What can REALLY go wrong when renting DVC points?

[Lulubelle17]

I rented my points last August and it was 70/30 then.
debg

It's *********** who does 50/50, I just checked

 

[suebeelin]

My fear as an owner is renting out to a bad rentee... Someone who trashes or smokes in the room.... Or skips out on the bill with a bad credit card. Totally freaks me out.

That being said, it's very rare on both sides for something to go wrong.

 

[scottmel]

I have always found someone to deal with personally thru a referral and have had amazing experiences and never one issue. Rented maybe 15 times?

 

[Sandisw]

I think it comes down to comfort and knowing exactly what can and will happen. We would never rent because we just were not comfortable with the risks and lack of control of the reservation. The no cancel policy wasn't worth the savings, even though we had never had to cancel a trip.

Going through a broker does give you a little more piece of mind as there seems to be less of a chance to lose the money, just the reservation. But, as many have mentioned, the issues with rentals seem to be the exception and not the norm so if you have comfort with the cons, then the savings may very well be worth it for you!

Good luck!

 

[Chocolate Cake]

Going thru a broker you can purchase travel insurance. Well worth the money in this type of situation.

Thank you for posting this. I was wondering if anyone had experience with travel insurance while renting DVC? We are going to go through a broker, but I am scared of last minute illness or just plan old change in plans.

What travel insurance do you feel is the most flexible?

 

[BWV Dreamin]

Thank you for posting this. I was wondering if anyone had experience with travel insurance while renting DVC? We are going to go through a broker, but I am scared of last minute illness or just plan old change in plans.

What travel insurance do you feel is the most flexible?

The broker you use will have an insurance to offer you. Google trip insurance and you will have lots of options. I think the main requirement is that you have that confirmation number as proof of your reservation.

 

[Miffy]

Thank you for posting this. I was wondering if anyone had experience with travel insurance while renting DVC? We are going to go through a broker, but I am scared of last minute illness or just plan old change in plans.

What travel insurance do you feel is the most flexible?

Sorry, I have no info on travel insurance, but if you're concerned about last-minute illness and/or just old change of plans, then perhaps renting DVC points is not the way to go for you. I know the $ savings are quite attractive, but as someone who just had a trip that was changed three times (the snowstorm) and that ended 2 days early (very unexpectedly), I'm in the "will never rent DVC points" camp. Much much easier to have a reservation through Disney--it's flexible, it's easy to change, if things go crazy and you booked with a WDW discount they'll do their best to find you a room with the same discount, and if you leave early you get your money refunded for the days you're not there. A WDW vacation costs so much, I'd rather spend a little more and feel comfortable about unforeseen possibilities. And by spending more, I don't mean adding travel insurance.

I understand that many people rent DVC points and are happy and everything works out. I myself never changed my plans for a WDW trip before this most-recent one and also never left early. But . . . you don't know what could happen.

JMHO.

 

[BWV Dreamin]

Why would you not rent through a broker if they offer travel insurance? Still a sizable savings plus the protection with the insurance.

 

[Dancind]

Before brokers, lots of people rented directly from DVC members through the Rent/Trade board here. And there were very few problems then too. We have slowed way, way down on our trips but still plan some in the future. So I have been renting on and off for several years now, and I ask less than the brokers. I did list some points through a broker once, but found it to be as much work as doing it myself.

As far as cancellation, the member does risk losing their points if it is within 30 days. I've never had anyone cancel or try to change but it could happen. Would certainly try to work with them if it happened, but the 30 days thing is tough.

So, if you find a regular, long term DIS board member with points to rent and plan ahead, you could still get a deal. Just saying.

 

[Miffy]

Why would you not rent through a broker if they offer travel insurance? Still a sizable savings plus the protection with the insurance.

I assume this question was for me (but perhaps it wasn't!).

I think I answered the question in my post. Having just had a trip where I had to change my reservation three times due to the snowstorm, I wouldn't rent DVC points. Period. The travel insurance might have covered the trip but it wouldn't've enabled me to move my reservation. Having my reservation through WDW directly did enable me to do that.

Perhaps what I said wasn't clear on that point.

 

[Chocolate Cake]

Sorry, I have no info on travel insurance, but if you're concerned about last-minute illness and/or just old change of plans, then perhaps renting DVC points is not the way to go for you. I know the $ savings are quite attractive, but as someone who just had a trip that was changed three times (the snowstorm) and that ended 2 days early (very unexpectedly), I'm in the "will never rent DVC points" camp. Much much easier to have a reservation through Disney--it's flexible, it's easy to change, if things go crazy and you booked with a WDW discount they'll do their best to find you a room with the same discount, and if you leave early you get your money refunded for the days you're not there. A WDW vacation costs so much, I'd rather spend a little more and feel comfortable about unforeseen possibilities. And by spending more, I don't mean adding travel insurance.

I understand that many people rent DVC points and are happy and everything works out. I myself never changed my plans for a WDW trip before this most-recent one and also never left early. But . . . you don't know what could happen.

JMHO.

This makes sense. Thank you.

 

[crisi]

Travel insurance generally won't cover a "plain old change in plans." Health emergency, death in the family, job loss, weather, flight issues so you miss your cruise....but not "oh, we aren't going to go after all."

