Rental agreement for owners looking to rent their points.

[Marv_barr]

This will be my first time as a DVC owner renting out points. I was wondering if anyone could point me in the direction where I might be able to find a suitable Rental Agreement that I could use? Furthermore if anyone has any other information or tips that could be helpful to me through this process it would be greatly appreciated.

Thanks

 

[Sandisw]

I don’t have a contract to share...others can help with that...but make sure that you include information for what happens if resorts are closed and the renter can’t check in for any reason.

This situation has shown that was missing from some brokers contracts and has caused issues,

 

[cm8]

This will be my first time as a DVC owner renting out points. I was wondering if anyone could point me in the direction where I might be able to find a suitable Rental Agreement that I could use? Furthermore if anyone has any other information or tips that could be helpful to me through this process it would be greatly appreciated.

Thanks

Hello and welcome aboard! I have 3 different contracts I use when renting out my DVC points. Can you please share a bit more about what information or tips you are looking for?

*Make sure to spell out every detail in your contract. I also have ( first timers ) Initial each block acknowledging they understand what it entails.

* Make sure if you accept checks, it’s placed on a hold until cleared from your bank.

* Do not under any circumstances accept a check for a check-in while the check is able to be stopped for payment. ( Stays in the next 30 days or weeks away)

*Make clear who is responsible for damages and how they need to be handled. Also put a date range on when it needs to be paid by.

*Make sure you spell out that the rental is for the use of points booked as accommodations only**
at XYZ resorts and through such and such date.

* Extenuating circumstances clauses have always been mandatory for me. Make sure you spell out in detail what will occur if you and or the renter is unable to fulfill their side of the contract.
This part is the most important... You need to make sure that all parties agree on what happens next if the resorts are closed due to COVID 19. *****Make sure its signed by both you and the renter.

* Don’t forget to include the name and date of the resort, point amount, purchase amount, and the names of everyone listed in the reservation.

*Payment methods you would like to receive.

* If you’re willing to accept payment arrangements and the schedule on when it’s due

*What happens if the payment is returned

*What happens if your renter needs to be rescheduled

* Your responsibility for ensuring that you maintain your renters accommodations

*keeping your renters informed of any email and or changes from DVC

* I always check in with my renters to see how things are going, and if I may be of any assistance.

* Make sure your renters can contact you at all times. (I give my home, cell, email, ect)

* Make sure you can contact your renters at all times.

*Also, if any changes are made to your original contract, make sure to make an amendment via an addendum to be added to the original contract. Make sure it is signed by both parties!

* When accepting payments, make sure to give a receipt to your renters.

* Keep a file for your renter with all your documentations for that rental.

Trust.......It’s required by both parties....


Good Luck!


Edited to add..... I saw on a thread somewhere that our renters would no longer receive free parking.... If that is in fact true, please advise your guest the fee for parking and how it needs to be handled.

 

[Marv_barr]

Hello and welcome aboard! I have 3 different contracts I use when renting out my DVC points. Can you please share a bit more about what information or tips you are looking for?

*Make sure to spell out every detail in your contract. I also have ( first timers ) Initial each block acknowledging they understand what it entails.

* Make sure if you accept checks, it’s placed on a hold until cleared from your bank.

* Do not under any circumstances accept a check for a check-in while the check is able to be stopped for payment. ( Stays in the next 30 days or weeks away)

*Make clear who is responsible for damages and how they need to be handled. Also put a date range on when it needs to be paid by.

*Make sure you spell out that the rental is for the use of points booked as accommodations only**
at XYZ resorts and through such and such date.

* Extenuating circumstances clauses have always been mandatory for me. Make sure you spell out in detail what will occur if you and or the renter is unable to fulfill their side of the contract.
This part is the most important... You need to make sure that all parties agree on what happens next if the resorts are closed due to COVID 19. *****Maker sure its signed by both you and the renter.

* Don’t forget to include the name and date of the resort, point amount, purchase amount, and the names of everyone listed in the reservation.

*Payment methods you would like to receive.

