DVC Point Rental Primer

[JimMIA]

The argument about the "trashing the room" was not very clear to me ? if the renter checks in and damages his/her room, the reservation is on his/her name, so won't he/she be held liable and not the owner ?

As Crisi said above, Disney might go after the guest, but ultimately we, as owners, are responsible for anything that happens with one of our points stays. There have been cases where room charges were unpaid and the owner's account was frozen until they were paid. I don't personally know of any room-trashing charges, but Crisi or Sammie might. Bottom line, the owner is ultimately responsible.

The argument about the renter being able to cancel the reservation seemed contradictory to what i've read; i thought working with an escrow account, the renter would lose the full amount +costs if he'd cancel for any reason.

The whole question of cancellations is problematic because there are so many variables, and there is actually no way for a renter to know how a cancellation will really affect an owner's account. And believe me, a LOT of owners (especially new owners renting "free" points they can't use) don't know either!

There are a lot of options to try to manage cancellation risk. I think the most effective method is to have the reservation be 100% non-cancelable for any reason, and have the renter take out trip insurance to cover their risk. That won't cover every risk, but neither will any other approach.

Escrow accounts are one option, but not very commonly used, probably because they are a little complicated, and also they could delay the owner receiving their money by almost a year.

In many cases, owners will draw up a rental contract that specifies situations and timelines for which refunds will be made. That is potentially a trap for both owner and renter, but it's often done. One problem with those clauses is they sound good on paper, but when a problem actually occurs there is often a disagreement about what constitutes a sufficient reason for canceling. Another big problem is that the owner may have already spent your money and may simply not have the working capital to make a refund.

One of my all-time Best Red Flags is the owner who says, "Don't worry, if a problem comes up, I'll work with you to work it out." That is code for "I don't have a clue what I'm doing." Those owners mean well, but they are leading the renter (and themselves) down a primrose path to trouble.

My fave is non-cancelable. That's the way most private rentals of timeshares, condos, vacation homes, etc. are done and there is a reason why it's the standard. People have tried the other options with limited success.

I'm just slightly more worried because i've been cheated before (not dvc) and being all new to this. No need to bite my nose off for being cautious and asking questions to understand this better

It's good to be cautious, but you should understand that fraud is almost never the problem with rentals. Misunderstandings and lack of understanding (by both parties) are much more common.

Your questions are perfectly sensible. Keep asking them. Nobody's "biting your nose off," or at least we don't mean to sound that way.

The bottom line, though, is that renting is not for everyone -- on either side of the transaction. Renting is one way to save money on one component of Disney vacation costs -- lodging. It's not the only way to save money.

There is an element of risk, and not all of that risk can be eliminated.

 

[hacknsuit]

so...as a renter..if the tenant doesn't pay their room tab or has damages, we're hosed

and ultimately our only recourse would be small claims court?

Definitely have to weigh risk/reward

 

[JimMIA]

so...as a renter..if the tenant doesn't pay their room tab or has damages, we're hosed

No, we're responsible.

DVC is exchanging the room with us - noone else - in return for our points. All points reservations are between the owner and DVC - nobody else can make a reservation with our points. In fact, MS won't even talk to anyone else about our points accounts. It's our reservation - no one else's.

If DVC gets stuck, we get stuck because we reserved the room and are responsible for it.

Incidentally, there are no big mysteries about this. It's right in the POS and many of the other DVC documents.

and ultimately our only recourse would be small claims court?

If we can't get the tenant to pay up, yes...which is to say NO recourse.

Definitely have to weigh risk/reward

Always.

 

[crisi]

Its a small risk. I've heard one rumor about someone getting stuck with charges for a trashed room - years ago for their own son and his college friends over Spring Break. And three(?) unpaid room bills which in none of the cases were a scam, and in all cases the owner was made whole. And I think two cases where the renter asked for an upgrade and got it - points coming out of the owners account for the difference (oops), and I've been on this board ten years.

 

[Sammie]

There is risk for both the person wanting a Reservation and the DVC member making it.

The guest has to trust the member to deliver what is agreed upon. That includes making the reservation, booking dining if wanted, setting up Magical Express if needed and requests.

The member is responsible if the guest damages the room and yes it does happen.

The member could also be in a fix, if the guest asked for an upgrade when they checked in for larger unit, or different view and it was granted and the extra points came from the Member's account. This actually is a very likely scenario if the Member does not notify DVC when booking that the person is renting. Members need to make sure they let MS know they are booking a rental.

The trust is a two way street and usually most problems come from lack of communication on both parts.

 

[hacknsuit]

The member could also be in a fix, if the guest asked for an upgrade when they checked in for larger unit, or different view and it was granted and the extra points came from the Member's account. This actually is a very likely scenario if the Member does not notify DVC when booking that the person is renting. Members need to make sure they let MS know they are booking a rental.
.

