Guidance on Renting / transferring points

[royjack]

I am in the process of trying to rent some of my points, but I have never done this before. According to the Sticky, this is the place where I am allowed to ask questions. I am looking for a more "experienced" member to offer me some guidance. It would be appreciated.

I understand that I can only "transfer" points once a year. Does this mean a calendar year or is it "my" use year? Is this correct? Is there any fee or charge for borrowing points? If there is would it be appropriate to pass this on to the person asking for the reservation?

I have read the "Standard" agreement that is posted elsewhere. It appears that the common practice is that I must first "make" the reservation (and get some kind of confirmation) before I can ask for any payment. What happens if I make the reservation and the person changes his / her mind? Don't I somehow "lose" some or all of those points? It is my understanding that I would then be forced into only using them within a 60 day booking window. Does that also apply to the "borrowed" points? Essentially, my concern is that if I book the reservation and the person backs out - for any reason - then I not only have to still "rebook", but I will also be stuck with any of the additional points that I would need to borrow for the reservation.

Is it not proper to ask for some kind of up front depost before I make the reservation just to make sure that the person is committed to this booking with me? Any suggestions? Thanks.

RoyJack

 

[ChelleinNC]

I can answer a couple of your questions, I'm sure others will be along shortly to answer the rest

You can make & cancel a reservation without any penalty or holding as long as it's outside of 30 days of arrival (as long as it's for a DVC resort, there are different rules if you trade out). The 60 day booking rule only applies to points that are in a holding acct.

There are no fees to borrow points.

Most renters (if they're smart) won't send money without their being a confirmed reservation. Make the reservation, send a printed or email copy to the renter and have a deposit due upon receipt of the confirmation.

 

[royjack]

ChelleinNC, Thanks for the info. That is really good to know. So, I can go ahead and book without incurring a penalty.

Just so that I am clear, when I "book" a reservation, I am not at that point actually committing my points. The reason I ask is that in order to book this reservation, I will need to "borrow" some of the points from next year (as I have already banked all of my points for this year.) If I understand you, by simply making the reservation, I will not automatically "move" points from next year into this year with the result that I will be somehow "stuck" with more points to deal with in this year. Great!!

Can anyone answer the question on the "rules" for transferring? If I transfer points to another DVC member, I can only do that once a year. My "year" is March 1st. Is it calendar or my usage year? Can I transfer points this year and then again next year, or will I "use up" my right to transfer? Thanks in advance.

RoyJack

 

[Chuck S]

As far as borrowing, it depends upon which use year you are booking the reservation for.

Say you have a March use year, and have banked all of your March 1, 2008 points to March 1, 2009. If you rent points now, and the arrival date for the reservation is February 28, 2009, or earlier, points will be borrowed at the time of resevation for any nights prior to and including February 28, 2009. Even if you cancel the reservation more than 30 days out, those borrowed points have to be used by February 28, 2009.

If the reservation is for nights on or after March 1, 2009, there is no need to borrow.

Points have to be available at the time of reservation for the use year of travel.

Transfers are limited to one per use year, and must be within the same use year. For instance, you have a March use year. Since you've banked your 2008 points, those points can not be transferred. Your March 2009 use year points can be transferred to someone elses 2009 use year. So, I have a June use year. You could transfer points into my June 2009 use year, but not my current June 2008 use year.

 

[royjack]

ChuckS, thanks for clearing that up. What you are saying is what I feared was the situation. I have a March 1 use year. The proposed reservation is for January, 2009 (which is still in my 2008 use year.) Since I have now banked all of my 2008 points, if I book a reservation in Jan. 2009, borrowing points from my March 1, 2009 year, then I will be "stuck" with those points having to be used by Feb. 28, 2009. Since that is the case, if the person - for any reason - backs out of the reservation, I will not be able to put those future points back, and I will either have to rent them, transfer them or lose them! That makes this riskier for me.

Follow up on transfers. I understand (I think) that the one per year rule is based on my use year. However, I have now banked all of my 2008 use year points forward to 2009, but I have some points that were previously banked (from last year) that must be "used" this year. (1) I can make one transfer this year that would transfer up to 100% of the (previous year's) banked points, but whoever I transferred them to will have to use them up by the end of my use year, February 28, 2009. (2) On March 1st (if I don't borrow any more points) I will have essentially 2 years worth of points. The full amount from "2008," plus the full amount that I will get on March 1, 2009. If I understand you correctly, I may make a single transfer after March 1, 2009. Now. The question then becomes may I transfer the "banked" points from 2008 (that MUST be used in 2009), and may I include in that single transfer any or all of my March 1, 2009 points. I think I understand when they all must be used. What I am really asking is if I can "combine" those points in my once a year transfer?

I guess I understand why Disney imposes these rules, but it does make it a little tricky trying to clearly understand what I can and cannot do. One of the key reasons for asking is that I do not want to list rental or transfer points if I can't really rent or transfer them. I don't want to make any false representations.

RoyJack

 

[kristenrice]

Since I have now banked all of my 2008 points, if I book a reservation in Jan. 2009, borrowing points from my March 1, 2009 year, then I will be "stuck" with those points having to be used by Feb. 28, 2009. Since that is the case, if the person - for any reason - backs out of the reservation, I will not be able to put those future points back, and I will either have to rent them, transfer them or lose them! That makes this riskier for me.

This was the situation I was in too. I was renting points to a friend and he wanted to travel after I had already banked all my points for that year. I explained to him that I needed 50% payment BEFORE I made the reservation (which I would obviously give back if there were no availability) and then the other 50% about 5 weeks before their trip. ( I told you, this is a friend of mine so I was a little lenient ) I also made it ABUNDANTLY clear (this was the only part I put in writing) that if he should cancel the trip, at ANY time, all money that he had paid me would remain with me. At least that way, I was guaranteed to at least recoup my annual dues on those points, should he cancel after I borrowed the points.

If you are dealing with someone you know, then I would try and protect yourself and your points by requiring a hefty deposit before you make that reservation with borrowed points. I would stipulate that you would return the deposit if you were unable to secure a reservation, but otherwise, all monies paid are non-refundable. I know that a lot of renters might balk at the idea of sending that much money without a reservation in hand. I can understand that. I am just throwing out an idea for you. I think it would be highly unlikely to find a "stranger" that is willing to fork over a 50% deposit without a reservation confirmation.

Good Luck!

 

[Chuck S]

You may not transfer banked points to another member. You may rent a reservation using those points, but you can not transfer them to another members account.

Banked or borrowed points can not be transferred.