Effective DVC Point Rental Agreements

[ACDSNY]

I noticed in one of the posts it mentioned DVC member cannot accept credit card payment via www.paypal.com. What's the reason behind this?

I know when I rented points I paid with a credit card using paypal.

 

[CarolMN]

I noticed in one of the posts it mentioned DVC member cannot accept credit card payment via www.paypal.com. What's the reason behind this?

I know when I rented points I paid with a credit card using paypal.

It's just a preference on the part of that particular person. It costs more to accept credit cards via paypal and some members don't want to use paypal at all. Since terms are entirely negotiable between member and renter, those who want to use a credit card & paypal need to find an owner who will accept that.

Best wishes -

 

[ACDSNY]

As a renter I found it a little difficult to check references. With all the privacy issues these days I imagine the DVC members have a difficult time suppling references. How is that typically handled?

 

[deerh]

When I rented points to a nice NJ guy for HHI this summer, I requested a money order instead of a check/etc. He sent me the deposit in money order form, I made a copy of our ressie, faxed it to him, emailed him and even spoke to him on the phone.

I think a money order is safe on both ends. But, JMHO.
This is a great thread by the way..

DeerH

 

[Dean]

I noticed in one of the posts it mentioned DVC member cannot accept credit card payment via www.paypal.com. What's the reason behind this?

I know when I rented points I paid with a credit card using paypal.

To accept a CC under paypal you must have a business membership with them. That means that you pay a fee on ALL payments, not just those done with a CC. When I upgraded my membership a few years ago to the business account, I was under the mistaken impression that the extra fees were for the CC only, for that reason I recently downgraded my paypal membership and will no longer be able to accept CC payments.

While I don't rent as much as I once did, I've been renting for 10 years with a number of rentals over the years both DVC and other timeshares. I've never gone with a formal rental agreement. I've had potential renters ask about it or even ask if I'd be willing to do one. I've always been willing but to date, everyone that has asked has felt comfortable proceeding without one. IMO, an agreement offers no protection unless you'd be willing to go to court or get a lawyer, something that would probably never be a reasonable thing to pursue in these situations.

My agreement, which I put in email, simply states the following:

• Name, address and phone of both parties.
• Resort, dates and unit size.
• deposit amount and date, usually 120 days out.
• final payment amount and date
• And that all is non refundable.

Simple and to the point. That way I have options if the renter doesn't live up to their portion and the renter has the option of walking away at different points along the way, without part or all of their money of course. I've had a number who didn't live up to the letter of the law but since my purpose isn't to churn the points but to offer a fair rental, I have used flexibility. I build in some time to give me options if I need it. I've actually increased my final payment window from 90 to 120 days out simply because I also deal with other timeshare rentals and the extra time gives me more protection there and I like things to be consistent as much as possible.

I place reasonable requests and make sure the other party knows they can't be guaranteed. For DVC points I try to stay in the first half of my use year renting current year points. For special situations like transfers, my terms could be more stringent to protect myself.

 

[WebmasterDoc]

While some seem to have chosen not use a formal rental agreement, DVC has included language specific to the nature of agreements in Exhibit "F" - paragraph 5 to the Master Deed:

" ... All leasing or rental agreements relating to the use, occupancy and possession of any Vacation Home must be in writing (emphasis added) and must set forth an acknowledgement and consent on the part of the lessee-sublessee-tenant to use, occupy and possess such Vacation Home in conformance and compliance with the provisions of the Condominium Documents and these Condominium Rules and Regulations. ..."

Regardless whether some feel the agreement offers any protection, the fact remains that DVC mentions it's use in the POS and specifically states what it must contain, so I sure can't see any harm in using a rental contract- especially when sample documents are readily available - just like in this thread.

I would (and do) always advise renters to expect/demand a rental contract from the member from whom they will rent.

 

[Dean]

While some seem to have chosen not use a formal rental agreement, DVC has included language specific to the nature of agreements in Exhibit "F" - paragraph 5 to the Master Deed:

" ... All leasing or rental agreements relating to the use, occupancy and possession of any Vacation Home must be in writing (emphasis added) and must set forth an acknowledgement and consent on the part of the lessee-sublessee-tenant to use, occupy and possess such Vacation Home in conformance and compliance with the provisions of the Condominium Documents and these Condominium Rules and Regulations. ..."

