Would this rental agreement work?

[sajetto]

Hi! I've been on this board a few times with various questions. I decided on renting 240 points at OKW for my wedding and honeymoon. As of yet, I have not been able to find someone with that many points for Jan 2007. My question is that when I do finally track down someone I would like to make use of a suggestion given to me on another board.

"Make an agreement in place where both of you agree that the money should be put into escrow until you check in, and make sure everything is ok. You can release the money at that point.. I't's our first time renting. 100% of the rental balance will be paid in full once we receive the reservation confirmation that he gets from Disney and call to confirmm. It will be held in an escrow account until we check in at BCV. Once we check in, the money will be released to the seller. It protects him too...he gets 100% of his money even if we don't show up."

This was suggested to me on the disney central boards and I thought is was a great idea. What do you guys think, do any of you DVC owners think this is an arragement that you would agree to if you were renting? Thanks!!

 

[Doctor P]

Absolutely unreasonable, though I understand the concerns that spur the suggestion. The member should not have to give up access to their points for up to two years and wait for the money in return, or be subject to the vagaries of someone who didn't like the room they got. But whatever you can negotiate, go for it, and try to get the protections you desire. I'm sure you will find a member whose situation will allow you to be accomodated, but some are trying to get the funds to use for an alternative trip that needs to be paid up front, so I doubt they will be happy about making this concession.

 

[sajetto]

Sorry, I didn't post all of it....


"It is a clear an straightforward process on escrow.com. There is also a calculator to figure the cost of setting up the account. For my $2450. balance, it will be around $79.00 I don't mind paying that for peace of mind! Just follow the steps on the website. We are renting points from someone that posted on the disboards trade/rent forum. I't's our first time renting. 100% of the rental balance will be paid in full once we receive the reservation confirmation that he gets from Disney and call to confirmm. It will be held in an escrow account until we check into BCV. Once we check in, the money will be released to the seller. It protects him too...he gets 100% of his money even if we don't show up. We can rent our points to someone else if an emergency comes up and he will change the reservation names for us. There is also a written agreeement with these terms that both of us will sign. I really think it is a fair deal for both parties."

 

[TCPluto]

Not only unreasonable, it will never work, in the scenario you describe. If you proceed with this plan, you'll never get a reservation from a member.

I would suggest just going through Disney for your stay. It will cost you over twice as much for the same reservation, but it will give you the peace of mind that you can cancel at the drop of a hat, with no penalty.

 

[superdiz]

I'm a renter and I understand where you are coming from, but you really need to look at this from the other point of view.

This person's points are locked up with you for a year. That means if you haven't set up said escrow account, they've lost their points and they are screwed. Anyone can sign something and say it's legal, but still not come through.

DVC point renting is all about trust. If you don't trust the person offering to rent you the points, keep looking. I haven't signed anything, I've paid 1/2 up front when they book, and 1/2 when I get confirmation. I *think* that's how it's usually done.

 

[sajetto]

I would suggest just going through Disney for your stay. It will cost you over twice as much for the same reservation, but it will give you the peace of mind that you can cancel at the drop of a hat, with no penalty.

I was just asking if anyone had heard of it being done. It seemed a bit "iffy" to me but I wanted to ask anyway. My peace of mind is worth a lot to me, but not worth that much! I am a graduate student after all

 

[dianeschlicht]

I really doubt very many members would be interested in that arrangement. You are planning a stay that is almost a year away, and the owner would have to wait nearly a year for their money? In the mean time, the use they had in mind for that money (a lot of foks rent out their points so they can use the money for other vacation options) is long past. I agree with Doctor P that this sounds unreasonable. That is especially true when there are plenty of folks out there willing to rent without those kinds of restrictions. The member is taking just as a big a risk as the person renting the points in these transactions. I believe any contract should be initiated by the owner, not the person who is renting.

 

[superdiz]

If an owner doesn't initiate a contract and the renter wants something in writing, I don't see a problem with that. I haven't signed a contract in my rentals but I would be more than willing to do so if the other party was nervous in any way.

 

[Deb & Bill]

As the non-owner, the more stipulations you put upon the rental of the reservation, the fewer members will even contact you. Put up a very generic request, see who responds. Before you ask them to check for you, ask them about terms and see if they might agree to some of your terms. You're just scaring them away with doing like the other board suggested.

I don't rent out my points, but some of the requests that I see on the R/T Board would scare me out of renting to that person because of their demands.

If you really want a DVC reservation, you have to consider the owner of the points first. If you don't like what they have to offer, try another. But don't give yourself a bad name on that board by your demands.

