Cancellation Policy

[Luv2CtheMouse]

What is the cancellation policy when you are renting points for a DVC stay?

 

[erionm]

DVC's cancellation policy would not apply. It would be between the person renting the points and the member the points were rented from.

 

[Sandisw]

Different members have different rules. Most of the ones that I have read about have pretty strict cancellation policies so be sure you understand what you are agreeing to when you rent.

The main benefit of renting is saving money, but you do give up some flexibility that you have when you book directly through Disney, like the ability to cancel easily or the ease to change dates and the reservation.

 

[Deb & Bill]

Many members have no cancellation as their policy. You rented the reservation; it's yours. If you even need to consider what to do if you need to cancel, don't rent a reservation from a member. And that policy includes no refunds for most members.

 

[JimMIA]

IF the owner has a cancellation policy, I think there are two things to consider. The first has already been stated -- be sure you understand exactly what the policies are for deposits, payments, and cancellations.

Sometimes, you will hear policies of "Don't worry, we'll work it out if there are any issues." That kind of non-policy is probably the scariest scenario for both the owner and renter. I personally would run - not walk - away from a rental transaction like that, but some do business that way.

The other thing you have to consider is whether the owner's cancellation policy is realistic. I'm not talking about their intent; I'm saying to question whether you think they will actually be in a position to make a refund if a problem arises.

Many owners rent reservations to use the proceeds for other vacations (cruises, etc). Some rent because they are in financial trouble. The danger here is that they may have already spent the money you paid them and may not be able to refund your money...no matter what their contract says. If they don't have the money, they don't have the money. We had a case like that last year where an owner filed bankruptacy and the renters lost their money.

 

[Dean]

What is the cancellation policy when you are renting points for a DVC stay?

I would agree that the usual is non cancelable so you'd lose all money paid. You should talk to your renter.

 

[bytheblood]

I would agree that the usual is non cancelable so you'd lose all money paid. You should talk to your renter.

I agree, talk to the renter. We are in the process of renting points for our next vacation and I can tell you that the person I am renting from is willing to refund our money if we have an emergency and cannot go. So, not everybody will be the same.

 

[crisi]

I agree, talk to the renter. We are in the process of renting points for our next vacation and I can tell you that the person I am renting from is willing to refund our money if we have an emergency and cannot go. So, not everybody will be the same.

Wow. I hope your renter understands what they offered you - and you understand what you are getting. If you cancel on short notice (i.e. in an emergency), their points go into holding and become much more difficult for them to use at all - and very difficult for them to rent to someone else. The person you are renting from must be able to afford to take a lot of risk.

That's why a complete refund is so rare - especially on short notice. The ability to use the points from a canceled reservation is greatly curtailed - depending on the use year and the time of year - sometimes the points are useless.

 

[JimMIA]

If I were renting a reservation from an owner, I would prefer to have an absolute non-cancelable contract with no refund possibility.

Why? Because I think it protects both parties far more than any other arrangement.

With a no-cancel contract, I can go to Travel Guard (the same company that provides trip insurance to owners) and for a reasonable fee I can purchase trip insurance to cover my cancellation risk. With an iron-clad no-cancel contract, there will be no question of the claim being paid if I cancel for one of the covered risks. And the insurance will not only cover the full price I paid for the reservation, it will also cover flights, rental car, and any other non-refundable expenses I incur as a result of a legitimate cancellation. This kind of insurance is the standard way of covering cancellation risk throughout the travel industry and has been around for decades.

If I have a "we'll work it out" agreement with the owner, the travel insurance folks may well tell me to "go work it out." Or, if they don't think the owner's reason for declining to refund is sufficient, they could decline to pay. A no-cancel contract eliminates that area of uncertainty.

Also, as I said above, there are two considerations in cancellation agreements -- one is what the owner agrees to, the other is what the owner is actually able to deliver.

Times change, people change, and people's situations change. When you are booking a reservation many months in advance, an owner's financial situation could change drastically over that period and they might not be able to live up to their agreement.

 

[JimMIA]

In a recent thread on this same subject, someone brought up another very interesting point: What if the owners were approaching rental transactions as agreements they could cancel in certain situations?

Renters often want to cancel because of a family emergency. What if an owner's family had an emergency, and the owner wanted to treat them to a DVC stay to help out? (Don't laugh -- lots of folks did this after various hurricanes in the recent past.)

Renters sometimes want to cancel because a family member changes their mind about going. What if an owner changed their mind and wanted to use the reservation themselves?

Renters sometimes cancel because they found a cheaper alternative elsewhere. What if the owner canceled because they found someone willing to pay more?

Just a little food for thought.

 

[Dean]

I agree, talk to the renter. We are in the process of renting points for our next vacation and I can tell you that the person I am renting from is willing to refund our money if we have an emergency and cannot go. So, not everybody will be the same.

Essentially no one will allow that option across the board, one would be a fool to do so for all but very special circumstances like points you were going to lose anyway.

 

[dzorn]

I agree, talk to the renter. We are in the process of renting points for our next vacation and I can tell you that the person I am renting from is willing to refund our money if we have an emergency and cannot go. So, not everybody will be the same.

Well I would also make sure you get a definition of an emergency. What if your definitions don't match.

Denise in MI

 

[kaffinito]

The owner I used to rent from had a 90 day cancellation policy. If you canceled before the 90 day mark you lost your deposit (50%). She had a no cancellation policy after the 90 days. In other words, if you had to cancel after 90 days, you lost your $$$. I thought it was fair, and rented from her twice.

 

[bytheblood]

Wow. I hope your renter understands what they offered you - and you understand what you are getting. If you cancel on short notice (i.e. in an emergency), their points go into holding and become much more difficult for them to use at all - and very difficult for them to rent to someone else. The person you are renting from must be able to afford to take a lot of risk.

That's why a complete refund is so rare - especially on short notice. The ability to use the points from a canceled reservation is greatly curtailed - depending on the use year and the time of year - sometimes the points are useless.

Essentially no one will allow that option across the board, one would be a fool to do so for all but very special circumstances like points you were going to lose anyway.

Well I would also make sure you get a definition of an emergency. What if your definitions don't match.

Denise in MI

The person I am renting from also happens to be a friend. Should we have an emergency, she has 6 months to use her points...which she will.

 

[JimMIA]

The person I am renting from also happens to be a friend. Should we have an emergency, she has 6 months to use her points...which she will.

I'm glad you clarified your transaction, because your rental is far from a typical rental scenario. Your transaction is pretty unusual and without the clarification could have been very misleading to new folks who don't understand all the ins and outs of DVC.

 

[Dean]

The person I am renting from also happens to be a friend. Should we have an emergency, she has 6 months to use her points...which she will.

Not necessarily. If there is a cancelation within 30 days of arrival those points can only be used within 60 days arrival, cannot be banked and will be lost at the end of that UY. As Jim notes, this is far from a normal scenario and not reasonable either. It also has the potential to strain the relationship. Say you call them the day of arrival and cancel due to some emergency. In that scenario they will lose all their points but if not, their options are fairly limited. OR maybe they say no at that point because of the limitations I've mentioned.

 

[dzorn]

Not necessarily. If there is a cancelation within 30 days of arrival those points can only be used within 60 days arrival, cannot be banked and will be lost at the end of that UY. As Jim notes, this is far from a normal scenario and not reasonable either. It also has the potential to strain the relationship. Say you call them the day of arrival and cancel due to some emergency. In that scenario they will lose all their points but if not, their options are fairly limited. OR maybe they say no at that point because of the limitations I've mentioned.

And availability at less than 60 days may be none.


Denise in MI