Renting points

[Chances mom]

I am a current DVC owner. I would like to know if I can rent some of my points without the second person on the contract signature. Forgive me if this was asked and answered before I couldn't find it.

 

[Lynne M]

You don't need to sign anything to rent points, just make a reservation for the person you're renting to.

Now, whether any of the brokers require both owners to indicate agreement, I don't know. But renting on your own, you'd have no problems.

 

[Chances mom]

Thank you for your help! Do I need a broker to rent points I have some friends who want to rent. I just wasn't sure how it worked.

 

[JimMIA]

No, you don't need a broker in that situation. The purpose of using a broker is a) to find a renter, and b) to provide some protection to both parties. You don't need that with friends.

What you do need -- and this is critical -- is for both you and your friends to clearly understand the terms of the rental.

The biggest risk to both of you is that their plans change and they have to cancel. That could create a situation where you lose your points -- so you need to carefully evaluate the rental in terms of dates, cancellation deadlines, and your banking deadline.

 

[Chances mom]

No, you don't need a broker in that situation. The purpose of using a broker is a) to find a renter, and b) to provide some protection to both parties. You don't need that with friends.

What you do need -- and this is critical -- is for both you and your friends to clearly understand the terms of the rental.

The biggest risk to both of you is that their plans change and they have to cancel. Were your points -- so you need to carefully evaluate the rental in terms of dates, cancellation deadlines, and your banking deadline.

Thank you so much! I look at the terms and conditions. I will draw up an agreement just to be on the safe side. I appreciate all your help.

 

[_auroraborealis_]

Even with friends, if you are renting the points, your DVC contract (between you+DVC) requires that you have a contract. So even with friends, create a written agreement.

 

[Chances mom]

Even with friends, if you are renting the points, your DVC contract (between you+DVC) requires that you have a contract. So even with friends, create a written agreement.

I will do that. Thank you! I want to be safe.

 

[Sammie]

I will do that. Thank you! I want to be safe.

Just be aware a contract will not keep anyone safe. It just makes sure everyone is in agreement with the rental.

Very rarely are there any problems with rentals but as the member you are responsible for the unit that your guest occupies and any money owed if they bail out on payment of room charges.

 

[Chances mom]

Just be aware a contract will not keep anyone safe. It just makes sure everyone is in agreement with the rental.

Very rarely are there any problems with rentals but as the member you are responsible for the unit that your guest occupies and any money owed if they bail out on payment of room charges.

I never thought of the room charges. Thank you!

 

[Chances mom]

Obviously you can tell by my initial post and my response is that this is all new to me. I have always been able to use the vacation club and not needed to look at this option. Now it's something that I do need to look at. I love the boards and knew I would be able to find the answers I need. You guys are great!

 

[Disneypapa]

I have had a membership since 2002 and have rented points without using a broker about ten times, always requiring a contract

 

[Chances mom]

I have had a membership since 2004 and have rented points without using a broker about ten times, always requiring a contract

Did you have to use an actual lawyer or were you able to take information from the vacation club contract and apply it directly to yours? Maybe not word for word for obvious reasons.

 

[Disneypapa]

Did you have to use an actual lawyer or were you able to take information from the vacation club contract and apply it directly to yours? Maybe not word for word for obvious reasons.

Did not use a lawyer. I drew up a contract based on research here on Disney forums and what others have used. Not familiar with vacation club contract, so I do not know how similar the two may be.

 

[Lynne M]

Did you have to use an actual lawyer or were you able to take information from the vacation club contract and apply it directly to yours? Maybe not word for word for obvious reasons.

I think you're misunderstanding what we mean by "contract." It's not a formal legal document, it doesn't need to withstand a court's scrutiny, no lawyers are involved. You don't need to take language from the DVC contract. You're just making a hotel reservation for them, in return for a payment.

It's just a document that describes the terms of the rental. What you will do (make the reservation), what the renter must do (pay you the agreed-upon price by the specified date). What you will do if they don't pay. Whether or not you will refund the renter's money if they cancel. Whether or not you will reschedule the reservation if they wish.

The point of the rental agreement is to make sure that both parties understand and agree on the process and the terms. There are a number of sample contracts floating around on these boards, a quick search should find them.

 

[supersnoop]

I think you're misunderstanding what we mean by "contract." It's not a formal legal document, it doesn't need to withstand a court's scrutiny, no lawyers are involved. You don't need to take language from the DVC contract. You're just making a hotel reservation for them, in return for a payment.

I disagree. In the event of a failure by either party, the contract absolutely needs to withstand a court's scrutiny. It will be the basis for any claim against either party.

 

[JimMIA]

I think you're misunderstanding what we mean by "contract." It's not a formal legal document, it doesn't need to withstand a court's scrutiny, no lawyers are involved. You don't need to take language from the DVC contract. You're just making a hotel reservation for them, in return for a payment.

It's just a document that describes the terms of the rental. What you will do (make the reservation), what the renter must do (pay you the agreed-upon price by the specified date). What you will do if they don't pay. Whether or not you will refund the renter's money if they cancel. Whether or not you will reschedule the reservation if they wish.

The point of the rental agreement is to make sure that both parties understand and agree on the process and the terms. There are a number of sample contracts floating around on these boards, a quick search should find them.

I agree with Lynne.

The biggest risk in a rental is that someone's plans might change and that one party (or BOTH! ) might not understand the consequences of a change.

A straightforward, clearly-worded statement of each party's responsibilities is key to avoiding misunderstandings.

An airtight, legalese contract would be nice if you were negotiating hundreds of millions of dollars in transactions, but this is an agreement covering a few hundred bucks. If it goes bad, nobody's going to sue anyone because it would cost more to sue than you could hope to recover.

 

[Lynne M]

I agree with Lynne.

The biggest risk in a rental is that someone's plans might change and that one party (or BOTH! ) might not understand the consequences of a change.

A straightforward, clearly-worded statement of each party's responsibilities is key to avoiding misunderstandings.

An airtight, legalese contract would be nice if you were negotiating hundreds of millions of dollars in transactions, but this is an agreement covering a few hundred bucks. If it goes bad, nobody's going to sue anyone because it would cost more to sue than you could hope to recover.

Thanks, Jim. Mostly, what I was getting at is that having a lawyer involved in a rental transaction would be major overkill, and having a lawyer draw up a formal contract would probably cost more than you'd make by renting out your points.

In many a year on these boards, I've never heard of a rental ending up in small claims court, let alone a civil suit. It's rare to hear of a rental going awry, and when it does, the cause is much more commonly a simple misunderstanding/miscommunication than fraud. That's why we encourage people to use a rental agreement, to spell out what's going to happen.

 

[Disneypapa]

The document I use is called a "rental agreement" and it does spell out details of rental arrangements and what responsibilities are for both parties if a reschedule or cancellation is necessary. I view it as an absolute must do.