Creating a better (?) rental agreement

[Terri2007]

Wow, it has been awhile since being on the boards and even longer since renting our points. We rented quite a few when we first purchased resale contracts because both were heavy with unused points. Certainly things have changed with having to pay up front for the dining plan as well as the recent info I read where Disney allows the renter/occupant to float $1500 in charges before actually charging their credit card.

It seems to me that one way to easily handle the dining plan is to build this into the fees (or have it charged to PayPal) and then the member calls MS and charges it. I don't think this would be a problem other then Disney continuing to use my credit card. I think in this situation once I received the money, I would buy a disney GC and then use it for the dining plan. Other then having to purchase the GC, there would be little hassle involved.

Also regarding the possibility of up to $1500 in charges not paid by the renter - do you think putting in a $1500 security deposit solely linked to unpaid credit card charges would go over with renters? This could also be easily refunded by PayPal, say one week after completion of the vacation when the member can confirm that there are no unpaid charges.

Again, I am not sure if we are ever going to rent again since we keep having to borrow points from future years. Regardless, I would like to have the option. Also, we stayed at BLT and my kids can't get over the monorail, so we may have to buy there....

Thanks for your input.

 

[rsimon]

I am not really sure why the $1500 charging privledges would be an issue. That feature isn't turned on, unless you put a credit card on file with them and they pre-authorize the $1500. The renter would be the one putting their credit card on file and with the preauthorization, there shouldn't be an issue.

The dining plan seems simple enough, you pay for it after the renter has paid you. The credit card you use for the dining plan doesn't remain on the room (or it shouldn't) so the charging feature wouldn't be turned on unless the renter gives them a credit card at check-in time.

Maybe I am missing something since I haven't rented before, but it seems simple enough.

 

[honeymo78]

The problem is that Disney doesn't preauthorize the 1500, they only check to see if the card is valid. If the renter doesn't have enough credit to cover the charges, the member's account is suspended until the issue is resolved.

Paying MS for the dining plan will in no way attach that account/card to the reservation. Either get the money from the renter then pay for the plan yourself, or get a cc number or gc number from the renter and pay for the dining plan that way.

 

[chalee94]

Also regarding the possibility of up to $1500 in charges not paid by the renter - do you think putting in a $1500 security deposit solely linked to unpaid credit card charges would go over with renters?

like a lead balloon...

if no one else does it, you'd have a hard time renting anything.

(i don't think i'll ever rent my points.)

 

[rsimon]

The problem is that Disney doesn't preauthorize the 1500, they only check to see if the card is valid. If the renter doesn't have enough credit to cover the charges, the member's account is suspended until the issue is resolved.

Paying MS for the dining plan will in no way attach that account/card to the reservation. Either get the money from the renter then pay for the plan yourself, or get a cc number or gc number from the renter and pay for the dining plan that way.

Are you sure on this? I could have sworn that I have seen my available credit drop on my cards when Disney is given the card. That would indicate a pre-authorization. I could be wrong, but like I said, I was sure I saw this in the past.

In any case, if Disney doesn't pre-authorize, they should. It puts a hold on that amount and then they can just bill the amount needed against that authorization. It would solve these issues.

Either that, or allow the person renting the points to dictate that the renter cannot have charge privledges on the room.

 

[chalee94]

Are you sure on this?

maybe they usually do. or almost always do.

but there have been a few cases where the renter leaves and the cc doesn't go through...leaving DVC to pursue to member for the money later on.

 

[honeymo78]

In the past 2 trips this year from May and Oct (as well as every trip I have paid for before that) we did not have any hold placed on our Visa debit card. There is sometimes a $1.00 charge to check to see if the card is valid which drops off in a day or so. On the day of check out, we are charged for whatever we spent. Even when using a credit card in the past, there has never once been an actual hold of any amount, regardless of what level of resort.

While a hold would protect members from the handful of renters not paying, I personally would not want a $1500 hold placed on my account. We don't use credit cards and I may not have that much cash available for a hold in my bank account depending on the trip. We never spend anywhere near that limit and don't budget to have that much missing from my account during vacation.

 

[Deb & Bill]

...Either that, or allow the person renting the points to dictate that the renter cannot have charge privledges on the room.

Not possible. They don't ask the owner of the points. They ask the person whose name is on the reservation.

 

[crisi]

The issues with room charging...

The people who have had problems have discovered them MONTHS later. Not a week after they get back. A renter is not going to allow you to hold onto their money indefinably.

There is no way to forbid your renters from putting on room charging. It is a standard deal Disney offers, and Disney is not interested in protecting you at the expense of making it easy for people to spend money in the parks.