* If you’re willing to accept payment arrangements and the schedule on when it’s due

*What happens if the payment is returned

*What happens if your renter needs to be rescheduled

* Your responsibility for ensuring that you maintain your renters accommodations

*keeping your renters informed of any email and or changes from DVC

* I always check in with my renters to see how things are going, and if I may be of any assistance.

* Make sure your renters can contact you at all times. (I give my home, cell, email, ect)

* Make sure you can contact your renters at all times.

*Also, if any changes are made to your original contract, make sure to make an amendment via and addendum to be added to the original contract. Make sure it is signed by both parties!

* When accepting payments, make sure to give a receipt to your renters.

* Keep a file for your renter with all your documentations for that rental.

Trust.......It’s required by both parties....


Good Luck!


Edited to add..... I saw on a thread somewhere that our renters would no longer receive free parking.... If that is in fact true, please advise your guest the fee for parking and how it needs to be handled.

I really appreciate the feedback. The information you provided is a big help.

Thanks again

 

[Marionnette]

https://www.disboards.com/threads/effective-dvc-point-rental-agreements.895654/page-14
Post #268 has a sample agreement attached. You would probably want to modify to spell out force majeure terms and conditions.

 

[Marv_barr]

Amazing! This is a big help.

Thanks

 

[LAX]

I am going to try to tag along on this thread before starting a new one as I contemplate renting out some points on my own.

For the seasoned owners who have rented their points before, what are the pros and cons of accepting Paypal vs. person checks? TIA.

LAX

 

[suebeelin]

Here is an old thread with sample contracts but you get the picture. Make sure you write in whether the monies are refundable, when and how, and be VERY conscious about when your points expire, when you must bank, whether the points are banked or borrowed, etc.

For example, I had a renter who was supposed to go to Disney in May. She cancelled due to the pandemic. She asked that I change the date of her trips twice, from October to January.

In July, I asked her whether she wanted to cancel altogether and re-rent the points at a small loss to mitigate her damages. I was very specific in my rental agreement that these points expire at the end of January in the contract (these were 2019 banked points), and these points are "hers" until they expire.

The renter agreed to rerented these points (at a loss of about $3pp). She said she would rather have a small loss than risk her parents getting sick (elderly and was supposed to go with her). I therefore rerented these points. I made sure to state that these points are NON REFUNDABLE and expire January 31, 2021, which is the risk they are taking for the discounted points.

Good luck!!
https://www.disboards.com/threads/effective-dvc-point-rental-agreements.895654/

 

[Sandisw]

Here is an old thread with sample contracts but you get the picture. Make sure you write in whether the monies are refundable, when and how, and be VERY conscious about when your points expire, when you must bank, whether the points are banked or borrowed, etc.

For example, I re-rented some points on behalf of my renter. Her trip was in May and she cancelled due to the pandemic. She asked that I change the date of her trips twice, from October to January. I was very specific in my rental agreement that these points expire at the end of January in the contract (these were 2019 banked points), and these points are "hers" until they expire. I also wrote in the contract that I would mitigate any damages (re-renting) if she needed to cancel. Bc of the pandemic, she did cancel, and I have rerented these points (at a loss of about $3pp but she agreed to this loss). When I rerented these points, I made sure to state that these points are NON REFUNDABLE and expire January 31, 2021. I have a Feb use year.

Good luck!!
https://www.disboards.com/threads/effective-dvc-point-rental-agreements.895654/

Just want to add I think it’s important to also include what would happen if the resorts shut down since none of us ever imagined that would happen like it did this year!

 

[suebeelin]

Just want to add I think it’s important to also include what would happen if the resorts shut down since none of us ever imagined that would happen like it did this year!

Yes, I told all renters who re-rented the old renters points that the monies are non refundable, the risk they take for the discounted points. The re-rented points are broken into three trips, one just finished (yay!), the other is in a week, and the last re-rented point trip is in November. Just hoping everything goes smoothly for everyone involved!

 

[Disneypapa]

I have rented unused points at various times over the years using the rent/trade board on DIS and have not had any problems. I use a contract and ask for full non refundable payment up front. I do offer to reschedule if something comes up, but have not yet had to do that. Once paid for the points are the renter's no refunds.

