Rental Rates/Concerns

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Actually the reference to commercial renting is included once with no definition, hardly an enforceable issue. The other references are more of a warning that a DVC owner is at a disadvantage competing with Disney. OTOH, there are multiple references stating specifically that renting is OK.

Dean, While I agree w/ most of what you said I kinda disagree w/ this statement.
Building on the "what you can do under the rules" notion, IF it (i can't find my offering statement at the moment) says for personal use and not commercial than, even though a clear definition of what is "commercial" is not defined the intent is what holds.
Granted the term commercial could cover a broad spectrum of things. But the intent, created by DVD is for, personal use only.


The whole notion that renters are "second class to owners" is dumb. People are people good and bad. I have rented my points before and the people whom I have rented were very nice. No problems.

Joe in CT
 
Dean,
Could you expand on that a litttle more?
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Hope you had a nice trip.
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Originally posted by jcodespoti
Dean, While I agree w/ most of what you said I kinda disagree w/ this statement.
Building on the "what you can do under the rules" notion, IF it (i can't find my offering statement at the moment) says for personal use and not commercial than, even though a clear definition of what is "commercial" is not defined the intent is what holds.
Granted the term commercial could cover a broad spectrum of things. But the intent, created by DVD is for, personal use only.


The whole notion that renters are "second class to owners" is dumb. People are people good and bad. I have rented my points before and the people whom I have rented were very nice. No problems.

Joe in CT
Joe, I realize that some of this is not clear in the POS. There are several levels of issues here. First is what was the intent. Second is what is the actual interpretation of the written word even if different than the intent. Third is what are the legal ramifications. I have taken the side that the law will side with the owner if the issues are not clearly spelled out and I believe that is the correct one.

The wording is "intended for the personal use", this is not a requirement as stated and even then they give a definition of personal use that includes lessee's as someone posted earlier. I'd say this is clearly defining the issue of "private" rentals the same as personal use.

As I've stated before, one cannot make a rule that says one owner, Disney, can rent a property and another owner cannot. Just as a condo management company can't rent and tell the owners they cannot. The rules must apply equally to everyone. One can put hoops for all to jump through that might be harder for a member than Disney to jump through but they haven't done that.

The obvious intent by Disney was to make sure the buyer understood there was no stated or implied ability to rent or sell at a profit, basically it might be difficult to find buyers/renters and get a price that was reasonable. Not that they couldn't try, just that the member would be competing with Disney and that would put them at a disadvantage. In the timeshare world the sales pitch of sell or rent for big bucks is a common one and I'm certain DVD was trying to avoid this implication, not prevent members from trying to rent or sell.

As to my assertion that no definition would make policing "commercial renting" based on the fact there is no definition included, we can disagree. Of course if something gets in the courts you never know what will happen and Disney is indeed the 600# Gorilla. But in general I think most legal minds would agree that it would be VERY difficult to enforce in this situation based on the "commercial renting" issue without a definition of same. There are other avenues that Disney could take for something they truly wanted to go after like copyright infringement and similar issues that could have the same affect but I think we're more discussing the intent, direct legal interpretations and actual implementation of the various rules pertaining to the issues in thise thread and not the fact Disney could throw their weight around if they wanted to.

I feel that many approach this issue with their heart and not an objective view. Basically they want things to be a certain way and can't see it any other way. It's not really any different than many people approach the Right to Life/Choose issue, they're not even using the same language or at least mean the same thing when they use they same words. Many are basically saying it feels wrong although even that I would somewhat disagree with. Personally I'd rather members not be able to reserve high times ahead of time to rent out, I'd rather have a rebalancing than weekends sit empty, rather have a minimum stay of 3 days or more and include the whole weekend if you do any of it, Have a charge to bank/borrow/change/cancel. But that's just me and this is not the current rules and I realize it would hurt some members, frankly including myself as we never go weekends but I personally see it as the better choice for the long range benefit of the entire membership.
 
Originally posted by CaptainMidnight
Dean,
Could you expand on that a litttle more?

