Points rental agreement

[DVC SUNSHINE]

I have rented points to a non-member and need to know for sure how you all do this. Do you require a deposit before sending the confirmation letter or all of the rental? I have ask the renter to send a deposit first. Is this the right thing to do? Like I said this is new for me and am not real sure what the normal procedure that most of you use.

Thanks for the help,
Wishing I was in the warm sunshine

PS I am on here daily I read more then I post.

 

[tjkraz]

I have rented points to a non-member and need to know for sure how you all do this. Do you require a deposit before sending the confirmation letter or all of the rental? I have ask the renter to send a deposit first. Is this the right thing to do.

That's really a decision that you can make for yourself. Before becoming a member I rented points twice--once I was asked to send money in advance and the other time I was not.

Unless you are borrowing points for the reservation, or it is being made on very short notice, you really don't lose anything by simply calling DVC and reserving a room. But, if the renter agreed to send money prior to the booking, that's perfectly OK, too.

But before you go any further, write up a simple agreement and get the renter to sign it. Outline when monies are due, the services to which the renter is entitled (basically a room and nothing more) and, most importantly, cancellation provisions.

Even if you discuss cancellation verbally, memories have a way of fading at convenient times. The last thing you need is your renter calling 14 days before their check-in date saying they need to cancel and demanding a refund. I'd recommend using a 100% non-refundable policy on the reservation. If the renter should cancel several months before the trip, you could include a provision that entitles him/her to a partial refund if you are able to re-rent the points (less a couple dollars per point for your time and energy.) But don't forget that points go into holding for cancellations less than 31 days. For that reason, I would insist on having all $$$ in hand no later than 60 days before check-in and have a 100% non-cancellation policy after 45 days.

Remember this agreement is to protect YOU and try to prevent headaches down the road. So don't hesitate to include anything you feel is necessary. I've seen people post links to sample rental agreements in the past--you might want to try a Google search and see what it turns up.

Good luck.

 

[DVC SUNSHINE]

Thanks, I have already made the ressie for the renter. I have ask him for a depost before I send him the confirmation letter. Also told him I would not transfer the ressie into his name until the ressie was paid in full. I did tell him that if he had to cancel I would need 45 days notice and that I would refund half of the rental back to him. Does this sound right?

Thanks again for all the help.

 

[tjkraz]

Thanks, I have already made the ressie for the renter. I have ask him for a depost before I send him the confirmation letter. Also told him I would not transfer the ressie into his name until the ressie was paid in full.

That's your call. Since you are the owner of the points, you reserve the right to change the name on the ressie whenever you wish, so functionally it's a moot point.

I did tell him that if he had to cancel I would need 45 days notice and that I would refund half of the rental back to him. Does this sound right?

Be careful about refunds, particularly if you're up against the end of your Use Year. If he cancelled, would you still have enough time to re-rent before the points are lost? As I said in my first post, I would make ANY refund contingent upon your ability to re-rent the points.

Just some suggestions.

 

[DVC SUNSHINE]

I think I will type up some kind of agreement for him to sign. I found one on google that looks ok. Do you rent out points & if so do you have an agreement that I could you as a outline.

Thanks again

 

[bongo59]

this is how we do it...........we agree on a price they send payment in full to our paypal account when it is verified in my account i make the ressie and not until.........i discuss with them that any changes after this may not be able to made unless DVC can accomadate them and there may be other charges levied for this too. I save the email in a folder so if there is ever an issue i can forward the renter who when and what they agreed to prior to making this deal. I dont us e any paper anymore as my lawyer says this is total unnecessary as long as the agree to my terms prior to making the arrangements and they have paid in full. I take no deposits at all..........it is pay all at onc ethen i work on getting what they want. I also ask for 3 possible acceptable renting scenarios and ask for the top 3 resorts they will accept for the price agreed...........it is very simple and i have never had one go wrong yet?????

 

[DVC SUNSHINE]

So Bongo59 what you are saying is our emails are a binding contract. If this is the case I will not worry with sending him a contract. I will just type up everything and email and have him state he agrees with the tems.

I don't know what I would do without all of you here on the boards.

Thanks again.

 

[bongo59]

So Bongo59 what you are saying is our emails are a binding contract. If this is the case I will not worry with sending him a contract. I will just type up everything and email and have him state he agrees with the tems.

I don't know what I would do without all of you here on the boards.

