Effective DVC Point Rental Agreements

[sbobbio]

I am new to DVC and the DIS. I am trying to figure out what to do with points (200 AKV) that I won't be able to use (new addition on the way) . My use year ends in December and I would have to bank by July 31. Should I be trying to rent or transfer these points at this time?

Just not sure what I need to do?

Thanks for the help

 

[mickeyfan0805]

I am new to DVC and the DIS. I am trying to figure out what to do with points (200 AKV) that I won't be able to use (new addition on the way) . My use year ends in December and I would have to bank by July 31. Should I be trying to rent or transfer these points at this time?

Just not sure what I need to do?

Thanks for the help

sbobbio - welcome to DVC and to the Dis. I am subscribed to this thread in order to keep the information that was posted earlier, however, you may note that there is not an active conversation on this thread (I believe the post prior to yours dates back more than 2 months). I don't know how many will respond to your question (and I am not one with much capacity to do so). If you are able, I would suggest posting a new thread with your specific question that will let some of the Dis-vets around here kick in for thoughts.

That said, I will also say that you will get greatly varying opinions about renting on this board. If you can use the 200 points next year before your UY, I would bank them. If not, your best bet is to look for a rent or transfer, and there is a plethora of information about renting already posted in other threads. Check out the stickies on the rent/trade board and do a couple of searches and you should find everything you're looking for.

 

[JimMIA]

Personally, I would bank the points if you can. You can never have too many points and banked points are like gold in the bank.

People often think of banked points only being available for one more year, but in practice that's not the way it works out. What happens in the real world is that the banked points are used first, leaving your current year points alone. You can't re-bank banked points, but using them keeps your unused current year points bankable.

Therefore, the actual effect of banking points is that some of them tend to keep rolling over year after year. We had 149 banked points four years ago, and we still have banked points today because of that rollover effect.

 

[JLitfin]

I would bank the points and than if you can't use them during the year in which they are banked than I would try to rent them before they expire.

 

[JimMIA]

I would bank the points and than if you can't use them during the year in which they are banked than I would try to rent them before they expire.

Even if you are determined to rent the points, this is a sound strategy. This would give you a full year (more, actually) to learn the ropes of renting and rent the points without worrying about whether they're going to become distressed.

Unless you need the cash right away, I'd bank and then decide whether you use them or rent them.

 

[Frisina04]

Just Subscibing, thanks

 

[xcheezhead]

This is all such great information for a newbie like me thank you all so much for all the great information!

 

[bonnielynn]

Personally, I would bank the points if you can. You can never have too many points and banked points are like gold in the bank.

People often think of banked points only being available for one more year, but in practice that's not the way it works out. What happens in the real world is that the banked points are used first, leaving your current year points alone. You can't re-bank banked points, but using them keeps your unused current year points bankable.

Therefore, the actual effect of banking points is that some of them tend to keep rolling over year after year. We had 149 banked points four years ago, and we still have banked points today because of that rollover effect.

Wow did the confuse me... I banked 148 from 2007 (my uy is June) and they said I had until May 31, 2009 to use (because they were given as incentive to buy).. and the 270 points from 2008 if banked could not be used until June 1, 2009 until May 31, 2010.. that leaves me to believe that I really have to be careful and decide if I want to take a vacation (that would require more than 148) before June of 2009.

did that make sense and am I wrong about that?

 

[Donald is #1]

Wow did the confuse me... I banked 148 from 2007 (my uy is June) and they said I had until May 31, 2009 to use (because they were given as incentive to buy).. and the 270 points from 2008 if banked could not be used until June 1, 2009 until May 31, 2010.. that leaves me to believe that I really have to be careful and decide if I want to take a vacation (that would require more than 148) before June of 2009.

did that make sense and am I wrong about that?

If you want to take a trip that is more than 148 points before June '09, then you can use your banked 148 points and then borrow some of your '09 points to make up the difference. So for example, let's say that your tip needs 200 points and is in April '09. Then for that trip you would use 148 banked '07 pts plus 52 borrowed '09 points. On June 1, 09, you would get your 270 banked '08 pts plus 218 '09 pts.

 

[bonnielynn]

If you want to take a trip that is more than 148 points before June '09, then you can use your banked 148 points and then borrow some of your '09 points to make up the difference. So for example, let's say that your tip needs 200 points and is in April '09. Then for that trip you would use 148 banked '07 pts plus 52 borrowed '09 points. On June 1, 09, you would get your 270 banked '08 pts plus 218 '09 pts.

