receiving payment from a renter

[Partridge4ever]

Some friends of ours are interested in renting points for a trip in October. (I know chances of availability aren't great.) I suppose I should've thought of this before offering to rent, but DH and I disagree over when to receive payment. DH thinks we should get payment in full as soon as the ressie is confirmed to avoid the potential awkwardness of having to ask for payment later. I was thinking of getting the first night's payment now and the balance 31 days prior. It seems a little unfair for us to have their money so far in advance. I'd feel more comfortable if I had experiences from DISers to back me up. Those who have rented in the past: what do you usually do?

 

[DebbieB]

I haven't rented, but I would not ask for the balance 31 days, I would make it more like 45 or 60 days. What if they don't give you the payment on day 31? Then you are backed up against the wall, do you cancel or not? Give yourself some room.

Also something to consider - when is your banking deadline? If they should change their minds, do you have enough time to bank?

 

[chris1gill]

I definitely agree more with your Husband on this.... You need to cover yourself in the event your friends decide to cancel, potentially at the last minute... you should let them know they won't get their money back within 31 days of the reservation if you really want to cover yourself...

 

[KLR-wlv]

Hi

I rented points for HH over July 4 and the owner required 25% after confirmation and then the remainder due about 6 weeks prior to the reservation. She made it clear that the reservation could be cancelled with a refund up until that point.

Kristen

 

[Partridge4ever]

Thanks for your replies! Our use year is August, so we'll still have plenty of time to bank our points if they back out. I told them if they cancel less than 30 days in advance, they would be committed to using the points prior to the end of our use year and with restrictions.

Any other thoughts would be appreciated.

 

[fkj2]

I have rented points to others and generally ask for half down about 3 months out and the remainder as someone else posted about 6 weeks out so that their check has time to clear the bank. I also don't feel comfortable with holding someone else's money for a long time period but I do make it clear that they are responsible for the rental if they cancel less than the 31 days prior to arrival. So far, it's worked well.

Just be careful since you're renting to "friends"; nothing is worth ruining a friendship over renting points.

 

[VickiVM]

I just recently rented from an owner that I encountered here on this forum. It was a little daunting, I have to say, because although there is a risk that the owner will be left with used points and no money for it, the person renting the points also puts faith that the owner will secure the ressie and not scam them out of their money. Just something to think about when you set the terms.

Here is what we came up with that we both felt was fair:
Vacation dates 9/29-10/4, Agreement terms set forth 4/20
- $8/per point
- 156 points needed = $1248
- 25% due up front (apprx $300) after ressie is confirmed and mailed (I was satisfied when I was able to call and verify confirmation # since it takes about 2 wks for hard copy of ressie to be sent)
- 50% (apprx $600) due as soon as I received my refund of $618 from WDTC for my existing ASMo ressies. As soon as I was able to verify my BCV ressie, then I cancelled AS.
- 25% (remaining balance, apprx $300) due 60 days before ressie started

Refund agreement:
- 100% refund if cancelled on or before 31 days prior to ressie
- 75% refund if cancelled after the 31 day mark

His points were banked and had to be used by 11/30 and we agreed that if cancellation of our ressie became necessary, we would reschedule so he doesn't lose out on his points. I wanted an out in case something catastrophic ocurred, but would reschedule instead of cancelling altogether.

I'm aware of the repercussions that would occur if cancelled after the 31 day mark, so I take this agreement very seriously. Paying out the villa this way is actually beneficial because probably the most common reason a person has to cancel ressies is because of financial hardship. Once I purchase our passes (later this month), the biggest expenses are out of the way.

Oh, BTW, I signed an email that we had set up with the terms and mailed him a hardcopy along with my $600 money order.

Good luck.

 

[Beth]

One thing to consider.

I respect everyone trying to be considerate to the renter, and not "tie up their money" so far in advance of their trip, but, for many of us, we will be renting our points in order to afford a "non-WDW" trip, or for a WDW cruise (when the "point cost" just isn't justifiable over cash), and we may need that money to secure our <i>own</i> reservation.

I've rented points twice (to non-family/friends) - once as the renter and once as the "rentEE" - and full payment soon after the agreement was signed was not an issue in either case.

Just a thought...

 

[Happy Birthday Cat]

I have only rented a few times but always have received $10.00 per point because they are points with a full use year to them. A lot of flexability makes them more valuable as opposed to someone who needs to move them or lose them.

I have asked for 50% on confirmation and 50% when he/she receives the written confirmation (in most cases) unless it is a small amount rented. I will refund the $ if I can find another renter but not within 31 days of the reservation. I just did this with someone. Also the points become less valuable as you get into the use year so the refund may be for less than the $10.00 paid.

Since these are friends of yours, doing a business deal can be difficult. Good luck.

HBC

 

[ktbugsmom]

As a new "rentee", I just thought I would post my experiences...I currently have vacations planned for August 2002, December 2002 and March 2003 and I rented points for all of them (thanks to my renters!). (I know - I should just buy in - but I need to work on my DH). Anway, I am paid in full for all of the vacations. As soon as the "renter" sent me an e-mail with the confirmation #, I called MS to make sure it was valid, then I sent off a check. We didn't sign any agreements, or agree to any "refunds". I didn't want them hanging in limbo if I decided to cancel my reservation - so basically, we agreed to no cancellations. If something comes up - it will be up to me to find a new renter. I don't feel that the DVC member should be burdened with that if I change my plans... The neat thing is, I have made new "friends" via e-mail and am looking forward to 3 great vacations. Now I just need to talk my husband into joining.