Thanks again.

my lawyer says that if you make them pay upfront and they agree to your terms there is no question a contract has formed. i save all the email correspondence and this acts as the contract because it clearly contains what they agreed to in advance and their replys to the email and their answers fulfill what a contract requires. Just save them in a folder on your computer.........but i would never make any ressies unless they have paid in full..........because you have no leverage and no recourse if they fall through and your points may become distressed. I have never been burn once doing it this way. The risk is all on the renter as it should be.

 

[brunoflipper]

Below are the terms I have used for my renters....



"Vacation Points Usage Contract
NAME (DVC member) certifies that he has and will maintain, in good standing, an ownership interest in the Disney Vacation Club, throughout this contract period, sufficient to carry out the terms of this contract. DVC member desires to make this reservation in the tenant's name and benefit in exchange for payment.
NAME (tenant) certifies desire to purchase (rent) this reservation and has the ability to make full payment.
This contract is entered into, in good faith, between DVC member and tenant for the express purpose of renting reserved lodging as set forth below.

Names in Tenant's Party:
NAMES

Unit Description and Location: (Example)
2 Bedroom Preferred View at Boardwalk Villas, Walt Disney World, Florida.
Room requests made to DVC Member Services:
Non-smoking, Epcot View. DVC member makes no guarantee with regards to availability of room requests.

Duration and Dates: (Example)
11 nights- Arrival: January 9, 2005; Departure through January 20, 2005.

Calculations: (Example)
390 points at $10 /point, for a total payment of $3,900.

Payments / Deposits: (Example)
50% of the payment ($1,950) is due when tenant receives Disney confirmation letter.
Full Balance ($1,950) is due by October 9, 2005 via www.paypal.com, money order, cashier's check or personal check. . DVC member cannot accept credit card payment via www.paypal.com. Any form of payment returned for “insufficient funds” may initiate automatic cancellation of tenant’s reservations and full retention, by DVC member, of any partial payments received up to that date.
If payment is made by personal check, check must be received by October 2, 2005.


Cancellation and Refunds:
Tenant will be held to the same terms as a DVC member (i.e. cancellation on the day of arrival will forfeit the rented points and reservation to Disney... cancellation within the last 30 days will put the points into a holding account where the tenant will have 60 days to attempt to reschedule the reservation or forfeit the points to Disney... cancellation at 31 days or greater from the reservation's original date of arrival, allows the tenant to attempt to reschedule the reservation, pending room availability, with the points, anytime prior to their expiration on Feb. 28th , 2005. Upon signing the rental agreement, the rented points (390) become the tenant’s until they expire the following February 28th, 2005.

Tenant may request, and DVC member will attempt to make any reservation changes as directed by the tenant, within the limitations noted above. Tenant should be aware that this might not be possible because of limited room availability.

DVC member will not make any changes to the reservation without first being directed to do so by the tenant.

Funds received for the purpose of renting the DVC points are non-refundable (this includes partial payments). No attempt will be made by the DVC member to "re-rent" the points to a third party.

Force Majeure:
In the case of a catastrophic event beyond the control of the Disney Vacation Club to fulfill the essentials of this contract, to provide the specified lodging during the specified times, both parties agree to equally share the loss of non-recoverable points.

Tenant acknowledges receipt of confirmed reservations in tenant's name. _______(Tenant’s initials)
Tenant is responsible for all charges to the room associated with this stay. _______(Tenant’s initials)

Tenant agrees to follow the DVC rules and accepts responsibility and liability for the use of DVC property, including no pets. Tenant agrees to indemnify and hold harmless DVC member due to any actions taken by tenant, tenant's named party and/or tenant's guests during the execution of this reservation. ________(Tenant’s initials)

Tenant and DVC Member hereby agree to the terms of this contract.

DVC Member
NAME AND ADDRESS

Tenant
NAME AND ADDRESS

signed:_____________________________________ signed:_________________________________
date:_______________________________________ date:___________________________________"

 

[brunoflipper]

you'll notice, i do not make refunds... no one has balked yet...

 

[DVC SUNSHINE]

Thanks so much for all the help.....You all are the greatest

 

[4mcbjCtr]

Just subscribing

 

[JimC]

Effective DVC Point Rental Agreements is a thread with very good commentary on this topic.

 

[Phil Cirrone]

Hi I have been reading all your emails for advice in renting points. My questions is about transfering points. Being that it is a one time transaction I'm affraid once the person gets my transfer they will not put the money in my paypal account. I would probably feel the same way if I was the buyer.
Phil

 

[JimMIA]

The thread JimC gave you offers a LOT of good information, including a good bit of input from members who rent pretty regularly. When you are looking at renting from an owner's perspective, I don't think there is any better source of information than some of the experienced people here.