That makes sense!

 

[bobby523]

This is great stuff! I'm new here and it has helped me learn about rental agreements and tips on how to rent my points! Thanks!!

 

[Sbacer]

Subscribing and it is always good to learn more!

Sandy

 

[kativ]

 

[JimC]

Thought I would update a prior post that had the original version of this document. Made some changes based on comments and in response to a thread about someone altering a reservation on site. Any point rental transaction is largely an agreement of trust. However reducing an agreement to writing clarifies responsibilities, helps prevent missed communication and complies with DVC requirements. This sample tries to cover a variety of situations that may be appropriate. Any agreement used should be reviewed by a qualified lawyer.

Sample Rental Agreement for Disney Vacation Club Points

This agreement is made the _____ day of ____________, 2009 by and between RENTER1 and RENTER2 (together “Renter”) and MEMBER1 and MEMBER2 (together “Member”).

Terms: $___.00 per point. In addition to payment for points, Renter is responsible for any exchange fees assessed for non-Disney Vacation Club Resort accommodations. Such fees are due at the time of the initial 10% Security Deposit, are in addition to the Security Deposit requirements and are non-refundable.

Renter agrees to provide the Resort with an acceptable credit card upon check-in for incidentals and any other charges imposed by the Resort connected to Renter’s stay at and use of the Resort.

Member will always retain control over the reservation. Renter may not sublease to a third party. Renter may not change the reservation in any way, at any time.

Renter will email Member a photo copy of his/her driver’s license or state approved alternate photo ID, the first and last names and ages of each person staying at the Resort, the arrival and departure days and dates, the Resort (first, second and third choice), the accommodations (studio, 1 bedroom, 2 bedroom, grand villa, etc – if you are flexible rank the order of preference) and any special requests (non-smoking, medical restrictions, and the like). The information provided by Renter shall be attached to and become a part of the Agreement.

Member will confirm availability with Member Services and make reservation in Renter’s name. At this time Member will provide the Disney Vacation Club confirmation number to Renter. 10% Security Deposit, plus exchange fees (if any) are due via PayPal.

Upon receipt of written confirmation from Disney Vacation Club (this takes from five to ten business days) and confirmation from PayPal of Renter’s initial 10% Security Deposit and exchange fees (if any); Member will fax or email the confirmation notice to Renter. The confirmation will be attached to and become part of the Agreement. At this time a payment of 20% of the price per point times the number of points required is due via PayPal. Confirmation is required from PayPal within 5 business days or reservation will be canceled and all monies paid to date by Renter shall be forfeited.

The balance of 80% of the price per point times the number of points required is due 60 days prior to the arrival date via PayPal. If PayPal does not confirm the final payment within 5 business days of the due date, the Member shall contact Renter to advise that PayPal must confirm the final payment within an additional 5 business days or the reservation shall be canceled and all monies paid to date forfeited.

If Renter wishes to change the reservation, Member will make reasonable efforts to assist Renter to make such changes. Renter shall be responsible for 100% of any additional points required, charges assessed or costs incurred to accommodate Renter’s changes. Payment for these changes shall be due via PayPal upon e-mail or fax notice from Member. Confirmation of payment for such changes is required from PayPal within 5 business days of such notice or reservation will be canceled and all monies paid will be forfeited.

If Renter wishes to cancel the reservation, Member will make reasonable efforts to assist Renter to cancel the reservation on a timely basis. Cancellation must take place 31 days or more in advance of arrival to avoid penalties. Renter will be repaid for any points that are not subject to any restrictions and are returned to their original Disney Vacation Club status and use year. Points that are in holding accounts, or are subject to banking or borrowing restrictions or are permanently transferred outside of the Disney Vacation Club Resort collection are repaid only if Member can rent them and only to the extent of any rental payments received by Member for such points up to and not to exceed the amounts paid by Renter. Member shall deduct any nonrefundable fees or costs incurred by Member prior to returning any monies due to Renter. Member shall return any monies due to Renter via PayPal within 5 business days of the date that such determination is made.

Members are subject to all reservation policies of Disney Vacation Club whenever they make a reservation – whether it's for the Member, a guest or a renter. If a reservation is made within 31 days of travel, Members are automatically subject to holding account rules should they need to cancel the reservation. Because of this restriction Renter must make payment in full via PayPal (must be confirmed by PayPal) before Member will make a reservation within 61 days of arrival.

