines. Any damage to the room and DVC will come after the owner, not the renter. So the owner wants to be just as comfortable with who they are renting to as the renter who is doing the renting
.
To the OP...here's the process that I went through when I rented.
1) Found an owner with points for rent.
2) Looked at the points chart and figured out how many I needed (84, in my case)
3) Owner confirmed that he had that many to rent and required $12/point ($1008); no refunds
4) Owner made my reservation in my name
5) Owner e-mailed me a scanned copy of the reservation and snail-mailed the original.
6) When I received the e-mail, I sent the owner a personal check for 25% of the agreed-upon payment.
7) 60 days before our trip, I sent him a check for the balance.
8) Somewhere in there I had him add our DME info and the
DDP to our ressie also.
I arrived at the Animal Kingdom Villas in October and enjoyed 6 nights in a savanna view studio for a hair over $1000. Rack rate for that stay was $440 + tax per night
!
The bottom line is that you can save a lot of money, but you also must assume the element of risk. Think of it as a priceline-type transaction. If you think you may need to cancel or you aren't able to deal with the lack of control, then a DVC rental is probably not for you.
Enjoy!