Renter in Default

[MFMont]

Glad to report that the renter has paid and we can both move on with our lives. Much better situation for us both.

 

[AnnaKristoff2013]

Glad to report that the renter has paid and we can both move on with our lives. Much better situation for us both.

Glad to hear of this good outcome.

 

[Sandisw]

Depending on your jurisdiction and it's rules regarding any duties to mitigate damages in a contract breach, and what specific language you put into your contract regarding choice of law and those rules, and what your specific state allows as far as that language, this may not save you either. I recognize that it's "easier" to just say your contract is non-refundable and that's that. However, it's definitely "safer" to try to work with the renter and refund them a reasonable amount after an attempt to mitigate your damages by re-renting.

Or, to put it another way, why wouldn't you attempt to re-rent the points and then refund a reasonable amount, prorated based on what your new rental went for, and after taking some kind of "fee" to account for your time?

Because I rented for less with the understanding it was a one and done? Plus, by not canceling, the renter could still show up that day and the room was there.

It meant they were completely in default. So, there was no way need to mitigate damages since there were none. That is how I will always rent if I choose to do it again. The only difference is I would allow a name change if there was an emergency.

 

[Robbie Cottam]

Depending on your jurisdiction and it's rules regarding any duties to mitigate damages in a contract breach, and what specific language you put into your contract regarding choice of law and those rules, and what your specific state allows as far as that language, this may not save you either. I recognize that it's "easier" to just say your contract is non-refundable and that's that. However, it's definitely "safer" to try to work with the renter and refund them a reasonable amount after an attempt to mitigate your damages by re-renting.

Or, to put it another way, why wouldn't you attempt to re-rent the points and then refund a reasonable amount, prorated based on what your new rental went for, and after taking some kind of "fee" to account for your time?

I understand the concept of unjust in enrichment.
But a good faith argument could be made, that 90 days prior the points are pretty much useless.

Depending on where in the use year the points are they simple may not have a shelf life left.

Even if they do you may be too far into the booking window to use them, depending on the home resort.

At this point “working with the renter” only requires a good faith effort,

The OP is not required to hold the renters hand, chase them around, put in hours to collect the debt…

The argument could be made effectively that renting points is a lot like buying lettuce, at a point in time the lettuce has to be throw away, because it has spoiled, and no longer has any value.

I would argue that with in 6 months of the end of a use year the point are worth 3/4 for their original value and almost nothing within 90 days of the end of the use year..

Their are cost incurred with renting points
Time is money…

It plausible that the OP rents these points to someone else and still losses money…

 

[robinb]

Glad to report that the renter has paid and we can both move on with our lives. Much better situation for us both.

Great news! I hope they have a magical trip.

 

[sndral]

Glad to report that the renter has paid and we can both move on with our lives. Much better situation for us both.

Good news!
Payment was due 12/30 - Sat. - OP started this thread on Sunday, 12/31, when the renters were less than 1 day late, they were ultimately less than a week late.
I personally take deadlines very seriously - likely because missed deadlines had huge consequences in my field, however, as @AnnaKristoff2013 points out, contract law isn’t as simple as “this is the clause I put in my contract.”
I’m curious, do most DVC point rental contracts include a choice of law/venue/jurisdiction clause?

 

[AnnaKristoff2013]

I’m curious, do most DVC point rental contracts include a choice of law/venue/jurisdiction clause?

I’d bet you $2,600 that they don’t…

 

[Robbie Cottam]

I’d bet you $2,600 that they don’t…

MINE DOES

 

[AnnaKristoff2013]

MINE DOES

Actually, I may stand corrected as it does look like at least this suggested template: https://www.disboards.com/threads/rental-agreement-templates.3816271/
does include such a clause.

With that said, I wonder how many people who are renting out their points consult with an attorney to find out what the actual laws of the state they live in and are choosing are. I’m betting the number is quite low.

 

[zavandor]

I was not planning to go to WDW in 2020 so I rented all my points that year, then something unexpected happened to the world. I had 3 reservations rented out and I worked to change/reschedule/re-rent all my points. At the end, I moved or refunded what I could get from the points and I think the maximum people lost was around $100.
I still write in my contract that in case they need to change or cancel I'll do my best to move or change the reservation but nothing is guaranteed. I also clarify the status and expiration of the points so renters know how easy it would be to move dates or re-rent them.

But I ask full payment on confirmation and there is no refund, unless the points are re-rented and refund might be less than what they paid.

 

[mort1331]

Wait,,,What we are supposed to have a contract.....lol...never had....good luck to either side to enforce....its one big trust game

 

[Robbie Cottam]

Wait,,,What we are supposed to have a contract.....lol...never had....good luck to either side to enforce....its one big trust game

Why do you think it would be hard to enforce?

Granted, it would be harder for the renter to travel to Massachusetts if I defaulted. It would not be impossible....

Zoom is a wonderful thing...

Judgements are enforceable in most of the 50 states..... Unfortunately, some states don't always love enforcing out-of-state judgements, but they will... If you ask nicely...

 

[DonMacGregor]

Judgements are enforceable in most of the 50 states..... Unfortunately, some states don't always love enforcing out-of-state judgements, but they will... If you ask nicely...

Judgements are the gift that keeps on giving. Even if it ends up costing you more to win the judgement than the value of the debt, just knowing that it is sitting there as a public record and smelling up their credit reports gives one a perverse sense of satisfaction.

 

[Robbie Cottam]

Judgements are the gift that keeps on giving. Even if it ends up costing you more to win the judgement than the value of the debt, just knowing that it is sitting there as a public record and smelling up their credit reports gives one a perverse sense of satisfaction.

Luckily, I have yet to have a rental contract that exceeds the jurisdiction of my small claims court....

And even more lucky, I have never had an issue that went beyond needing to make a phone call to clarify.... Including COVID changes....

But yes, judgments are consequences, and like any good consequences, they suck...

Enforceable or not, a well-written contract tends to stave off problems simply because most people try to do the right things, and most shady characters would rather move along than deal with the unknown that is contract law.

Oh and the cost to obtain a judgement, is a tax deductions if you are renting points, so not a huge payday, but its something

 

[js]

Good news!
Payment was due 12/30 - Sat. - OP started this thread on Sunday, 12/31, when the renters were less than 1 day late, they were ultimately less than a week late.
I personally take deadlines very seriously - likely because missed deadlines had huge consequences in my field, however, as @AnnaKristoff2013 points out, contract law isn’t as simple as “this is the clause I put in my contract.”
I’m curious, do most DVC point rental contracts include a choice of law/venue/jurisdiction clause?

I'm going to reconfirm my contract, thank you.
I had my Manhattan corporate real estate attorney write one up for me when I rented my DVC and another TS property this past year (well, she is also my daughter LOL).

 

[mort1331]

These are all valid points, but, if your in another country for either the renter or rentee, then is it even worth it?
A whole lot of people went thru this when Daves couldnt fulfil contracts due to shut downs.
I know a few thousand is a lot for most people, but trying to run around and collect from different states, or worse countries.