As chalee said - if no one else asks, your renters will balk and find someone else. There are plenty of points out there to rent right now with the economy still in the doldrums.

The Dining Plan I'd add to the overall cost of the trip and take a 50% + dining plan deposit, the rest due 60 days out. And I'd get the deposit in my hands before booking the dining plan.

Renting your points - or renting points from an owner - is always going to involve risk. A contract is very useful for laying out your terms in a fashion that is clear (if you write a clear contract). Enforcing that contract, usually across state lines, if something goes wrong is a different matter entirely.

 

[cm8]

The issues with room charging...

The people who have had problems have discovered them MONTHS later. Not a week after they get back. A renter is not going to allow you to hold onto their money indefinably.

There is no way to forbid your renters from putting on room charging. It is a standard deal Disney offers, and Disney is not interested in protecting you at the expense of making it easy for people to spend money in the parks.

As chalee said - if no one else asks, your renters will balk and find someone else. There are plenty of points out there to rent right now with the economy still in the doldrums.

The Dining Plan I'd add to the overall cost of the trip and take a 50% + dining plan deposit, the rest due 60 days out. And I'd get the deposit in my hands before booking the dining plan.

Renting your points - or renting points from an owner - is always going to involve risk. A contract is very useful for laying out your terms in a fashion that is clear (if you write a clear contract). Enforcing that contract, usually across state lines, if something goes wrong is a different matter entirely.

I think it is an awesome responsibility that one should not take on too lightly. Trust is always a factor for either side. I can't believe that people thinks its okay to use others as their personal atm and don't give a flying fig as to how it may inconvenience them

 

[crisi]

I think it is an awesome responsibility that one should not take on too lightly. Trust is always a factor for either side. I can't believe that people thinks its okay to use others as their personal atm and don't give a flying fig as to how it may inconvenience them

I'm sad about it, but its unfortunately, all too believable. There are always those who will act selfishly - whether its showing up at dinner and "forgetting" to bring their wallet (time and time again), or conning someone, our just outright theft.

 

[jlewisinsyr]

Are you sure on this? I could have sworn that I have seen my available credit drop on my cards when Disney is given the card. That would indicate a pre-authorization. I could be wrong, but like I said, I was sure I saw this in the past.

I can guarantee we didn't have a hold this year, we had 4 rooms with charging privledges all to the same card. A pre-authorization would have reduced the available credit limit by $6,000 if they pre-authorized and I know our limit never changed until half way through we hit the limit on a few rooms and had the accounts reset (charged to the card) and then settled again when we checked out.

 

[disneynutz]

Disney doesn't pre-authorize credit cards, there is an added cost if they do. Can you imagine paying the added fee for millions of Guests?

Unfortunately things can go wrong when renting and that is a risk that both parties either accept or they don't.

Bill

 

[normr]

Has this happened to owners? Let me get this straight, someone rented points from an owner and then during their stay charged a bunch of charges to the room and the credit card was bad so Disney went after the DVC owner instead?

 

[Deb & Bill]

Has this happened to owners? Let me get this straight, someone rented points from an owner and then during their stay charged a bunch of charges to the room and the credit card was bad so Disney went after the DVC owner instead?

Yes, it has happened to owners who rented out a reservation. There are multiple posts about this.

 

[Sandisw]

Has this happened to owners? Let me get this straight, someone rented points from an owner and then during their stay charged a bunch of charges to the room and the credit card was bad so Disney went after the DVC owner instead?

Yes. They owner isn't forced to pay the bill but their DVC account is suspended until they contact the guest and have them settle the bill with Disney.

In reality, however, some have trouble getting the renter to pay quickly (or at all) and the owner is faced with having to pay up or continue to be locked out of using the membership.

 

[yfchen22]

Has this happened to owners? Let me get this straight, someone rented points from an owner and then during their stay charged a bunch of charges to the room and the credit card was bad so Disney went after the DVC owner instead?

Yes, it happened to me. The renter charged $1450, just shy of the limit on their credit card. Disney could not collect the money from credit card company. Several months later, when I tried to make a reservation, I couldn't do it unless the bill is paid. The renter was from Canada and I was not able to contact them through email, mail, and phone. We went ahead and paid the bill so we can use the points. Now I double check the phone and address of renters through internet to make sure the renter does live in a physical address.

 

[hollis]

Has this happened to owners? Let me get this straight, someone rented points from an owner and then during their stay charged a bunch of charges to the room and the credit card was bad so Disney went after the DVC owner instead?

Yes, I read about this in other threads. Like everything in life, it takes just one bad experience to hamper our trusts. Fortunately, the majority of people are really good people. Even in some of the posts about such problem which inconvenienced the DVC owner, the renter didn't do this intentionally.