I don't rent points, but if I did, I would never use the contract above.

 

[Terri2007]

I have been an avid Dis Board reader, then participator, followed by DVC owner and over the last 6 months have rented points. I have to say that after reading many threads on the subject of renting, one of those posters that I thoroughly enjoy reading is from 'JimMIA'. Jim, your points are clear, well thought out and make alot of sense. I always appreciate your posts.

From JimMIA: The thread JimC gave you offers a LOT of good information, including a good bit of input from members who rent pretty regularly. When you are looking at renting from an owner's perspective, I don't think there is any better source of information than some of the experienced people here.

I don't rent points, but if I did, I would never use the contract above.

Regarding the above quote, what are your objections?

Based on a on-going thread where an owner's rental contract made reference to helping to re-arrange reservations if the renter needed to re-schedule, which apparantly was never done, leading to this ongoing dispute... I changed the terms of my contract to read:

"Cancellation and Refunds:
This rental is non-refundable. There are no conditions under which this agreement may be cancelled.

Reservation Changes:
DVC member will not make any changes to the reservation without first being directed to do so by the Tenant. The availability of the DVC Member to make changes to the reservation cannot be guaranteed, nor can the DVC Member guarantee that any requested changes be available. The only guarantee is the original reservation described in this document under “Resevation”. The DVC Member will always retain control over the reservation and Tenants are unable to communicate directly with DVC Member Services (DVC Policy). Tenant may not sublease to a third party. "

To me this makes it clear to the renter that I may be unable to help them in the time frame they request and that I am basically selling them the ressie 'as is'. It is not that I want to be difficult, but I am not a commercial renter and due to work/life may not be able to afford the time to provide them with changes/rescheduling, etc. It is my hope that this ultimately makes it more clear for the renter. Further, I have been lead to believe that this would make it easier to make a claim on travel insurance, if purchased.

Thoughts everyone?

 

[JimMIA]

I don't rent points, but if I did, I would never use the contract above.

Regarding the above quote, what are your objections?

First of all, thanks for the kind words.

I have three general objections to that contract, and one nit-picky concern.

The first is that it tends to be much too "legalese" for my tastes -- often pompously so. I have very limited faith in rental contracts anyway; I think they are most helpful to the degree that they clarify the expectations and responsibilities of the parties. (I think they are essentially unenforceable because of the cost of enforcement) With that in mind, this contract's legalese makes matters less clear, not more clear...and that's a negative to me. I'd much rather have a straightforward exchange of emails like Bongo59 uses.

(That's a personal preference, and my personal preference may not be the best thing for any individual owner, however.)

Second, I really dislike the cancellation language. To me, it makes a transaction which should be based on the "tenant" having solid plans an exercise in risk sharing. I don't think that's a reasonable risk for an owner to take on; the renter should shoulder their own risk.

In this contract, the renter has little risk, and unlimited rights to jump the owner through all sorts of hoops with cancellations and rebookings. If an owner wants to do that, it's their business, but I certainly would not. Legitimate cancellations are what trip insurance is for.

Third: "Force Majeure"
I'm sorry, but I just don't know whether to laugh, cry, or puke when I see this clause. I'm sure it originally found its way into someone's contract because some unnamed ancient DVC owner wanted to make the contract sound more "legal and official." But really...what does that term mean? Does anyone know? I'm sure there are lawyers here who know, and they probably would disagree lustily on whether a given set of facts constituted force majeure or not. So why put it in your contract?

In case the pretentiousness and pomposity of the phrase itself is not enough, the clause also includes this little beauty: "In the case of a catastrophic event beyond the control of the Disney Vacation Club to fulfill the essentials of this contract..."

Earth to contract writers: Disney Vacation Club is NOT a party to this contract, and therefore has no obligation to fulfill anything! The inclusion of this phrase could probably be considered as misstatement of a material fact during the negotiations, implying that DVC was going to make this thing happen -- when in fact the contract is solely between two individuals, and DVC is not involved in anyone's wildest dreams.

As far as nit-picky reservations about the contract...I don't like the insufficient funds clause. You're going to accept personal checks...but if the check you chose to accept bounces, you get to cancel the reservation and keep all payments made previously? Wow -- that really doesn't conform much with the ultra-liberal cancellation policies in another part of the contract! Seems like a simple "failure to make an NSF check good" clause would be more renter-friendly. (There's always a nit to pick.)