 

[Kaufeegurl]

May I ask how everybody accepts payment?

 

[Lost boy]

I have extra points left over from our every other year stays and have never rented but always have done a member to member transfer, been doing it that way for over ten years. The points show up in their account and can see it immediately. Seems there's always members in need extra points and I've always used paypal. The points become theirs and they manage their stays, of course you lose control of them with no recourse, we might just be lucky but it's always worked out perfectly.

 

[Sandisw]

May I ask how everybody accepts payment?

I have always used Paypal...but honestly, have only transferred a few times and rented a few times on my own. Most of the transactions were with the same person from DIS.

My last rental was with a broker and won’t do that again. For transfers, I require full payment. For my rentals, full payment after making the trip, within 24 hours, because I did not need to borrow points.

I also made sure that if there was a Paypal fee, it was to Be paid by renter, One time there was...the rest there was not.

 

[cm8]

I am going to try to tag along on this thread before starting a new one as I contemplate renting out some points on my own.

For the seasoned owners who have rented their points before, what are the pros and cons of accepting Paypal vs. person checks? TIA.

LAX

I have not had the experience of using Paypal. I would not feel comfortable with that as an option as it would allow the renter to possibly due a chargeback. Personal checks can be canceled but I have a poli

I am going to try to tag along on this thread before starting a new one as I contemplate renting out some points on my own.

For the seasoned owners who have rented their points before, what are the pros and cons of accepting Paypal vs. person checks? TIA.

LAX

Ive never used Paypal just because some people are unscrupulous and could file a chargeback to your PP account even after receiving services. I have accepted a few checks and I made sure to give it enough time to clear the bank and not be stopped for payment. For instance, I would not accept any form or payment like paypal or checks if check in falls within 30 days.

I’ve had great success using Pop Money and Zelle. If you do use paypal or checks, make sure that the payment is in fact legit and make sure to give yourself a nice cushion for either transaction to clear.

Good Luck!

 

[cm8]

May I ask how everybody accepts payment?

I use pop money and or Zelle! It’s super easy and it’s a transaction that can be traced.

 

[LAX]

I have not had the experience of using Paypal. I would not feel comfortable with that as an option as it would allow the renter to possibly due a chargeback. Personal checks can be canceled but I have a poli

Ive never used Paypal just because some people are unscrupulous and could file a chargeback to your PP account even after receiving services. I have accepted a few checks and I made sure to give it enough time to clear the bank and not be stopped for payment. For instance, I would not accept any form or payment like paypal or checks if check in falls within 30 days.

I’ve had great success using Pop Money and Zelle. If you do use paypal or checks, make sure that the payment is in fact legit and make sure to give yourself a nice cushion for either transaction to clear.

Good Luck!

Thanks for your advice. Once a person check is cleared, it cannot be reversed without a bank investigation, correct? The chargeback option with Paypal I have read about does make me hesitate to accept it as a payment method.

LAX

 

[suebeelin]

I have not had the experience of using Paypal. I would not feel comfortable with that as an option as it would allow the renter to possibly due a chargeback. Personal checks can be canceled but I have a poli

Ive never used Paypal just because some people are unscrupulous and could file a chargeback to your PP account even after receiving services. I have accepted a few checks and I made sure to give it enough time to clear the bank and not be stopped for payment. For instance, I would not accept any form or payment like paypal or checks if check in falls within 30 days.

I’ve had great success using Pop Money and Zelle. If you do use paypal or checks, make sure that the payment is in fact legit and make sure to give yourself a nice cushion for either transaction to clear.

Good Luck!

Curious... how does a person do a charge back via PayPal??? I’m a little upset that a renter can do that!

 

[LAX]

Curious... how does a person do a charge back via PayPal??? I’m a little upset that a renter can do that!

I don't know the details, but it's supposed to be some consumer protection policy in the event of a scam. I have read such policy shouldn't apply to timeshare rentals, but I am trying to avoid finding it out the hard way myself!

LAX

 

[Sammie]

The only advantage of using Paypal is convenience as they are useless if there is a problem. Per their POS they don't allow payment for rentals.