MS Email on policy - just came out

[Plutofan]

From the just released Disney newsletter:

Policies protect personal use and enjoyment
In a continuing effort to maximize Members' personal enjoyment of their Membership, Disney Vacation Club would like to remind Members about several related policies outlined in the Public Offering Statement and other Member documents.

As a reminder, published policies limit the use of accommodations and recreational facilities solely to the personal use and enjoyment of Owners, their lessees, Guests, exchangers and invitees and for recreational uses by corporations and other entities owning Ownership Interests in a Unit.

To maximize the availability of reservations for these permitted purposes, Disney Vacation Club closely monitors reservations and may cancel reserved accommodations if a pattern of rental activity for profit is discovered.

Additionally, current policies limit Vacation Point-transfer transactions to one transfer per Member or Membership, either as transferee or transferor, during a given Use Year.

"We want to ensure that Members have the greatest opportunity to enjoy the magic of Membership," said Leigh Anne Nieman, Director of Business Standards and Regulatory Affairs for Disney Vacation Club. "With that in mind, we're committed to maximizing the availability of Ownership Interests and accommodations for Members' personal enjoyment, and we're committed to enforcing the policies that help us deliver on that commitment."

It has always been the policy of Disney Vacation Club that Membership is designed specifically to provide long-term personal enjoyment, and Members shouldn't purchase their Membership as an appreciable short-term investment.

 

[Rozzie]

well, I guess this elimates wondering how they are feel about the rental market.

Wow. This is big big news....

 

[Johnnie Fedora]

So what make a "pattern"?

 

[dvc at last !]

Hooray !

I am a DVC Member - should we get this e-mail, too ?

 

[Chuck S]

Hooray !

I am a DVC Member - should we get this e-mail, too ?

It depends...it is part of the electronic/email version of Vacation Magic...if you have registered at the DVC member website to receive it, then you should get a copy, assuming you've been signed up long enough for your address to be in the system for this "mailing" cycle.

 

[Oreo Cookie]

Personally, I am very happy that Disney is enforcing their policy regarding the DVC. I've only been a member for a short time, since 2001, and have never had a problem using my points. The flexibility of banking/borrowing makes vacation planning easier.

You can tell that there are professional renters in DVC and from these boards it is easy to figure out who they are (how many people need to call MS several times a day, every day?). So, this policy will affect them, and I do think they are in the minority. The professional renter was in violation of the contract they signed. If they end up with devalued points, they created the situation.

 

[drusba]

"Pattern" is a word used in the official documents, is undefined, and DVC will not attempt to define it. Basically, the official documents allow you to rent to another (note the newsletter concedes you can have a "lessee" meaning one to whom you rent) but not to engage in a "pattern" of rental activity. The sense of it is that they can go after those who simply buy points to rent them but the owner who uses the resort himself but has some points he rents out once in a while (because he can't use them or to help defray dues) is safe. There is also a legal issue that effects the resorts. Under Florida law, one who is in the business of renting resort units is required to charge renters for and pay to the government entities the usual rental (sales) tax -- the 12% tax a regular guest at WDW pays to Disney when he rents through Disney. One who just owns and uses a resort home or timeshare and then just rents it out once in a while when they are not using it is not considered to be in the business of renting resort property. Part of the reason DVC has the pattern rule is to assure government authorities don't try to come after it for the tax if one of the owners is out there doing nothing but renting units while failing to collect and pay the tax.

 

[TammyAlphabet]

My opinion is that if people buy points to rent them out then that is their business. As long as they don't participate in predatory practices, like reserving all the studios at the VWL for the month of December to rent out, and cutting everyone else out, then I say they bought the points and should do as they wish. However, it seems that DVC doesn't agree. I know (from these boards) several people who are good folks that rent points on a regular basis and I hate to see them get hurt by this policy.

 

[simzac]

My opinion is that if people buy points to rent them out then that is their business. As long as they don't participate in predatory practices, like reserving all the studios at the VWL for the month of December to rent out, and cutting everyone else out, then I say they bought the points and should do as they wish. However, it seems that DVC doesn't agree. I know (from these boards) several people who are good folks that rent points on a regular basis and I hate to see them get hurt by this policy.

I don't think it's only DVC who doesn't agree with you, but the US government as well. Are these professional renters paying sales tax on their reservations, how about property taxes, I don't think so. If they want to go into the hotel business, do it the proper way, not cheating a system that was set up years ago to make things fair for everyone. JMO

 

[Plutofan]

To maximize the availability of reservations for these permitted purposes, Disney Vacation Club closely monitors reservations and may cancel reserved accommodations if a pattern of rental activity for profit is discovered.

I wonder if we are reading to much into this statement? I wonder if they are mostly taking about people who block out rooms under their own name to rent them off down the road. I can see them possible canceling out those reservations. It will be interesting to get a clarification down the road. Only time will tell. Until we get a decent value for our points outside of the DVC resorts I would hate to see renting being limited. We rented out points because all 10+ people will be going on a cruise in 2007 so we do not need the points. If we just got a good value for cruises and interval international then that would definitly cut down on the problem. I consider DVC to one of the premier timeshares and I hate to hear the comments that other timeshares get a better deal on exchanges than DVC.

 

[Sammie]

I don't think it's only DVC who doesn't agree with you, but the US government as well. Are these professional renters paying sales tax on their reservations, how about property taxes, I don't think so. If they want to go into the hotel business, do it the proper way, not cheating a system that was set up years ago to make things fair for everyone. JMO

And Income tax also.