Points Rental Questions

[jel0511]

O.K. I've been a DVC member for 3 years and have never rented my points, nor do I intend to. My friend is looking into renting points, and of course I have no points to rent her!! So, since I'm not in the renting game, I'm not sure of all the rules that should/should not be involved. I know the going rate is around $10 per points, and I've already told her that. What should she be looking in terms of a contract. Should she have to pay the entire balance at the time of the reservation, or should only 50% be due at that time? I guess what I'm trying to figure out is what should the terms of the agreement be. She's trying to rent points here on the DIS, but the member who's willing to rent her the points has a low post count, and I've never seen or heard of this person before. If it was one of the "regulars" here I'd have no worries for her, but since it's not a new ID, but a low post count I worry for her. I know that point rentals involve an element of trust, and I've explained that to her, but I would like to be as informed as I can be for her sake! THANKS!!!!

 

[Nick@ VB+OKW]

Lori

Yes there is a lot of trust involved. Here is an example when we rented out 300 pts to pay for our cruise in Feb..........

1 renter wanted all 300 pts(@$10 each= $3000) from us. I told him I wanted $2000 after I made the reservation..........and the balance 60 days before his trip.

After I recieved the 1st payment($2000) I mailed him a hard copy of the DVC reservation with his name on it. We also exchanged e-mail addresses and phone numbers. This person was from Hawaii and was very propmt with everything.

60 days before his trip he will wire me the balance($1000). All of this was done within 2 days after I posted the points for rent on the Rent/Trade boards.

 

[jel0511]

Thanks Nick, I appreciate your response. Too bad your points weren't available!!!

 

[fkj2]

I've rented points under similar terms as Nick, only I asked for one-half upon booking and giving a confirmation number and the other half 45-60 days prior to check-in, so there's time for the check to clear the bank. I photostat the ressie and forward that once I receive it from DVC.

I've had a couple of people talk to me by phone and that seems to be reassuring for them. Also, your friend might ask if the owner has rented any other points and if references are available.

The thing is, is that for an owner to rent out their points, somebody has to be the "first" reference. Although I've not had a formal written agreement, it really is a good idea and certainly I'd recommend it.

 

[KellyDVC]

is that there are as many 'rental agreements', as there are renters. Everyone's is a little bit different. But whether it be differences in the $ per point, payment terms, or cancellation deadlines, trust is a prerequisite throughout.

As a previous renter and rentee, I have done this a few times in the past. My personal terms are as follows:

- I will make the reservation and send the DVC confirmation to the rentee before I ask for my 20% deposit
- the balance is due 45 days prior to guest check-in
- 100% refundable if cancelled before the balance due date.

I usually request >$10 per point.

FYI, for your personal situation, why not ask another member to transfer points to you (paid for by your friend) and then you simply make the reservation.

Thanks for reading.

 

[jel0511]

FYI, for your personal situation, why not ask another member to transfer points to you (paid for by your friend) and then you simply make the reservation.

That's the best idea I heard all day!!! THANKS!!!!

 

[Poorman]

I usually get 35% when I send the renter the original ressie. Then I get the remainder 75 days out. It has worked perfectly for many rentals. There is a lot of trust involved,but I only know of one person on the board that has had a problem.

 

[Dean]

Originally posted by jel0511
That's the best idea I heard all day!!! THANKS!!!!

Most members will require payment prior to the transfer so it may not be that good of an idea. When I rent, I usually ask 25% when they see the confirmation in their name and the rest at 90 days out. If for some reason the points are more at risk, I may be less lax and require more up front. I make it all NON REFUNDABLE though one could rebook subject to the limitations of the points expiration.

 

[stillnotsure]

how do you find out someone's post count?

 

[Nick@ VB+OKW]

Originally posted by stillnotsure
how do you find out someone's post count?

Its the number on the far left under Location, and under your username.

 

[disneyberry]

<font face="times" size="+0">Lori, I have rented out a handful of points in the past and asked for a full payment due ASAP after they confirmed the reservation because their reservations were within 60 days of when we reached an agreement. If I'd rented for a reservation further in the future, I would probably have asked for a 25% deposit when they have confirmed their reservation in their name at the resort, and then the balance due 61 days out. My rentals were non-refundable as well, and I made sure that my renters clearly understood everything they were getting into! Communication is extremely important, and if you can find a renter who will be responsive that would be best.

I've also done transfers in the past, and for those cases, I required full payment <i>before</i> I transferred my points to them. This requires a lot of trust on the rentee's end, but if you find a good member, it works out great as you will have full control over the points that will be transferred into your account.

Getting a written contract can help, but many DISers have noted that the contract will not necessarily hold up in court, but is really more of a way to lay out all the terms and conditions clearly on paper, and have both parties acknowledge that they understand the terms.

Another bit of advice is to either do a search on the DISer and read their past posts to get a feel for them, and/or ask for references. Also, speaking on the telephone with them can often be helpful as well.

Anyway, HTH and good luck!</font>

 

[chirona]

I have never rented out points but I have been the rentee. I find that asking for full payment before the transfer would be to hard for me. So I started looking for other ways to complete the transaction that would prove to be a safeguard for the rentee also. I found a Escrow service that would be that neutral third party. There is a fee for the service about 3% of the cost of the transaction. This way the funds will not be release to the seller until the poings are transfered to rentee account.

Also I found having a detailed contract is a good idea. I see no reason why it shouldn't hold up in court. Maybe someone that knows the law would be able to shed some light on the matter.

The important thing is that BOTH parties feel comfortable with the transaction.

 

[pumpkinboy]

Wow, that's a lot of work (speaking of the escrow and contracts), but it does lend both parties a measure of security, I suppose. I found myself a bit short on points recently, so I needed to rent some; I also wanted the 11 month priority at the resorts in question, so they needed to be resort specific. I one transaction, I simply mailed off a $500 check to the person, telling her we could effect the transfer once she had received it. In the other case, the member gave me her bank account number, and I simply went to a local branch of her bank and made a deposit to her account, then sent her the deposit slip; she checked her account on-line, and a couple of hours after the deposit I had use of the points.

Certainly there is an element of trust involved. In one case the other member had my DVC account number and I had her bank account number (all evidence of which I have since shredded out of consideration). I suppose we can be each others' references in future. But since it worked well, it was a fairly painless process. I posted a "points needed" post on the rent/trade board last Thursday, and by Tuesday, both checks had cleared and I had my ressies.

 

[TnRobin]

I have rented twice. Both times I required 1/2 down when I made the reservation with the remainder due 45 days before the stay. I sent an email reminder 60 days before. Both times my renters were very prompt.

Definitely make sure each party is clear on what happens if the reservation is to be cancelled. With the two rental I have done, I have said that the points are thiers. I do not refund the money, but would be more than glad to re-book the stay for another time or I would try to rent them back out. If I got another renter, I would return thier money. So far no one has needed to cancel.