Hope you had a nice trip.
Sure but I'll never get to bed and I'll be grumpy tomorrow. We had a great time, no kids but I need a vacation. Sure wish we could have gone on the Wonder instead. Hopefully next spring break, I'm already looking at the prices.
 

Dean,

I guess in the whole scheme of things no system will be perfect. I just feel that the intent is what will hold and not the specific wording (must be the surveyor in me).
As I've stated before, one cannot make a rule that says one owner, Disney, can rent a property and another owner cannot. Just as a condo management company can't rent and tell the owners they cannot. The rules must apply equally to everyone. One can put hoops for all to jump through that might be harder for a member than Disney to jump through but they haven't done that.
Maybe, but unlike other condo owners we don't have title that runs forever; DVD does its their building not mine. I own ".02 of unit 38" until 2042 after that I give it back (thats why i find the title insurance a little amusing). So in a sense we don't "own" anything.


Anyway I am glad to hear you had a good trip.

Joe in CT
 
Wow, what a thread - miss a weekend and you can really get behind! I guess I don't see the example promised in the original topic thread:
An example of renters hurting us

On the rent trade board here there was a recent question concerning needing a studio for sure and possibly a two bedroom if more people join.

Maybe this depends on who "us" is. If "us" is DVC members I am part of "us" and I don't feel I've been hurt. If "us" is "only DVC members who don't rent points", I am still part of "us" and still do not feel I've been hurt. If "us" is "people who wish they could control the actions of others" , I must admit to being part of that "us" as well - but in this case I can still say I have not been "hurt". Rich, were you not able to make a reservation you wanted when you wanted because of this? It seems, in the course of this thread many people admit to holding multiple reservations while their party-size is being finalized. Are they "hurting" "us"?

Finally,

I really wish there was a way to end renting for profit. I would definitely support a rule only allowing points to be rented for dues.

We ("us") would not be "hurt" if this person had offered to do this for the cost of dues only? Making sure that no profit is made is a balm for "our" hurt?

Now I would be hurt if you told me that renters had a secret MS number to call that was never busy and allowed them to book a week earlier than I. I guess the title should be "An example of someone using their points in a way that may inconvenience someone else wanting to use their points." Oh wait that's just "Another day at Member Services".
 
Very interesting thread. Not a cohesive reply, but thoughts from skimming it:

I don't see renters hurting anyone, as renters have no ability to make reservations. Other members are responsible for whatever "wrongs" are done as far as making multiple reservations.

I don't think that individuals who rent points are significantly more likely to steal items from, or abuse, accommodations than are "owners." Owning a tiny percentage of a timeshare is not the same as full ownership of a rental property and I don't think that DVC owners share the same mindset and pride of ownership as do outright owners of real property.

I think that you can read the public offering statement and other documents different ways, to support various positions regarding the appropriateness of renting. I think it is interesting in any situation when people say that it is obvious that it means one thing and could not mean anything else when others have already indicated that they believe the opposite! Contracts are very generally interpreted "in favor of" the party who did not actually prepare the language, but that does not carry much weight in interpretation if there are statements which specifically address an issue. I also think that the developer does not have to adhere to precisely the same rules as owners -- if Disney sells points to me and to Mr. X, then they can't impose restrictions on one of us and not the other. However, the "rules" for the development company are not the same as the owners because that is such a completely different animal. Any developers for timeshares with which I am familiar have a different set of responsibilities, expenses, choices and so forth. They rent units through the front desk, but I don't know of any that let owners do that!

Problems from multiple reservations are self-limiting. That is, you can only make a certain number of reservations based on the number of points you own. I have made reservations and when the situation changed made a second one, knowing that I would need to cancel one but for a couple of weeks not knowing which. I also would not be happy if we were charged to make changes in reservations, as the flexibility is one of the things I like most about DVC, and my life is not such that I can plan with certainty months in advance. On one hand, there is courtesy to others during popular periods, but on the other, if you paid for the points then you have paid for the right to do with them as you please.
 
