As a DVC owner that will be renting points from time to time, I've been thinking of drafting an agreement that is fair and equal
to both us and our renter while covering most scenarios that can surface. I've read a few agreements online and while those were
drafted by agencies that have made a business out of assisting DVC members find renters, the language seems one sided.
I'd like to draft something closer to neutral yet comprehensive. An agreement will likely only ever need to come into enforcement
if there was a cancellation, either initiated by the renter, Disney or us. There could be a rarity like weather that impacts a planned trip
though it seems that is becoming less rare and more common.
I'd like to open a discussion into the different concerns a renter and an owner have so the agreement can cover both. For me, and this might be a narrow view, my concern centers around point loss or loss of point value ie; points in holding & points past the banking deadline.
One such scenario comes to mind, a reservation is made March 10th for a September 25th check in. For us, September is past our banking deadline. The renter cancels the reservation on August 21st. These points will have lost some value for us because the pressure to rent them means renting them for less per point than the original reservation. If we are unable to rent them out, they will be forfeit (provided we ourselves cannot use them) and at that point, have zero value. Because we aren't on the reservation, we cannot purchase any trip interruption coverage unlike the renter, who probably can buy a contract, just not from Disney (I don't think anyway, maybe they can?)
If the renter cancels within the 31 days prior to the reservation, the points are then placed into holding. I have no personal experience with points in holding but I have read about it and what I've read suggests it further devalues them and complicates using them with additional restrictions. I might be misinterpreting the rules but it seems like the probability of point forfeiture increases exponentially when points are in holding. An owner would have to discount the points substantially in order to rent them, quite possibly for a rate that is just about equal to the dues on those points which at least negates additional loss from the dues.
From the flipside, there are a number of equally disastrous scenarios if an owner cancels a reservation and the renter pays for travel to the resort only to be told that no reservation exists. I cannot imagine any reason, other than nonpayment, why an owner would do that and no reason why it would happen without communication with the renter beforehand. Disney could cancel a reservation if the owner is behind on dues or if their points are under a mortgage, if said mortgage isn't current. The onus to communicate this to the renter falls on the owner. Both Disney scenarios are not risks for me so I'm not concerned about a Disney cancellation. From what I have read, if Disney has building and maintenance issues that render the studio/suite unusable, Disney keeps others in inventory so the renter would still have an accommodation.
If I am over thinking it, tell me. I'm just looking to provide something that provides a degree of comfort and assurance to both sides of the equation.
I have a few pending reservations for renters and while those were done without a contract, I've done my best to be transparent about the things which might concern a renter, namely my DVC contract dues. I provided screen shots and forwarded emails. I gave my personal cell and email. Renters are helping me as much as I am helping them, to save over the Disney cash price. I'd like to think my rentals will always go smoothly and quite possibly they will but life happens. I don't share Sheldon Cooper's love of contracts but I can recognize when they are useful and when money changes hands, it seems like a good time for a contract!
Okay, so if you have some thoughts on the subject, lets talk about them.
to both us and our renter while covering most scenarios that can surface. I've read a few agreements online and while those were
drafted by agencies that have made a business out of assisting DVC members find renters, the language seems one sided.
I'd like to draft something closer to neutral yet comprehensive. An agreement will likely only ever need to come into enforcement
if there was a cancellation, either initiated by the renter, Disney or us. There could be a rarity like weather that impacts a planned trip
though it seems that is becoming less rare and more common.
I'd like to open a discussion into the different concerns a renter and an owner have so the agreement can cover both. For me, and this might be a narrow view, my concern centers around point loss or loss of point value ie; points in holding & points past the banking deadline.
One such scenario comes to mind, a reservation is made March 10th for a September 25th check in. For us, September is past our banking deadline. The renter cancels the reservation on August 21st. These points will have lost some value for us because the pressure to rent them means renting them for less per point than the original reservation. If we are unable to rent them out, they will be forfeit (provided we ourselves cannot use them) and at that point, have zero value. Because we aren't on the reservation, we cannot purchase any trip interruption coverage unlike the renter, who probably can buy a contract, just not from Disney (I don't think anyway, maybe they can?)
If the renter cancels within the 31 days prior to the reservation, the points are then placed into holding. I have no personal experience with points in holding but I have read about it and what I've read suggests it further devalues them and complicates using them with additional restrictions. I might be misinterpreting the rules but it seems like the probability of point forfeiture increases exponentially when points are in holding. An owner would have to discount the points substantially in order to rent them, quite possibly for a rate that is just about equal to the dues on those points which at least negates additional loss from the dues.
From the flipside, there are a number of equally disastrous scenarios if an owner cancels a reservation and the renter pays for travel to the resort only to be told that no reservation exists. I cannot imagine any reason, other than nonpayment, why an owner would do that and no reason why it would happen without communication with the renter beforehand. Disney could cancel a reservation if the owner is behind on dues or if their points are under a mortgage, if said mortgage isn't current. The onus to communicate this to the renter falls on the owner. Both Disney scenarios are not risks for me so I'm not concerned about a Disney cancellation. From what I have read, if Disney has building and maintenance issues that render the studio/suite unusable, Disney keeps others in inventory so the renter would still have an accommodation.
If I am over thinking it, tell me. I'm just looking to provide something that provides a degree of comfort and assurance to both sides of the equation.
I have a few pending reservations for renters and while those were done without a contract, I've done my best to be transparent about the things which might concern a renter, namely my DVC contract dues. I provided screen shots and forwarded emails. I gave my personal cell and email. Renters are helping me as much as I am helping them, to save over the Disney cash price. I'd like to think my rentals will always go smoothly and quite possibly they will but life happens. I don't share Sheldon Cooper's love of contracts but I can recognize when they are useful and when money changes hands, it seems like a good time for a contract!
Okay, so if you have some thoughts on the subject, lets talk about them.
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