Regardless whether some feel the agreement offers any protection, the fact remains that DVC mentions it's use in the POS and specifically states what it must contain, so I sure can't see any harm in using a rental contract- especially when sample documents are readily available - just like in this thread.

I would (and do) always advise renters to expect/demand a rental contract from the member from whom they will rent.

I'm assuming this is in each of the individual POS since it's not in the multi site one. There are also provisions in the same paragraph if there is no written agreement. There is also no mechanism to provide any written agreement to DVC or DVD. To be in compliance with this provision one would not only have to have a written agreement but it would have to contain the language at the end of your quote. This is aimed at times when the member owes money to DVC such that they could collect directly from the renter a portion or all that is owed. DVC would go to the renter and ask for any money owed and kick them out if they didn't pay. But there are other method's to police this as any member in this situation would not be a member in good standing and thus would not be allowed to make a reservation at all or would not be allowed to check in if they lost their good standing status after making the reservation but before check in.

 

[WebmasterDoc]

Interesting explanation for the legal purpose that language was included in the POS.

Thanks, but I'll still advise renters to ask for a contract - even though someone may feel there is no way for the official DVC Policy to be meaningful. I found it stated in two multi-site POS and that's good enough for me- especially for something that costs nothing to provide.

While it doesn't specifically mention the form of the written rental contract, my assumption is that an email would qualify. There are even ways to digitally sign emails if desired. Looks like even those that are opposed to any rental contract admit to putting the same language in emails- so it's a bit confusing why the contrary advice that no contract be used.

Bottom line, is what's the harm in using a rental contract - especially if it gives the renter an additional level of security and answers a concern (at some level) raised by DVC itself?

 

[Dean]

Interesting explanation for the legal purpose that language was included in the POS.

Thanks, but I'll still advise renters to ask for a contract - even though someone may feel there is no way for the official DVC Policy to be meaningful. I found it stated in two multi-site POS and that's good enough for me- especially for something that costs nothing to provide.

While it doesn't specifically mention the form of the written rental contract, my assumption is that an email would qualify. There are even ways to digitally sign emails if desired. Looks like even those that are opposed to any rental contract admit to putting the same language in emails- so it's a bit confusing why the contrary advice that no contract be used.

Bottom line, is what's the harm in using a rental contract - especially if it gives the renter an additional level of security and answers a concern (at some level) raised by DVC itself?

I didn't find it in the Multi site POS, must have missed it but what you quoted is the same as in the two individual ones I looked at. I think you misunderstood my point. I don't use a written contract simply because I don't feel like it adds to any protection for myself or the renter. I think it's more important to be clear about the situation. If one prefers to use one, that's fine and I can understand. But don't kid yourself that it gives either one any protection unless you're willing to pursue legal action. I can see your point that emails spelling out the specifics would qualify, maybe so, I'm not sure. But to be compliant with the section you quote, one would have to include certain language that comes straight from what you quoted.

must set forth an acknowledgement and consent on the part of the lessee-sublessee-tenant to use, occupy and possess such Vacation Home in conformance and compliance with the provisions of the Condominium Documents and these Condominium Rules and Regulations

 

[WebmasterDoc]

... But to be compliant with the section you quote, one would have to include certain language that comes straight from what you quoted.

I'll repeat the question I already posed- what is the harm in doing just what DVC has outlined? In the contract posted by JimC, that language is already included and there is no extra cost to include the language asked by DVC. Seems to be a moot point/no brainer to me and I will still continue to suggest to renters (and members) to use a contract as DVC indicates. I also realize that there are those who find it a waste of their time.

 

[Dean]

I'll repeat the question I already posed- what is the harm in doing just what DVC has outlined? In the contract posted by JimC, that language is already included and there is no extra cost to include the language asked by DVC. Seems to be a moot point/no brainer to me and I will still continue to suggest to renters (and members) to use a contract as DVC indicates. I also realize that there are those who find it a waste of their time.

