Check out the FAQs on our DVC Rent/Trade board for lots of information on how the process works.
In short, you are renting a reservation from a DVC member. You don't need to be a member yourself. You can either work directly with an owner that's offering points on the Rent/Trade board, or use a broker like Dvc By Request.
Once payment, terms, etc are agreed upon, the owner makes a reservation in your name. Payment terms vary, as this is a private transaction between you and the owner (or the broker).
Important differences between renting points and booking through Disney:
1. As mentioned above, this is a private transaction. If anything goes wrong, Disney will not get involved or help you in any way.
2. Assume that you will get none of your money back if you need to cancel. For the great majority of owners, this is a final transaction.
3. Daily housekeeping is not included. The room will be freshly cleaned when you arrive, of course, but you only get limited services after that. If you want additional cleanings, towels, toiletries, etc, you'll need to arrange for that when you arrive at the resort, and pay for the additional services.
4. Since you're not booking a cash reservation through Disney, you won't be eligible for
free dining, or any other promotion that they offer.
5. All contact with DVC must be made by the member. You won't be able to make any changes to the reservation yourself, make requests, add the dining plan. The member must do that for you.
6. Don't assume you can change your dates, change resorts, etc, once the reservation is made. The villas book up quickly, much more quickly than cash reservation.
7. Be prepared to start working with an owner/broker at least 11 months in advance of your stay. If you want to book anytime between Thanksgiving and New Years, you'll probably want to connect with an owner about a year out. The same is true if you want BCV or BWV during the Food and Wine Festival.
The rental only includes your lodging - you must pay for food and tickets yourself. The Dining Plan, if you want it, must be added in advance of your arrival by the member, and it must be paid for in full at the time it's added to the reservation.