New ROFR Information

[mickeymit]

Drusba:

Thanks for the info; your comments are very enlightening. Is there that much money to be made in renting out your points?

Thanks again.

 

[Frederic Civish]

Renting is allowed unless you are conducting a commercial enterprise, i.e., meaning essentially that you are in the business of renting. Disney adopted a rule of presumption that if you make more than 20 reservations a year, you are presumed to be violating the rental rule.

Now I am really curious. Has anyone ever run up against the '20 reservations a year' limit? Did Disney notice, or care? How did they contact you? Did they feel you were doing all these reservations for personal use, or for commercial purposes?

My family makes multiple trips per year to Disney World and Disneyland. We own lots of DVC and some of our contracts have up to 6 family members as owners. We are all, also, multi-year annual passholders at both parks. We often stay in Grand Californian whenever possible (marvelous place), or Animal Kingdom or Bay Lake Tower or Polynesian. AND we rent some points out. Essentially when we can't use them for some reason. We haven't bumped up against any 20 reservations rule, probably because we also stay in Pop Century, Art of Animation, Caribbean Beach and French Quarter. But I, myself often make 10 trips a year to Disney and when other family members are scheduling their own vacations, and using DVC points, I could see it would be possible that we might go over the limit.

So, does Disney enforce this rule? Who has experienced it? What happens? What if I have taken vacations, rented some out, and then I reserve more vacations for my family, and Disney decides it is too many. What will they do? Will they cancel my reservations? I'd like to know more, about how it is actually working.

 

[disneynutz]

Good question, while Disney has taken steps to curtail certain commercial activity in the past like adding rental companies as associates, I haven't heard of them going after owners who are listed on reservations for the majority of their bookings. Disney doesn't like competition and you don't take money from the mouse. Renting reservations brings more money to Disney compared to just letting your points expire so IMO they say one thing and do something else.

Bill

 

[supersnoop]

So, does Disney enforce this rule? Who has experienced it? What happens? What if I have taken vacations, rented some out, and then I reserve more vacations for my family, and Disney decides it is too many. What will they do? Will they cancel my reservations? I'd like to know more, about how it is actually working.

Yes, Disney enforces the rule, but the rule is “no commercial use.” The 20-reservation threshold is just a device they use to help identify commercial use. I imagine they’d review the actual activity before pursuing any action based on that metric.

 

[CraigInPA]

I was shocked when I saw the spreadsheet and the amounts being paid, until I realized that someone resurrected a thread that is 9 years old!

 

[Frederic Civish]

Yeah, it was old. I am sorry about that. But I hadn't heard or seen anyone else talking about the limit of 20 Reservations, so I thought it might be best just to resurrect it here. Oh, and I did try to search for the topic elsewhere, but couldn't find it anywhere. If there is somewhere else where they are talking about it, I'd be glad to go over there.

 

[CarolMN]

20 reservations just triggers an "audit". It's not a hard line that, when crossed, means you are in violation of the commercial clause. We first heard of this several years ago, when some "known renters" reported receiving letters asking for more information on their past activities. I do not recall any of them posting details of what followed. However, I believe some contracts were sold as a result.

I doubt anyone who uses points for themselves or gifts reservations to others needs to worry about exceeding 20 per year.

 

[Jason@dvcstore]

Renting reservations brings more money to Disney compared to just letting your points expire so IMO they say one thing and do something else.

Bill

Interesting point you make. I had never thought of it that way.

 

[hlhlaw07]

Yeah, it was old. I am sorry about that. But I hadn't heard or seen anyone else talking about the limit of 20 Reservations, so I thought it might be best just to resurrect it here. Oh, and I did try to search for the topic elsewhere, but couldn't find it anywhere. If there is somewhere else where they are talking about it, I'd be glad to go over there.

There is always the option to create a new thread for a topic no one is currently discussing. Generally better than resurrecting an ancient thread in which the original topic had nothing to do with what you are asking. Probably more likely to get more discussion/thoughts that way. I opened this one thinking it was about ROFR (because of the title of the thread), and your question didn't have anything to do with that.