Re: Renting and the chances you take and incur ....

[Ken the Retired Cop]

This topic was just touched on a few posts back, however I really am nervous about renting and then the member 'cancelling' the reservation. What happens to the money? I know there have been no problems incurred on the boards here and that at least sets my mind at ease, other than the fact that some posters have very few posts offering posts and the ones who have many posts seem to have the higher prices.

I'm looking to rent our points at $7 per point (need 284 for OKW in Sep 2002) and I feel that is fair price for the resort and the time frame, however I again am nervous about paying all the money up front and then having the potential danger of a member cancelling the reservation. What does Disney do in the case? I know the reservation would be made in our name - do they inquire as to whether the 2nd party will be getting refunded? If a "bad" situation did happen - would Disney compensate at all? (i.e., if a 'member' is intentionally doing something wrong as in stealing someone's money that is and let's hope that has NEVER happened - but I'm just wondering).

Any helpful information you can provide would be great. Thanks.

 

[fkj2]

I've not ever used them and you can post this query to Doc, but I think there are escrow accounts that can be used. I'm not sure about how much extra this will cost you.

You have to remember that the DVC owner is taking risk also. Unless there is something in writing, what's to prevent the rentee to cancel at the last minute, expecting a refund and the owner unable to rerent those points? There are time constraints on us too.

 

[Gary K. D.]

Ken....been a cop too long? You are correct in that the risk is totally borne by the person renting the points from the member. Disney is in no way part of the transaction other than supplying the product. Like buying a Rolex watch from an individual and then expecting Rolex to reimburse you if the watch is not authentic....not going to happen!!!!! The member has total control over his own account and can make or cancel a reservation at will whether or not his party has paid for the reservation. As had been said many times many ways (sound farmiliar?) there has been no report of a member screwing a renter in the 5 years that I have been reading posts. Some members have more experience in dealing with the rules and have more flexibility if reservations must be changed but no member has failed to deliver, regardless of the price paid, on the promised reservation. I think the only potential problem would be if the person who is renting the points wanted to change the reservation to a different Resort or date or had to cancel. I, myself, do not offer full refunds in that case. I will work to reschedule at a reasonable time in the future (7months max) or repurchase the points at $5.00 ( just like the insurance) ...Good Luck

 

[RobDoc]

It looks like fkj2 and Gary have answered the question. To reiterate, Disney is not part of these transactions in any way, except to provide the room for whomever the member wishes.

There has never been a report of a cancelled reservation here, but the transaction is completely between consenting parties. Some have reportedly used an escrow company (such as <a href="http://www.escrow.com">www.escrow.com</a>) to handle the funds until the reservation date. Others have used credit cards for payment. All of these aspects are negotiable between the parties involved.

Also remember that most members are renting points that they won't be able to use themselves. Many won't make that realization until a few months before the points expire and then try to rent the points. Others know that they will be unable to use points a year or more in advance and can offer points further in advance. Often the rate asked may be higher the further ahead the reservation is made and the short time offers may accpet a lower rate since their points will expire shortly.

There are many issues which can affect the "going" rate for DVC member rentals.

Since this board is not really a discussion forum, I'll move this thread to the DVC Board for further comment.

Good Luck!

 

[PamOKW]

Ken,

The risks are on both sides and I think that's why some people use the escrow accounts. Disney is completely out of the equation. In fact, Disney specifically tries to discourage members about renting out points for cash. This transaction is like renting someone's summer home. All the terms need to be taken care of upfront.

I think it's highly unlikely that someone would cancel a reservation on a purchaser. Not to say it couldn't happen but I wouldn't be that concerned about it.

 

[Pluto4President]

One last note, rent from someone with a little background. Not just a handfull of posts. Ask the rentor for a reference or two that you can verify with if you'd like.

 

[EROS]

KEN, sometimes it pays to be paranoid..........as long as you don't feel that lasers from another galaxy are bombarding your brain . I have been told, without substantiation, that the DVC owner can be held accountable for any damages to a villa which is rented. I would think that DVC in such an instance would go after the GUEST rather than the DVC member. Does anyone here know definitively????

 

[PamOKW]

I'm not sure which is the Guest and which is the DVC renter in your question Eros but I'll try to answer anyway. It's possible that DVC wouldn't even know who is in a villa. They would know whose points were used. I think it stands to reason that they would hold the DVC member accountable for any damages. They don't care who "paid", in DVC's mind the member is using the resort.

 

[TDC Nala]

On this subject, how do you go about independently corroborating the existence of the reservation if you are a renter? I have a printed confirmation that has the DVC member services contact number and a reservation number. Is it permitted for the renter to call this number and ask about the reservation? I am not going to worry about it concerning my deposit but I would like to check the reservation again before I pay the balance in March.

 

[Ken the Retired Cop]

It all has to boil down to trust between the two parties. You can call members services and they can verify the ressie and the dates, however, I was told that that was "all" they can tell you. In other words, if the ressie is cancelled, they "cannot" tell you that. (That doesn't make sense to me).

We've been lucky enough to meet AndreaT through these boards, and my daughter has spoken to her twice and they have both found mutual trust with each other and I've felt very comfortable with Andrea via Emails and hearing her and my daughter speak so I'm confident we're on our way to enjoying a fabulous resort in just a few short months from now.

On another note - the "escrow" company mentioned before does NOT deal with these transactions and I'm not too happy to have found that out, but such is life. We have placed our trust in Andrea and she has taken the responsibility to find a timeshare contract from a site on the computer and we'll both feel set at ease with a contract and the mutual trust between the parties involved.

 

[msdis]

Ken

Are you a member? If you are, can't the points be transferred to your account? How about a notorized contract from the rentor. It would at least stand up in small claims court. Anyone done that? Otherwise, I agree with the others, rent from someone here who's posts represent good moral and ethical attributes.

 

[Ken the Retired Cop]

No, we are not members yet... maybe someday.

 

[Dean]

DVC will not get involved, period. It is a risk from both sides and that is the price for the savings and benefits you are seeking. If the risk is uncomfortable, rent from Disney directly. I doubt that most members would fool with an escrow, I know I wouldn't. Too much hassle and I've always had more people wanting to rent points than I've had points to rent. As for $7 per point, I would be surprised if you could get anything at that price other than points that are distressed and available only short notice.

If the deal went south, your only recourse would be the integrity of the renter and civil court. I know I've had one person that rented and then called the day of arrival (after 4 pm) to cancel. They knew up front it was non refundable and were out that money. Since it was so late, nothing could be done even for rescheduling.

 

[Regina]

Holy Smokes Dean!! They canceled after 4:00pm on their arrival day??? That would have given me a minor cardiac moment.

It's good that they didn't pursue a refund. It sounds as if you covered all the bases with your agreement.

Personally, I'm too stingy to rent out my points.

 

[Dean]

I did feel bad for them. Since I own 2 DVC contracts (502 points) and 6 other timeshare weeks, I sometimes have more than I can use.