"Renting/Transferring Points for Dummies"

[Sammy]

I am thinking about renting or transferring some of my points as we won't be able to use the rest of them this year. I have no experience with this at all....is there a post or thread out there that runs through the procedure? Do you complete a standard-type of contract? Any information would be greatly appreciated!

Sammy

 

[tjkraz]

I don't think there is any sort of a FAQ, but having rented points a couple of times before buying, I'll throw some thoughts out at you.

- You can either post on the boards that you have points available, or just respond to people looking for points.

- Some folks will only deal with DVC members to whom they can transfer points rather than rent to non-members. The advantage is it greatly reduces your time and energy. The member pays, you transfer the points. End of story. The downside is that you can only transfer in OR out in a single use year. So, make sure you won't find yourself in need of points later in the year.

- If you rent points to a non-member, it may end up being more work than you expected. You will have to be the intermediary between the non-member and DVC. That means checking on dates (which could be a real headache if the member keeps trying different dates and/or resorts), making the reservation, forwarding the paperwork, etc. You may also expend energy working with people who change their mind at the last minute.

- Depending on the number of points you have available, you may have to deal with more than one person to get rid of all of them.

The contract is a really big deal, IMO. You really need this to protect yourself, particularly since the DVC rules are not nearly as liberal as a traditional hotel reservation. IMO, the single most important part of the agreement should be to make the renter aware that the trip CANNOT be cancelled at less than 30 days under any circumstances. You lose your points when you hit 30 days.

Make sure you are paid in full before the 30 day mark arrives, and if not, be prepared to cancel the reservation or risk forfeiting the points.

Aside from that, you'll have to determine your own schedule for payment. Most people want something up front before making the reservation, and then the balance paid at a later date. Some want the balance paid after confirmation of the ressie is received--others will give up to the 30-day mark.

To summarize, you probably want the process to flow something like this:

1. Initial contact.
2. Check for resort availability.
3. Signed contract and down-payment received.
4. Make reservation.
5. Send copy of DVC confirmation to rentee.
6. Balance of payment received.

Hope this helps.

Good luck.

 

[Sammy]

tjkraz:

Thanks so much for taking the time to write such a detailed post. This information is just what I need! Thank you!

 

[ballroombelle]

Yes, thank you for the thread and info.

As a non-member interested in trying a DVC resort I've been considering renting points but after the headaches detailed above...I think I'm back to shying away from renting points, lol!

 

[tjkraz]

Originally posted by ballroombelle
As a non-member interested in trying a DVC resort I've been considering renting points but after the headaches detailed above...I think I'm back to shying away from renting points, lol!

Unless you're worried about the 30-day cancellation issue, I wouldn't dismiss it altogether. My post was written from the perspective of a point owner, detailing some of the headaches that Sammy could encounter if he/she decides to move forward. The reality is, for the DVC member, the process can be very simple or very difficult depending upon the people to whom you may end up renting your points.

And that's not to say that they people on the more 'difficult' end of the scale are out of line. In fact, the last time I rented points before becoming a member, I went into the transaction with several dates and resort in mind. I think the member ended up calling DVC at least 3 times to check on different combos for me. And, he couldn't have been more accommodating throughout the process.

IMO, DVC members wishing to rent their points just need to understand that there's a little more than 10 minutes worth of work involved.

So, don't be afraid to pursue it further. Post something on the rent/trade board with your dates and point needs, and I bet you'll get a handful of replies within 24 hours. If you get into the process and get cold feet, just politely bow out. There are always others who are looking for points, so I doubt you will get much grief from the member you are dealing with.

On the other hand, if you're bothered by the 30 day cancellation issue, then point rental might not be good for you. The fact of the matter is that ANY DVC reservations made are virtually uncancellable within 30 days. Specifically, the points are placed into a holding account, and (I'm trying to state this properly from memory) can only be used to book a stay on 60 days notice, within 60 days of the end of the member's Use Year.

Given those restrictions, it's reasonable to say that the member effectively loses his/her points if the renter backs-out less than 30 days before the scheduled stay. The member is renting points specifically because he/she cannot use the points before the end of the Use Year, and the additional booking restrictions make it virtually impossible to re-rent the points to another individual.

Good luck.

 

[ballroombelle]

Thanks so much for the detailed response, it's much appreciated .

The 30-day cancellation issue is actually something I had not thoroughly considered...it's not so much an issue but it's good to have a heads-up on the differing protocols for cancellation.

I assume though that if we were to simply reserve a DVC room directly with CRO instead of renting points, the cancellation policy would be the same as if we were reserving at any WDW resort property.

At any rate, renting points seems like such a good way to try the DVC...thanks for the insight.

 

[tjkraz]

You are correct about the cancellation policy. If you book through CRO, you can cancel on much shorter notice (can't remember exactly what it is.) Also, when booking through CRO, you get daily housekeeping.

DVC uses a less-generous housekeeping schedule, which can be an issue for some, but is a non-issue for we members.

Anyway, the main reason to rent points is, quite frankly, to save money.

For example, the Rack Rate for a Studio at the Boardwalk in Value Season is $289. Add in roughly 10% in resort taxes and you're paying about $320 for a single night in that room. (In the interest of fairness, Disney does offer discounts from time-to-time which can go as high as 40% off of the Rack Rate. So, if you're more comfortable, use a figure of $196 per night, but be aware of its somewhat ambiguous nature.)

Now, that same Studio room booked for, say, a Sunday night in the first couple of weeks of December will cost a DVC member as few as 9 points. At a typical rental rate of $10-12 per point, that room would cost you no more than $108 per night. That's about 34% of the Rack Rate and 55% of the best cash discount you'll ever see.

With that said, DVC "seasons" and Disney "seasons" vary wildly. So, your best bet is to plug some dates into the point calculator on this site and figure out how much you would save paying $10-12 per point to rent vs. the rates that CRO quotes you for the same room.

Good luck.

 

[gerber]

I read your note and was wondering if you still had points available to rent. Please let me know. We are interested in staying for 1 week in March of 2005 and would like to try out DVC before buying. Let me know.

 

[Sammy]

Am I correct in that banked points can be rented, but not transferred? We have some that came with our contract but will not be able to use.

Thanks again!
Sammy

 

[JudyS]

Originally posted by Sammy
Am I correct in that banked points can be rented, but not transferred? ...

I don't think you can transfer banked points, however, you can rent them by making a reservation for your renter.

 

[disneyberry]

<font face="times" size="+0">Sammy, it seems like most of your questions are answered already. But if you have additional transferring points questions, please feel free to reference the link in my sig for more info. HTH!</font>