If disney doesn't officially recognize the renting process...how likely are they to be responsive to our notification to them that we are renting to a third party? If the renter knows they can ask for a "free" upgrade on us. I can't believe disney really cares about stopping them. Is it even good to tell disney we are rentlng points?

I find this interesting...looks like I'm going to be eating 250 points expiring in 11/10..just to aviod being gouged!

 

[JimMIA]

If disney doesn't officially recognize the renting process...

Disney does officially recognize renting -- it's in your POS. What they prohibit is using your account for "commercial purposes," as in buying DVC for the purpose of renting, or doing large numbers of rentals each year. There is absolutely nothing wrong with renting points you can't use.

how likely are they to be responsive to our notification to them that we are renting to a third party?

You'll get a variety of responses. Disney doesn't like renting, but they can't stop it because they do it in a BIG way themselves. So sometimes, you'll get a little attitude from an MS CM. If you do, just call back and speak with someone else.

 

[hematite153]

I find this interesting...looks like I'm going to be eating 250 points expiring in 11/10..just to aviod being gouged!

If you aren't comfortable with doing it yourself, use Daddio's service.

Or, find a member looking for a transfer. Once you have the money and the points are transfered then it's all up to them.

 

[mjy]

I find this interesting...looks like I'm going to be eating 250 points expiring in 11/10..just to aviod being gouged!

Which is why many people do not rent. Instead, they opt to transfer the bulk of their points to someone else. Once those points are transferred, they are no longer your responsibility.

 

[crisi]

Which is why many people do not rent. Instead, they opt to transfer the bulk of their points to someone else. Once those points are transferred, they are no longer your responsibility.

Or they don't rent to strangers. I DO tell people we own DVC, and a lot of them say "if you ever aren't going to use it...." I keep those folks, and a list of friends who would love to go to Disney inexpensively in the front of my phone book. We haven't had to use it yet, but if we did, we'd start calling and offer them points at the cost of our dues. It wouldn't be $10 or $12 a point, but it would cover dues that year.

 

[Disney-bound]

Amazing! I am new and looking into being a renter of DVC points. My family, friends and I all live in Australia and are looking forward to a Disney holiday of epic proportions over Christmas of 2012. To cut enormous costs, renting is looking like a viable option. Thank you so much for starting to make me feel a little more courageous as I begin my rental homework!

 

[djm195]

Amazing! I am new and looking into being a renter of DVC points. My family, friends and I all live in Australia and are looking forward to a Disney holiday of epic proportions over Christmas of 2012. To cut enormous costs, renting is looking like a viable option. Thank you so much for starting to make me feel a little more courageous as I begin my rental homework!

Sounds like fun!!!


Best,
David

 

[Billabongi]

I have been searching and looking around the boards but I can't see to find an answer to this, I may just be missing it.

If you rent points are there any additonal charges above and beyond the price per point, taxes or any fees at check in?

 

[JimMIA]

I have been searching and looking around the boards but I can't see to find an answer to this, I may just be missing it.

If you rent points are there any additonal charges above and beyond the price per point, taxes or any fees at check in?

No, unless you are getting the Disney Dining Plan -- and that is in a state of flux right now. There are no additional taxes or fees.

Previously, if you wanted the Disney Dining Plan, the owner would add it to your reservation and you would pay for it at checkin. Now, however, I believe it is necessary to pay for DDP when you book the dining plan (that can be after the reservation, as close as 48 hours prior to checkin). So under that new system, you might have to pay the owner first and then have them add the dining plan. If you want DDP, you would have to have the owner you are renting from get all the details from Member Services to be sure everything goes smoothly at checkin.

 

[Billabongi]

Thanks for the help!

 

[Speed Weasel]

No, unless you are getting the Disney Dining Plan -- and that is in a state of flux right now. There are no additional taxes or fees.

And that is one of the reasons that I highlight in my conversations with renters, that they save the 11.5% (or whatever it is now) hotel occupancy tax because they are staying at titled property. Avoiding that tax alone can add a couple hundred dollars to the savings column!

 

[KingRichard]

Question.

So when a owner or renter checks in they don't ask for a credit card?

Seems very strange to me why Disney would do that!

 

[WDWBlue]

Yes, at check in they will ask for a credit card for room charges. I've always given them one, so I don't know if it's required or not.

 

[CarolMN]

Yes, at check in they will ask for a credit card for room charges. I've always given them one, so I don't know if it's required or not.

It's only required if you want to charge things to your room or take advantage of the express check out.

You do not have to provide a credit card at check in.

 

[VrBchJ]

I never give a credit card on check in. So no, it's not required.