No harm at all, I thought it was a rhetorical question. But no benefit for most situations either. Edited to add that there is no harm as long as you include the proper and complete information. A written contract becomes the agreement no matter what else might have been said.

 

[Ducky4Disney]

I'm so glad I found this thread! DH and I are looking into renting our points next year (we're preparing for baby) and I was wondering about how to write a contract or if there was one available.

On a side note: how is the best way to offer points for rent? In a lump sum? In several smaller packages? We have 400-ish SSR points to rent next year, do we just throw it all out there and then take ressies as they come in piece-meal until all or most are rented? It just sounds so will-nilly to me!

D4D

 

[Smile]

Great topic and Thanks for all information.

Does anyone know what the process, paper work if we want to transfer to another member?

Cheers,

 

[jpolak]

great posting very helpful

 

[seamour]

Thanks to everyone that contributed to this thread, some great info and samples in here. I really appreciate it. Wondering in regards to the contracts, I see one mentions an electronic signature, I have never heard of such a thing except when filing taxes. How does that work ? And otherwise do you snail mail the signed contract to the renter/member ?
TIA

 

[WithFaith50]

JimC...that's a great looking contract. ...
If a point transfer is involved, does the language need to change?

Does anyone have a sample contract for transfers that they can post? I am thinking about renting points via a transfer and am unsure of the process.
Will I be expected to pay for the points "upfront" (ie. 100%), then hope that the person I'm dealing with will follow through and have the points transferred into my account?

 

[robinb]

Will I be expected to pay for the points "upfront" (ie. 100%), then hope that the person I'm dealing with will follow through and have the points transferred into my account?

You can change the language of any of the examples in this thread to cover transferred points. I would expect to pay 100% in advance and trust the other member to transfer the points. That's one reason I would not rent from a newbie to the DIS. I have a higher level of trust with someone who has been around the DIS for a while and posts about things other than how many points they have for sale.

 

[JimC]

This may be a bit more complicated as I believe DVC rules state that there can not be a payment between the parties for transferred points. The rules on point transfers are a bit complicated but MS wil explain any restrictions to you if you call.

I bet Doc or some others have a better handle on this than I do.

 

[JimC]

Here is an updated sample agreement. This is not legal advice and you should consult a qualified lawyer if you wish to ensure the legal intent of the agreement.

Sample Rental Agreement for Disney Vacation Club Points

This agreement is made the _____ day of ____________, 2006 by and between RENTER1 and RENTER2 (together “Renter”) and MEMBER1 and MEMBER2 (together “Member”).

Terms:
Non-Disney Vacation Club Members
1 – 200 points $10.00 per point
201 or more points $ 9.00 per point

Disney Vacation Club Members
1 – 200 points $ 8.00 per point
201 or more points $ 7.00 per point

In addition to payment for points, Renter is responsible for any exchange fees assessed for non-Disney Vacation Club Resort accommodations. Such fees are due at the time of the initial Security Deposit, are in addition to the Security Deposit requirements and are non-refundable. Renter agrees to provide the Resort with an acceptable credit card upon check-in for incidentals and any other charges imposed by the Resort connected to Renter’s stay at and use of the Resort. Member will always retain control over the reservation. Renter may not sublease to a third party.

Renter will email Member a photo copy of his/her driver’s license or state approved alternate photo ID, the first and last names and ages of each person staying at the Resort, the arrival and departure days and dates, the Resort (first, second and third choice), the accommodations (studio, 1 bedroom, 2 bedroom, grand villa, etc – if you are flexible rank the order of preference) and any special requests (non-smoking, medical restrictions, and the like). The information provided by Renter shall be attached to and become a part of the Agreement.

Member will confirm availability with Member Services and make reservation in Renter’s name. At this time Member will provide the Disney Vacation Club confirmation number to Renter. 10% Security Deposit, plus exchange fees (if any) are due via PayPal.

Upon receipt of written confirmation from Disney Vacation Club (this takes from five to ten business days) and confirmation from PayPal of Renter’s initial 10% Security Deposit and exchange fees (if any); Member will fax the confirmation notice to Renter. The confirmation will be attached to and become part of the Agreement. At this time a payment of 20% of the agreed to terms is due via PayPal. Confirmation is required from PayPal within 5 business days or reservation will be cancelled and all monies paid to date by Renter shall be forfeited.