 

[Partridge4ever]

I agree ktbugssom, sounds like you should go ahead and join. My husband was very skeptical in 2000 when we joined. I am sooo glad we did and he admits now to that it was the right decision.

DH and I considered everyone's comments and decided to ask for 50% now and 50% 40 days in advance. In the future, I'm going to discuss payment terms when we first offer to let people use our points. The part that bothers me is that I should've told her the payment terms in the early stages. Now I feel like I'm springing it on her. We want it to be a win-win situation. I never would have offered if she hadn't asked me for help in deciding which resort to stay at, and she had OKW on her list.

I'm supposed to talk to her sometime this week. Maybe she won't pass out when I tell her that if she goes through as planned, she's going to owe me $475 next week. lol

 

[WDWorld]

But...

When You rent point from someone, the owner makes the reservation for you and my question is : from there, who has the "control" over the reservation ?

If I pay 100% to someone and he decides to cancel... what can I do ?

Thanks in advance

 

[fkj2]

The owner has ultimate control.

But, and Doc has mentioned this in several posts, it seems no one who has rented points from anyone here on the board has been scammed.

Some people have had written contracts so that's a possibility for you and many can offer references who have rented points to others before. It is an issue of trust, not only for the person paying for points but for the owner as well.

 

[Jen D]

>If I pay 100% to someone and he decides to cancel... what can I do ?

You are SOL, the renter has no control. But-- it wouldn't be a great scam, really-- when you send off your money, you already have confirmed that the owner is a DVC member, you have the confirmation in hand with their address and phone number. You may have independetly confirmed the info with MS. So if they do bilk you out of your money, you know where to find them. With most scams, the scammer has to have the ability to become anonymous after the theft-- that would be very hard in these circumstances.

My experience was much like ktbugsmom-- paid in full, as soon as I received the DVC confirmation, with no contingencies for cancellation. In our case the points were soon expiring. I think it was understood that if I backed out, it was my responsibility to find a new renter.

I also agree with ktbugsmom that renting is a great way to make friends!

 

[ktbugsmom]

When it comes to renting points, I agree - there has to be a trust factor between two parties that have potentially never met. That can be difficult. As the "rentee", I figured that anyone who was willing to pay $10-12K+ to belong to DVC was not going to scam a person out of a few hundred dollars...I suppose I could be wrong - but I have faith in mankind...

 

[ktbugsmom]

One more thing, back to the main question - if I were the one renting points, I think I would require 100% payment upfront (or 50% at time of reservation and 50% upon receipt of confirmation letter - even if the reservation is 6 months out.) That way, your points are secure - as in paid for, and you don't have to worry about the person renting points backing out and you getting stuck with points that might expire...I as a person renting the points, I feel that that is very fair.

 

[Happy Birthday Cat]

One other point that I always tell people who are renting or going to rent. Read the other person's posts here on the Dis Board. It gives you a really good feel for what a person is like.

Not to make anyone mad, but I have to admit that I wouldn't have rented to someone with no Dis history and I wouldn't rent from someone whose first post is wanting to rent their points. You can learn a lot about someone from these boards.

I have met some wonderful people through renting who are truly "Disney Lovers," just like my family

HBC

 

[KNWVIKING]

PARTRIDGE....

One aspect of your transaction that can make this awkward is your renting to friends. It's easier to demand terms from a stranger and no ones feelings get hurt- it's just business. one of my venders has a sign in his shop that I love: "When it comes to friends & families, if you can't afford to give it to 'em, you dare not sell it to 'em"

 

[Partridge4ever]

That's what I'm finding KNWVIKING. But I'm just a worry wort. I'm not even worrying that she'll pay me; I'm worried that I'll feel uncomfortable asking her for the money in Sept. if she doesn't produce it first. I'm going to worry the whole time she's gone, too, since I'll somehow feel responsible if she doesn't absolutely love the room. It's not logical, it's just how I am.

I think most people renting on the DIS (and probably other places) are honest. I can't imagine an owner cancelling a ressie and keeping the renter's money. That would be so un-Disney. After searching the archives and reading replies to my post, I think the owner takes the bigger risk in not asking for 100% up front. A well meaning renter might not be able to come up with the money or might have to cancel for any number of very legitimate reasons. If I ever rented to a stranger, I'd do everything I could to reassure them that I wan't taking them for a ride.

 

[VickiVM]

First, let me clearly state that I'm soooo grateful for this board because through everyone's experiences and knowledge, I've would have never even entertained the thought of seeking out a home-away-from home resort. I am thrilled that I'm able to take advantage of the fact that someone who is not able to use his points this year is willing to let me rent from him. I constantly push considering renting points over on the Resorts board because I don't think people even consider this option. But (and please, please don't take this the wrong way), not even WDTC requires entire payment for ressie up front. They at least give you to up to 45 days out to payoff a package, and 5 days out to pay off a room only ressie. I'm all for setting up terms, but if I didn't have flexibility to cancel in case of emergency (and I mean a true emergency...not just because I changed my mind) then I wouldn't feel entirely comfortable.

I have seen over and over again on the resorts board how indignant people get when they are forced to pay off their ressie by 45 days out...they don't feel that Disney should have their money for those extra 45 days. And I realize that this is not exactly the same situation. But I guess my point is, if renting out your points were not as easy as it is now with computer access, then what other options are there for DVC'ers who aren't using their year's points?

Please don't flame me. My intent is not to start a debate, but to give you perspective from someone who is renting and happy to do so because of the flexibility my DVC owner is allowing.