Rental/Transfer Protection

[MissPeach]

Once you reach an agreement to rent/transfer points, can someone walk me through how that is accomplished? How do you make sure that you are paid before you move the points or make the reservation? Sorry to be a dummy...

 

[JimMIA]

Part of your agreement should be a payment plan.

With a transfer, most will require full payment, because transferring is an irreversible transaction. But you're transferring to another owner and they'll understand the need for advance payment.

For a rental, unless you are borrowing the points or otherwise putting yourself in a "distressed points" scenario, there is no risk in waiting a short period for payment. Most use some % of initial payment after the renter receives confirmation, with the balance due well in advance of the ressie. If something falls through, you should be able to just cancel the ressie without penalty. Obviously, use year, banking deadlines, and perhaps 11/7 month windows would be considerations in determining when you needed to have full payment.

ETA: It's not part of your question, but another thing that should be in your agreement is the protocol for what happens if the renter's plans change. The renter needs to clearly understand that this is NOT a hotel ressie and they probably will have very limited options (if any) if their plans change.

 

[MissPeach]

I'm a Peach. Thanks so much for the advice! sorry about the arm...

 

[RobDoc]

For transfers, many have agreed to payment of 1/2 prior to the transfer amd the remainder after completion. this gives both members some confidence in the process.

For rentals, the member should always allow for a payment policy they are comfortable with. Many will ask for a non-refundable deposit in advance and the balance 45 days prior to arrival so they have an opportunity to recapture the points before any penalty. The Use Year and expiration date for the points should also play a role in the payment policy. (If the arrival date is within 31 days, it's practical to expect full payment BEFORE the reservation is even made since a cancellation would involve the Holding Account limistation for the member).