Originally posted by jcodespoti
Dean,

I guess in the whole scheme of things no system will be perfect. I just feel that the intent is what will hold and not the specific wording (must be the surveyor in me).
That's what I've been trying to convey. DVD's intent was never to control renting, it was only to protect themselves. The system though not perfect works well and to fix the "problems" some perceive would mean taking away the things many of use like most about the system. Many people simply need to realize that there's a downside to all that flexibility and we must pick our poison and that's true regardless of which side of this arguement anyone is on. I own another points resort where they charge you to bank, borrow, or cancel and as I noted earlier, you can only aggregate 2 years worth of points. While it's still much cheaper than DVC in many ways, it does affect your choices when making reservation, banking and the like. You think twice when only banking 5% of your points when it costs $25 to do so.
 
Looking at the rent/trade board it looks like the standard is STILL 10.00/point. Is anyone having any success renting for more - like 12.00/point? Seems like after all these years and price increases, our rentals should start becoming more valuable at some point. 10.00/point is an absolute steal for disney accomodations in today's world.
 
1) Whoa !
2) Points-are-points.

3) If they have enough points for two ressies, make the ressies.
4) The points have to be used sometime.
5) The owner certainly won't let points go to waste.
6) The owner has the right to use their points anytime/anyway.
7) We all knew this when we bought.
8) It is one of the advantages of DVC.
9) This is a fact of life, and will not change.
10) Let's all just veg-out and enjoy our points.
11) Enjoy our points each in our own way.
 
I just hope all the renters out there are reporting the rental income on their 1040 IRS form.Remember this is income not some found money.

Message provided by your local IRS audit agent.
 
I agree, picking prime holiday weeks and autioning them off for the highest price is harmful to DVC members, and falls withing commerical renting practices, prohibited by the contract.
 
Originally posted by DSNY FN
I put specific limitations on time periods for money to be exchanged and sometimes I rent all 3 and other times I rent only one then return the others ie cancel them. So to answer your question I will rent all 3 if I get renters if not I rent the ones that people want and cancel the ones that I don't get rid of on e bay

As a new owner but former renter I never understood why anyone would buy points on ebay for $20/pt or more when I never had a problem getting them on these boards for $10. I have to figure they don't know about the boards. Or am I missing something?
 
I didn't read every single post but I was told by our DVC salesperson (Judy) that only 5% of DVC properties are rented out by Central Reservations.
 
Expecting those that rent to do so only for "dues" is IMHO unreasonable, while many of the older membership ( like Rich) have paid for their membership a long time ago, many of the newer members have not and still have the "cost" of their purchase to figure in. If their interest charges run to $5-6 a point it is unreasonable to expect them to rent out points they are unable to use at a price that is only half of their real cost. In short it would be unfair to make people rent out points at a loss. I think it's quite easy to argue that $10 per point is "cost" to some people and as it would be impossible to differentiate between individual members "real cost" it would be impossible to police.

Seeing as it would hurt Disney's sales of points (people would be very careful not to buy points they will need in later years but not now) I can't see Disney putting into place any system that limits what members can earn from the points they own.

While I agree with the OP that it is unreasonable for people who rent out to book rooms before the person renting is sure of the numbers ( and even more unreasonable when they block up prime times and auction the booking) there is very little that can be done to stop the practice without seriously disenfranchising the majority of the membership who do behave in a reasonable fashion. Unfortunately there will always be a small minority who take advantage of any situation, but to close this particular loophole would produce an effect that could be worse to the majority of members than the one that currently exists.
 
Originally posted by Chris125
I just hope all the renters out there are reporting the rental income on their 1040 IRS form.Remember this is income not some found money.

Message provided by your local IRS audit agent.


But wouldn't you subtract maintenance and interest first?
 
When they can not even make a reservation. Seems to me that you are placing the blame on the innocent!
 
Originally posted by nuthut
When they can not even make a reservation. Seems to me that you are placing the blame on the innocent!

Isn't that the truth- the blame belongs squarely on the person who reserves a Christmas through New Years reservation and blocks another DVC member from a room while gouging a poor unsuspecting renter of $14.50 per point!:mad:
 
Originally posted by anniet
Isn't that the truth- the blame belongs squarely on the person who reserves a Christmas through New Years reservation and blocks another DVC member from a room while gouging a poor unsuspecting renter of $14.50 per point!:mad:
Good point.
 
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