IMO if they rent for cash, at the level that
DVC does it, it's commercially regardless of how they obtained the points. If DVC only wanted to cover their costs, the cash bookings would cost less, much less. But DVC dont want to "just cover their costs" they want to make money - and preferably a lot of it.
If DVC really wanted to do define commercial renting for the sake of the members they would do so. But they aren't thinking about the good of the members, they look in their wallet. DVC have a $ incentive to not define it, except with a very vague definition, which some are now scared of and will refrain from renting, and that will most likely leave more breakage for DVC, or money in the bank.
Spec renting or any other renting should be treated the same. If I rented the hard to get rooms, value and resort view rooms for the entire year, I should be treated no differently than the member renting SSR 1BR for the entire year.
If the metrics are the same, then its 20 reservations.
I would hope that DVC, together with their members would mature and change how they see things as years go by. What was normal in terms of reservations, when DVC was born, could be seen as obsolete now. A member could easily have more than 20 reservations, in their own name just by trying to piece together a reservation or by making multiple reservations because their travel dates are not 100% until a few months before travel.
Nor sure I understand why DVC renting rooms on behalf of an owner trading counts against them because they are only taking inventory that matches the points the owner trades?
The room they took for my trade for an AP, counts against my membership..because I am using it the way it is intended to be used.
Sure, we assume they make a profit about what they paid for the trade…but even if they do, how is that different than you renting out a reservation for $20/point and me renting for $15/pt.
You don’t become commercial simple because you charged more, do you?
The purpose of the contract for commercial was intended to prevent people from turning DVC into a business vs buying for vacation.
The law allows owners of timeshares to rent their interests and that plays a big role in when DVC can step in and say they are no longer renting to a level the law allows.
The 20 reservations rules is a theshold…that’s it. If you exceed it, then DVC gives you the opportunity to discuss your situation. If they believe your reservations are within bounds…you are fine.
If they don’t, they have th right to cancel, at a minimum those over 20.
It still comes down to the fact that some see even minimum renting as commercial or that they look at the market as a whole vs each owner.
The contract only applies at the owner level and no matter what DVC decided to do, it must be charged against the owner.
We talked about it before but that 2021 FL 718.111 law is now in place and I think that plays a role in how far they can go with updating the definition of what patterns shift from allowed to not allowed…
There is no requirement that owners have to have a reason to rent…it doesn’t matter why…as long as they are not renting to the degree that becomes a commercial purpose.
So, where should that number lie? It’s going to be case by case…and why I think DVC has kept the commercial use policy unchanged…
Now, in the past, they allowed all 20 to be in the names of others, but they don’t have to still do that and that to me is where the flexibility comes in, for things like offsetting dues, etc.
I am keeping any eye out for any updated language when they load the amendments for 2025 that will have the offical approved budget.
No question there are owners out there who are renting a lot…and who should be in DVCs sights…but, there is no way to prove how many owners that is…and in the end, that is what should matter, shouldn’t it?
Hopefully, they continue to set common sense metrics. add in the case by case review, and enforce against those who are clearly renting a lot,
ETA: In terms of brokers, that is what I am talking about when people see it as commercial…you have no idea how many owners those reservations involve.
Owners renting with a broker doesn’t make it commercial…it’s about how many are attached to each owner.
So, unless someone knows for sure who the owner of that reservation is, and how many other reservations that are rentals they have, there is no way of knowing which ones are crossing the line.
And that is why you willl never know if someone got caught unless they share on SM they did.
We assume that certain brokers are the actual owners of those reservations but only DVC knows that…maybe they don’t actually own as many as one thinks?
And I know we have no way to ask for proof from DVC that they are going after owners that are renting a lot…
What we also don’t know is what level of legal hurdles happen behind the scenes. For all we know, they have looked into certain things and found it won’t work…or maybe they tried to enforce certain things and got shut down?
And, maybe they just believe that it takes a lot to cross the line, there are not a lot of owners who fit that, and just let things ride.
ETA: But the renting that happens because owners make choices to use their memberships for exchanges is a function of the program, unless you are suggesting that owners should no longer have options to use their points this way?
