Canceling

[kcmyluv]

When you rent out points to someone, what do you do if someone cancels on you?

 

[PamOKW]

You need to set the ground rules at the time you make the arrangements. Depending upon how far out you are from the actual trip and/or when your points will expire, you might want to think of making it "payment in full with no refund" and then, if there are extenuating circumstances, you could try and rebook the trip at a different time for the people. However, you should make it clear that there is no guarantee that you will be able to re-book for them. Be sure they understand upfront this is a person-to-person transaction. We just can't offer the flexibility a hotel can to take cancellations.

 

[RobDoc]

Some members won't even make a reservation without getting a non-refundable deposit in advance. Some renters feel no obligation when a reservation has been made at their request. In some cases, members have even made reservations within 30 days without any payment and then have to deal with the holding account when the renter does not honor the arrangement. Since the member is always in complete control of the situation, it's up to them to have a policy they are satisfied with before committing their points.

If you are further than 30 days out, there is no harm in making a reservation without payment, since you can always cancel the reservation and have the same points available again, but you will have lost valuable time with nothing to show for it.

Just be sure to establish rental policies that will protect yourself and that you are happy with and make them known in advance to any potential renter.

Good luck!

 

[senecabeach]

There are guideline rules at the top of the rent/trade board...including "written contracts"!! Check them out.

 

[JimMIA]

A lot depends on when the person cancels. In one sceanario, it may be a "no harm, no foul" situation where the points just go back into your account with plenty of time to re-use them. In that case, you have lost nothing but a little time. You may also have a great deal of flexibility to "work out" the renter's vacation plans to both of your benefit. In a different sceanario, however, cancellation could mean certain loss of the points.

As Doc has pointed out, it is very important that both parties have a crystal-clear understanding of what the groundrules are in a rental. Whether you do that with a contract, or written "policies" or just by telephone, it is critical that the person renting the points understands how you work in renting points. There is no standard practice, and every rental is different. Having that clear understanding is especially important near the end of your use year, when any problems are magnified by the approaching expiration of points, or in any situation where you have borrowed points for the ressie.

As Pam said, many vacationers renting points approach these transactions as "just another hotel reservation." If you don't tell them different, they think they can cancel by 6 PM on arrival date with no repercussions to either you or them. They're not bad people trying to cause you problems, but they're not psychics either.

A much more appropriate comparison to a DVC rental is renting a condo at an exclusive ski resort. There you pay a deposit up front, and usually have to have paid in full 90 days or more prior to arrival -- often six months prior. There is no cancellation. If you feel you need trip insurance to protect your investment in your vacation, you buy it. I would encourage any renters to protect their own vacation investments however they see fit. That's their responsibility, not the DVC owner's.

I think it is also important for owners to approach rentals as purely business transactions. I've seen a number of posts from owners who suffered cancellations and took all or part of the loss because they felt sorry for the person who had to cancel.

That's your call, but it's not very sound business practice...and it's also not fair to your family. In fact, it's a practice that just perpetuates the notion that people can cancel with no consequences. I would certainly do everything I possibly could to help a renter who encountered a problem, but I would not take a loss due to their cancellation.

 

[bicker]

When a renter of mine had to cancel, I worked my darnedest to find a replacement renter, and then transferred the entire amount the new renter was willing to pay to the original renter. I do see it in those terms though, that I'm working to help the original renter "sublet" the points, rather than taking them back and providing any refund. I made my alternative vacation arrangements with the money I got from my original renter, and was already risking that money with regard to changes in my own plans -- it wouldn't be fair to dump both my own risks and the renter's risks onto my shoulders alone. Luckily, for the original renter, my hard work netted my original renter every last penny she originally paid me.

 

[JimMIA]

Also, in case you missed it on the other thread, I have located at least one major insurer who will write trip cancellation insurance on timeshare rentals from private parties.

The company is Travel Guard, and I have used them before (including filing a claim). They are a very good company and widely used in the travel industry. Their website is www.travelguard.com and their toll-free number is 1-800-826-4919