Is this true? Rental companies buying resale contracts to rent points out?

[CookieandOatmeal]

Not sure if everyone is aware but DVC launched their official FB group "Disney Vacation Club Neighborhood" a few days ago and in one post, someone said that certain rental companies were buying up contracts with the sole purpose of renting points out. Is that really happening?

 

[DebbieB]

Not sure if everyone is aware but DVC launched their official FB group "Disney Vacation Club Neighborhood" a few days ago and in one post, someone said that certain rental companies were buying up contracts with the sole purpose of renting points out. Is that really happening?

Not surprising, renting is becoming lucrative. I'm sure there are individuals out there who are buying contracts to rent either in full or partially. They just have to stay under the 20 reservations per year.

 

[_auroraborealis_]

If it is, Disney is allowing it to occur, since they could ROFR anything if they felt like it.

 

[DisneyRegulars]

I don't see how this is a bad thing. It keeps the resale market strong which is good for any owner that may someday need to sell. It keeps the dues being paid on all contracts, which lets face it, often times sales are owners in distress who wouldn't be paying dues. Rental brokers are no different than original owners with regards to booking rights, if they didn't own the points somebody else would and would be making reservations. DVC is designed for 100% occupancy year round, it shouldn't matter who owns or uses the points.

 

[Dean]

Not sure if everyone is aware but DVC launched their official FB group "Disney Vacation Club Neighborhood" a few days ago and in one post, someone said that certain rental companies were buying up contracts with the sole purpose of renting points out. Is that really happening?

Given DVC's rules and the attention they pay to this area, doubtful. Historically there were some big players who did that but I think all downsized or got out of the business with the 20 a year reservation limitation. I'm sure DVD watches the rental companies closely looking for any excuse to shut them down whether it be this issue or using copyright materials. And it wouldn't make sense for those into that business to put their company at risk to do so. More likely it's people who simply don't understand how the model works. Personally I think even in the best of days, they are barely skirting the issue with DVD.

 

[CookieandOatmeal]

Given DVC's rules and the attention they pay to this area, doubtful. Historically there were some big players who did that but I think all downsized or got out of the business with the 20 a year reservation limitation. I'm sure DVD watches the rental companies closely looking for any excuse to shut them down whether it be this issue or using copyright materials. And it wouldn't make sense for those into that business to put their company at risk to do so. More likely it's people who simply don't understand how the model works. Personally I think even in the best of days, they are barely skirting the issue with DVD.

Thanks for the explanation Dean.

 

[LAX]

Given DVC's rules and the attention they pay to this area, doubtful. Historically there were some big players who did that but I think all downsized or got out of the business with the 20 a year reservation limitation. I'm sure DVD watches the rental companies closely looking for any excuse to shut them down whether it be this issue or using copyright materials. And it wouldn't make sense for those into that business to put their company at risk to do so. More likely it's people who simply don't understand how the model works. Personally I think even in the best of days, they are barely skirting the issue with DVD.

Perhaps this is why the bigger rental brokers have such a backlog of requests. If they were renting their own points, there won't be the need to wait for them to come along from willing owners.

LAX

 

[Best Aunt]

Where is the 20 reservations a year rule? I'm curious because I haven't seen it.

(Not that it matters for me personally. I don't have a lot of points. I always use them myself.)

 

[supersnoop]

Where is the 20 reservations a year rule? I'm curious because I haven't seen it.

(Not that it matters for me personally. I don't have a lot of points. I always use them myself.)

The rule is that a contract cannot be used for commercial purposes. How they monitor and enforce that rule is based on internal policy. I don't know if the "20 reservations" assumption is based on experience, guessing, or leaked information.

 

[CarolMN]

It's not an official rule and as far as I know, you won't find it in any official DVC document.

The "20 reservation assumption" originated from letters that DVC sent to several members quite a few years ago. (The letters were shared with online communities by some of those that received them). These members generally owned large numbers of points that they were using for rentals. Letters indicated that 20 reservations i a 12 month period would trigger an "audit" of one's activity to determine if the member was using his/her membership for commercial purposes. As a result of the letters, several of those Members decided to either downsize their holdings or get out of the rental business all together.

We have not had any recent reports of such an audit occurring and do not know if DVC is still monitoring rental activity in that manner.

 

[Dean]

Where is the 20 reservations a year rule? I'm curious because I haven't seen it.

(Not that it matters for me personally. I don't have a lot of points. I always use them myself.)

I believe they have put it in writing previously but I'd not sure where it is now. Here's the FAQ on the subject which is a good summary of the POS on the matter.