 

[COscrapper]

I would like to know what travel insurance actually does cover a cancellation when you are renting points! I compared plans on insuremytrip.com , and even chatted with an employee there. I explained the situation and he said that no plans cover timeshare points. They use all the biggies like Allianz and AIG, so I'm wondering if there actually ARE any that would cover the cost of the rental. We would never cancel unless it was something catastrophic (a death or very serious illness, job loss), so most trip insurance would cover those issues...but from what I've read, we'd be out the cost of the rental. Unless someone has experienced otherwise...?

 

[larissawbb]

I would like to know what travel insurance actually does cover a cancellation when you are renting points! I compared plans on ************.com , and even chatted with an employee there. I explained the situation and he said that no plans cover timeshare points. They use all the biggies like Allianz and AIG, so I'm wondering if there actually ARE any that would cover the cost of the rental. We would never cancel unless it was something catastrophic (a death or very serious illness, job loss), so most trip insurance would cover those issues...but from what I've read, we'd be out the cost of the rental. Unless someone has experienced otherwise...?

On one of the big three dvc rental websites, there is cancel for any reason travel insurance. It covers your point rental.

 

[dmunsil]

I would like to know what travel insurance actually does cover a cancellation when you are renting points! I compared plans on ************.com , and even chatted with an employee there. I explained the situation and he said that no plans cover timeshare points. They use all the biggies like Allianz and AIG, so I'm wondering if there actually ARE any that would cover the cost of the rental. We would never cancel unless it was something catastrophic (a death or very serious illness, job loss), so most trip insurance would cover those issues...but from what I've read, we'd be out the cost of the rental. Unless someone has experienced otherwise...?

This might be a confusion on the part of the trip insurance person you spoke to. Trip insurance does not cover when someone books their own timeshare using their own timeshare points, because it's not a cash transaction and the value of timeshare points is notoriously difficult to value. When you book a DVC accommodation from an owner you are paying someone cash for accommodations. That's exactly like renting accommodations from any private party, like AirBNB, and I know some insurance companies cover those rentals. The fact that the person who is renting to you is using timeshare points should not be an issue. Your contract is with the person who is doing the booking, and the cash value is clear - it's what you paid.

The question I'd ask is, "Does the insurance cover a cash transaction with a private party, where there is a clear contract specifying the price and what is to be delivered, like a vacation home rental?" If so, it shouldn't matter what kind of underlying accommodation is being provided.

 

[dmunsil]

The question I'd ask is, "Does the insurance cover a cash transaction with a private party, where there is a clear contract specifying the price and what is to be delivered, like a vacation home rental?" If so, it shouldn't matter what kind of underlying accommodation is being provided.

And to answer my own question, I chatted with a CSR at my usual insurer (Allianz) and they said they have no problem covering a private transaction, as long as there is a clear invoice or contract showing the accommodation transaction and showing that it is non-refundable (or the portion that is non-refundable if it's partially refundable), and proof that you paid, via a credit-card statement, cancelled check, PayPal statement, etc. It doesn't matter if the actual property is a timeshare as long is you are paying actual dollars for it and not paying in timeshare points or swapping for your timeshare, or something like that with no accepted cash value.

 

[BWV Dreamin]

And to answer my own question, I chatted with a CSR at my usual insurer (Allianz) and they said they have no problem covering a private transaction, as long as there is a clear invoice or contract showing the accommodation transaction and showing that it is non-refundable (or the portion that is non-refundable if it's partially refundable), and proof that you paid, via a credit-card statement, cancelled check, PayPal statement, etc. It doesn't matter if the actual property is a timeshare as long is you are paying actual dollars for it and not paying in timeshare points or swapping for your timeshare, or something like that with no accepted cash value.

Thanks Don. I think your statements more than clear up any confusion.

 

[bom_noite]

I have rented out points a few time - with no issues. I think the best thing is to have a phone conversation with the renter and feel them out.

One time I only had 30 points I was renting for $10 per. This one board member offered me $8 for 15 points and called me stupid for not taking her offer! I said no thanks - good luck.

 

[DekrRini]

I've rented points several times from someone I found on the dis boards. I've never had a problem. I've never used insurance, which is probably not a good idea, and haven't had a problem. One time I made a last minute trip and had to stay at a value, which was a disappointment TO ME after staying at the deluxe villas a few times. The only way I can afford to stay in a deluxe resort is through renting points. It's worth the risk for me.

One of the things I like about renting points is that a major portion of my trip is paid before I go. For me, it spreads out the 'pain' of paying for a very expensive trip. With luck I'll never get too sick to go or get caught in a snow storm.

 

[TiggerBouncy]

Yes, the owner can back out, even if you go through a broker. If you rent points, 99% of the time they are non-refundable. Most trip insurance will only cover a % and it is on a sliding scale as to how much they will give you.

Apparently I am too trusting a person. What owner would do such a thing> I can't even imagine that! It never even occurred to me if I were renting my points out. Up to now, I have only given them to family but it just surprises me. I would assume that their ability to do this is very limited as hopefully once they have done it once they are forever blacklisted on the broker sites?

As an owner though, I would be worried about them ruining the room or leaving me with problems.