 

[dianeschlicht]

If an owner doesn't initiate a contract and the renter wants something in writing, I don't see a problem with that. I haven't signed a contract in my rentals but I would be more than willing to do so if the other party was nervous in any way.

You would wait a year for your money?

 

[sajetto]

I must have posted this incorrectly Those were not my demands, that was someone else's post on another board with a different rental agreement. I was just curious about how often that was really done and if it actually works. My posts on the R/T board are very generic however I did request for $10 per point in the message not the title. I know it is very far in advance and as long as the owner is willing to work with me and I feel a sense of trust I'm rather agreeable. I realize that the escrow situation is not feasible and I won't be requesting it. Thanks for all the help!

 

[superdiz]

Diane,

NO way Jose, I wouldn't wait a year for my money! I was trying to say, if one side of the party wanted an agreement in writing it would be fine with me if it were the renter's idea or the owner's.

The only contract I see necessary signing would be one in which the terms are pay 1/2 upon booking and 1/2 upon receiving confirmation. I don't like the escrow idea either. Not fair to the DVC member.

Sorry I wasn't clear!

 

[dianeschlicht]

Diane,

NO way Jose, I wouldn't wait a year for my money! I was trying to say, if one side of the party wanted an agreement in writing it would be fine with me if it were the renter's idea or the owner's.

The only contract I see necessary signing would be one in which the terms are pay 1/2 upon booking and 1/2 upon receiving confirmation. I don't like the escrow idea either. Not fair to the DVC member.

Sorry I wasn't clear!

But the contract the OP was talking about involved escrow with payment to the owner at the time of check in. That's the part I thought was unreasonable.

Sajetto,
I think it is perfectly reasonable to ask for some sort of contract, it's just the escrow thing I think is unreasonable. THe part that a lot of renters miss is that the trust has to be just as great on BOTH sides of the agreement. The owners has just as much if not more to lose in some cases.

Because you are needing a large number of points, you might have to wait until a bit closer to your dates to actually find someone willing to rent you that many points all at one time. The owners who have mega amounts of points and who rent them out on a regualar basis are probably going to be the ones most likely to be able to help you, and most of them have developed a relationship of trust with numerous regular renters, so they are likely to feel threatened by too many newbie demands. I think it's good that you worded your requests on the R&T board generically, but if some of those folks have read this thread, they might get frieghtened off. I know you are only giving an example of what another board told you COULD be done, but in reality, I don't know of anyone who has ever actually done that specific scenario.

I hope you find the points you are looking for, and soon. Your wedding in Disney is something I wish my kids would have done!!

 

[sajetto]

I hope you find the points you are looking for, and soon. Your wedding in Disney is something I wish my kids would have done!!

I hope so too! My DF and I would really like to get this whole thing over with My parents are so happy we are doing the wedding this way b/c it means they don't have to plan anything, for them that is a major plus

 

[superdiz]

As another Disney bride, I can say my Mom wasn't too thrilled about the idea at first. She's still not crazy that the family has to travel from Boston, but I figure they'll get over it once they see how much fun it is going to be!! I'm the only Disney nut in my family, so glad I'm marrying one!!

 

[RobDoc]

You could also see if a combination of cash/escrow would appeal to someone where you would pay a deposit ahead of time and the balance would go into escrow. I would think a premium could be acceptable to the member to accept this arrangement - especially if it's an important issue for you.

I think one obstacle is the additional trust required of the member who must commit his/her points far in advance, trust you to send payment to him, trust you to send payment to the escrow company and then trust the escrow company to forward final payment to the member. As most have indicated, that level of trust may be more than members want to deal with unless there is some financial incentive to do so.

Good luck with the rental.

 

[sajetto]

You could also see if a combination of cash/escrow would appeal to someone where you would pay a deposit ahead of time and the balance would go into escrow. I would think a premium could be acceptable to the member to accept this arrangement - especially if it's an important issue for you.

I think one obstacle is the additional trust required of the member who must commit his/her points far in advance, trust you to send payment to him, trust you to send payment to the escrow company and then trust the escrow company to forward final payment to the member. As most have indicated, that level of trust may be more than members want to deal with unless there is some financial incentive to do so.

Good luck with the rental.

Whew! That is a lot more trust than I would personally want to deal with. Whoever I rent from, I want to have a good relationship with, not tick him or her off the first second. I really appreciate all this help and advice. Your suggestion does sound better, but it still is asking more than I think any DVC owner would want to take on. Thanks again!

Caroline