Q.
As a Disney Vacation Club Member, can I rent my Vacation Points?
A.
Members may rent their Vacation Points. However, the use of your Vacation Points for commercial purposes is expressly prohibited. Commercial purpose includes a pattern of rental activity or other occupancy by a Member that the Board of Condominium Association, in its reasonable discretion, could conclude constitutes a commercial enterprise or practice.

The specifics could change but in the past they've said the start looking at 20 reservations per UY. It's not related to profit or number of points.

 

[Best Aunt]

Interesting. Thanks.

 

[mousefansmom]

I asked MS about this yesterday. The CM indicated that knowingly selling vacation points (not the whole contract, just extra points) to a broker could constitute "use of your Vacation Points for commercial purposes..." I wonder if they actually would go that deeply into a person who rented?

 

[BobNed]

Not sure if everyone is aware but DVC launched their official FB group "Disney Vacation Club Neighborhood" a few days ago and in one post, someone said that certain rental companies were buying up contracts with the sole purpose of renting points out. Is that really happening?

Just to clarify, that Facebook group is not official DVC in the least. It is not sponsored by nor sanctioned by Disney in any way.

This is the only "official" Disney DVC page on FB: https://www.facebook.com/DisneyVacationClub/

 

[Dean]

I asked MS about this yesterday. The CM indicated that knowingly selling vacation points (not the whole contract, just extra points) to a broker could constitute "use of your Vacation Points for commercial purposes..." I wonder if they actually would go that deeply into a person who rented?

I think it's common for CM to be ill informed in these areas and/or even activist at times. This is not a MS frontline CM issue. Since renting is expressly allowed, it'd be difficult to make the case for limited activity related to the commercial renting provision. DVD would have to be on firm ground if they acted in this area. I believe the 20 in a year is a reasonable line in the sand, I doubt they'll tweak it but you never know.

 

[KAT4DISNEY]

I asked MS about this yesterday. The CM indicated that knowingly selling vacation points (not the whole contract, just extra points) to a broker could constitute "use of your Vacation Points for commercial purposes..." I wonder if they actually would go that deeply into a person who rented?

There have been MS CM's who have told people that it was prohibited to rent too - except it's specifically allowed. Disney knows about brokers. The original practice that they used was to be added as associates into a members account and then they handled the bookings too. Disney then made a rule about associates which effectively eliminated this action. If what the CM told you was true I think Disney would just find a way to shut them down.

 

[ljcrochet]

Just to clarify, that Facebook group is not official DVC in the least. It is not sponsored by nor sanctioned by Disney in any way.

This is the only "official" Disney DVC page on FB: https://www.facebook.com/DisneyVacationClub/

The official dvc page that you linked has the link to the new facebook group.
"Welcome to Disney Vacation Club Neighborhood, the official Disney Vacation Club Facebook Group. Disney Vacation Club is Disney’s version of vacation ownership. Disney Vacation Club Members and guests gather here to freely ask and answer questions about the magic of Membership, sharing tips and insights based on their personal experiences, with no interjection from Disney Vacation Club itself, except as set forth in the Page Rules below. Whether the stories shared in this group help you get more from your Membership or simply learn more about Disney Vacation Club, welcome home."
What makes you think this is not an official dvc group?

 

[BobNed]

The official dvc page that you linked has the link to the new facebook group.
"Welcome to Disney Vacation Club Neighborhood, the official Disney Vacation Club Facebook Group. Disney Vacation Club is Disney’s version of vacation ownership. Disney Vacation Club Members and guests gather here to freely ask and answer questions about the magic of Membership, sharing tips and insights based on their personal experiences, with no interjection from Disney Vacation Club itself, except as set forth in the Page Rules below. Whether the stories shared in this group help you get more from your Membership or simply learn more about Disney Vacation Club, welcome home."
What makes you think this is not an official dvc group?

I joined the group. First off, it is a private group. Why is that? I was a part of the group for less than a day. More than half the posts were comprised on fights, arguments, misstatements, outright false statements, and misleading statements at best. All of which were posted as factual. One post was about resale restrictions from April, 2016 posted as "new" restrictions as of today which resulted in over 100 responses in an hour or so. Hardly seems official to me. Oh - and the two "moderators" don't even have profiles with pictures. Very weird group for something supposedly "official" Disney.

 

[bumbershoot]

This looks like another mom's group (or whatever it's called). Useless. They should just point people HERE instead of making these groups...

"it's official because we made it, but we won't be involved in it and you guys can just talk among yourselves".... Why not put THAT in the About section?

 

[disneynutz]

If Disney feels that renting is costing them money, they will modify the rules and rental restrictions, 20 per year could become 5. They changed the associate rules a few years ago to stop a rental broker from renting.

Bill