Renter agrees to abide by all Disney Vacation Club terms, policies and rules applicable to Disney Vacation Club members and Disney Vacation Club membership. Renter agrees to be responsible for any unpaid charges or damages to the unit rented, including all contents and improvements, Disney Vacation Club property and Disney property during his/her stay that are assessed against Member or his membership. Any unpaid charges or damages assessed shall be reimbursed to Member via PayPal within 10 business days of notice to Renter. Sending a fax or e-mail copy of a Disney Vacation Club or other Walt Disney Company communication assessing the charges or damages shall satisfy notice to Renter. Any unused Security Deposit will be returned to the Renter via U.S. Mail 14 days after check-out.

This is an agreement to rent points that represent accommodations only. There are no ticket media, transportation, meals, transfers, insurance, or other items included.

Renter understands that Members do not get daily housekeeping services at Disney Vacation Club Resorts. If your stay is for less than eight nights, you'll receive Trash & Towel service on day four. If your stay is for eight nights or longer, you'll receive full cleaning service on day four, and Trash & Towel service on day eight. After that, the cycle begins again on day twelve. Day one is check-in day.

Pets are not permitted to stay at Disney Vacation Club Resorts, except for service animals as defined by the Americans with Disabilities Act.


Agreed and accepted on the date first shown above.



RENTER1 (Renter) Date Signed



RENTER2 (Renter) Date Signed


MEMBER1 (Member) Date Signed


MEMBER2 (Member) Date Signed

 

[Sid74]

Hi,

I just wanted to say thank you for this thread.

I have just rented some points out for the first time, they were banked points that were in danger of expiring unused, and thanks to the information and advice contained here, it has been pretty pain free.

I have found a great renter, and used a version of one of the contracts that some kind people have listed here.

Thanks for all the hard work,

Sid

 

[Deb & Bill]

Subscribing and it is always good to learn more!

Sandy

But you don't have to post to subscribe. All you need to do is click on the thread to open it up. Then go to Thread Tools at the top of the thread. Click on that, click on Subscribe and there you are.

 

[royjack]

This is now the SECOND time that I have tried to respond to this post.

I have now read EVERY single entry on this thread, from the beginning. I am not as technologically advanced as, say my teenage daughter, so I may have missed a few things. However, there were some questions asked that I do not think were answered. Specifically, there was at least one (more?) request for an agreement to cover TRANSFERS. I read a response that said all you had to do was "modify" the rental agreements, but that doesn't really make a lot of sense.

If I transfer my points to another DVC member (and I can ONLY do it once a year) then once the transfer is done, that is IT! They have the points. I do not. They do whatever they want to do, I am out of it. I do not really need to "modify" a renatl agreement, because (am I missing something?) none of it applies.

Is there ANY restriction on what points I can transfer. I have had MS tell me I cannot transfer "banked" points. I don't know why, but they said it. (They also told me that it was 100% illegal to rent / be compensated in any way, but that would appear to be false.) QUESTION: May I "borrow" points if I want to transfer more than 300?

Based on having now read ALL of the entries, I intend to rent as many points as I can. Being a cynic, I will take a deposit, but collect the FULL balance within a very short time. I will not delay payment as most do. Since I do not have a paypal account (or anything else) I will use the old fashioned method of asking for a check. OBTW: I will need to collect information about who will be staying there, but I do not agree with the suggestion of getting copies of driver's licenses. WAY too much information for me.

Roy Jack

FWIW - I echo ALL of the other comments of thanks to those of you who have been so gracious in sharing. This is a lot confusing and a little scary. You want to do the "right" thing, but you also don't want to be taken advantage of. All sharing is appreciated.

 

[Deb & Bill]

You cannot transfer banked points. You can only transfer out once per UY per master contract. You can only transfer current year points. The Public Offering Statement states that compensation for transfers is not allowed.

 

[royjack]

Thanks for the info! Much appreciated.

 

[stopher1]

Thanks so much for this thread, as well as the Rental Primer thread... we are now looking at the possibility of renting some of our points due to some timing issues. In the end it may or may not end up that we adjust our plans and bank them, or we'll try to rent them...but regardless this has all been quite informative and helpful. The sample agreements are great to refer to, and many good suggestions within the pages here. Thanks all!