Are Rental Contracts Necessary?

[TitzelFamily]

Hello - I am currently in the process of renting points for our vacation in Sept. and was wondering if I should ask the renter for a rental contract. Once the reservation is made in our name and we receive a confirmation number, can the reservation be cancelled without us knowing? What is the safest procedure for renting points? Thanks - I appreciate all advice.

 

[dzorn]

"A Word to the Wise"

While the DIS is very proud to share that we have a great record regarding any reported problems with Rent/Trade transactions accomplished as a result of this site, there are some precautions which we feel renters and members alike should consider before entering into any financial agreement.

Renters should ask for and receive a printed confirmation from the member. The confirmation is always sent to the member, but it should be made in the renter's name and forwarded to the renter. It will contain the confirmation number for the reservation and will allow the renter to call the resort directly to verify their reservation. The member will always retain control over the reservation. DVC has indicated in the contract documents that a rental agreement must be provided to the renter, identifying that the terms of rental will follow the terms the member has agreed to for DVC membership.

Members should be aware that they are subject to all reservation policies of DVC whenever they make a reservation- whether it's for themselves, a guest or a renter. If they make a reservation within 30 days of travel, they are automatically subject to holding account rules should they need to cancel the reservation. Members may want to insist on full payment from a renter before making a reservation within 30 days of arrival, as they will at least lose some value for those points should payment not be received.

Both parties should be aware that there is an element of trust required for these transactions. Both sides should be comfortable with the details of the transaction before agreeing to do business. Either party could have some costly disappointment if they do not prepare for these possibilities in advance. We suggest that renters should ask for (and check) references from the member they are working with as well as review past posts on the DIS by that member. Renters should have a home address and home telephone number for the member as a reference. When possible, we suggest that payments be made by credit card to have an additional level of security.

The following threads contain additional important information for those considering renting a reservation:
Attention Potential Renters – PLEASE, PLEASE, PLEASE …
Point Rental Primer
Effective DVC Point Rental Agreements


The above is from a sticky on the rent trade boards. It is really up to you if you want to use a contract or not, but if there is a problem with the reservation then it would help settle any disputes if it comes to legal action.


The owner of the points has complete control over the reservation and can cancel at any time. So would I trust giving someone a large sum of money and not have a contract. Nope.

Denise in MI

 

[NeedaVacation03]

I am not an owner, but a very happy frequent renter.In answer to the question about cancelling. It is my understanding that the owner can do whatever they want with the reservation. This transaction requires a great deal of trust. I have rented points for 5 years (many times from the same owners) and have always had a great experience. We have always had a contract. I also only rented from owners who have been on The DIS for awhile. You have to expect to pay a fair rate and not try to lowball the price. You do need to be sure of your dates and double check the owners policy on if you need to cancel or postpone.There is a post that explains the whole process on the rental board. You should read that also. It is a wonderful experience as long as you have trust in the owner.
Have a great vacation.

 

[disneynutz]

Hello - I am currently in the process of renting points for our vacation in Sept. and was wondering if I should ask the renter for a rental contract. Once the reservation is made in our name and we receive a confirmation number, can the reservation be canceled without us knowing? What is the safest procedure for renting points? Thanks - I appreciate all advice.

I wouldn't rent without something in writing, it's too easy for mistakes or miss understandings.

With the bad economy, there are a bunch of owners who have decided to become instant landlords, some know what they are doing and others do not.

Bill

 

[Dean]

Rental contracts are fine but it's far more important to make sure everyone is on the same page than to have a contract in writing. Also, a bad contract is far worse than no contract.

 

[JimMIA]

Rental contracts are fine but it's far more important to make sure everyone is on the same page than to have a contract in writing. Also, a bad contract is far worse than no contract.

For a small transaction like a DVC rental, IMHO the real benefit of a contract is that it spells out the responsibilities and expectations of both parties clearly. Such a contract is very useful because it clears up any areas of misunderstanding.

An overly-legalistic contract, IMHO, means whatever one party wants it to mean, and may cause more problems than it solves.

For a small transaction, contracts are really not practically enforceable even though they may be legally enforceable. The reason is, it simply costs more to enforce the contract (one lawsuit to get a judgment, and probably additional legal action to collect the judgment) that you will recover. Doesn't make much sense to spend $20,000 to try to collect $3,000.

 

[CarolAnnC]

For a small transaction like a DVC rental, IMHO the real benefit of a contract is that it spells out the responsibilities and expectations of both parties clearly. Such a contract is very useful because it clears up any areas of misunderstanding.

An overly-legalistic contract, IMHO, means whatever one party wants it to mean, and may cause more problems than it solves.

For a small transaction, contracts are really not practically enforceable even though they may be legally enforceable. The reason is, it simply costs more to enforce the contract (one lawsuit to get a judgment, and probably additional legal action to collect the judgment) that you will recover. Doesn't make much sense to spend $20,000 to try to collect $3,000.

Jim brings up some good points here. So the OP may reside in IL but the person they rent from may be from any of the other U.S. states which have their own particular laws. Knowing the law and protections (or lack thereof) in the state where the owner may reside and then enforcing such may not be realistic if something were to go wrong.

Definitely read the above mentioned posts on renting and get a feel for what you may or may not be comfortable with. Best wishes..