The balance of 80% is due 60 days prior to the arrival date via PayPal. If PayPal does not confirm the final payment within 5 business days of the due date, the Member shall contact Renter to advise that PayPal must confirm the final payment within an additional 5 business days or the reservation shall be cancelled and all monies paid to date forfeited.

If Renter wishes to change the reservation, Member will make reasonable efforts to assist Renter to make such changes. Renter shall be responsible for 100% of any additional charges assessed or costs incurred to accommodate Renter’s changes. Payment for these changes shall be due via PayPal upon e-mail or fax notice from Member. Confirmation of payment for such changes is required from PayPal within 5 business days of such notice or reservation will be cancelled and all monies paid will be forfeited.

If Renter wishes to cancel the reservation, Member will make reasonable efforts to assist Renter to cancel the reservation on a timely basis. Cancellation must take place 31 days or more in advance of arrival to avoid penalties. Renter will be repaid for any points that are not subject to any restrictions and are returned to their original Disney Vacation Club status and use year. Points that are in holding accounts, or are subject to banking or borrowing restrictions or are permanently transferred outside of the Disney Vacation Club Resort collection are repaid only if Member can rent them and only to the extent of any rental payments received by Member for such points up to and not to exceed the amounts paid by Renter. Member shall deduct any nonrefundable fees or costs incurred by Member prior to returning any monies due to Renter. Member shall return any monies due to Renter via PayPal within 5 business days of the date that such determination is made.

Members are subject to all reservation policies of Disney Vacation Club whenever they make a reservation – whether it's for the Member, a guest or a renter. If a reservation is made within 31 days of travel, Members are automatically subject to holding account rules should they need to cancel the reservation. Because of this restriction Renter must make payment in full via PayPal (must be confirmed by PayPal) before Member will make a reservation within 61 days of arrival.

Renter agrees to abide by all Disney Vacation Club terms, policies and rules applicable to Disney Vacation Club members and Disney Vacation Club membership. Renter agrees to be responsible for any unpaid charges or damages to the unit rented, including all contents and improvements, Disney Vacation Club property and Disney property during his/her stay that are assessed against Member or his membership. Any unpaid charges or damages assessed shall be reimbursed to Member via PayPal within 10 business days of notice to Renter. Sending a fax or e-mail copy of a Disney Vacation Club or other Walt Disney Company communication assessing the charges or damages shall satisfy notice to Renter. Any unused Security Deposit will be returned to the Renter via U.S. Mail 14 days after check-out.

This is an agreement to rent points that represent accommodations only. There are no ticket media, transportation, meals, transfers, insurance, or other items included.

Renter understands that Members do not get daily housekeeping services at Disney Vacation Club Resorts. If your stay is for less than eight nights, you'll receive Trash & Towel service on day four. If your stay is for eight nights or longer, you'll receive full cleaning service on day four, and Trash & Towel service on day eight. After that, the cycle begins again on day twelve. Day one is check-in day.

Pets are not permitted to stay at Disney Vacation Club Resorts, except for service animals as defined by the Americans with Disabilities Act.


Agreed and accepted on the date first shown above.


(Each party should sign and date the Agreement)

 

[psimon]

Renter will email Member a photo copy of his/her driver’s license or state approved alternate photo ID, the first and last names and ages of each person staying at the Resort, the arrival and departure days and dates, the Resort (first, second and third choice), the accommodations (studio, 1 bedroom, 2 bedroom, grand villa, etc – if you are flexible rank the order of preference) and any special requests (non-smoking, medical restrictions, and the like). The information provided by Renter shall be attached to and become a part of the Agreement.

Wow, a photocopy of a Driver's license? Isn't that pushing the privacy issue? Face it, Disney is going to ask for proof upon check-in. Would you want to give up a copy of your driver's license with your DL photo and DL number to a stranger?

I feel that if they provide YOU with their names, and then provide YOU with the $$$ (and I mean verified cash, such as Paypal, money order or bank check) their obligation to you is complete. If they give you the wrong name, they won't be able to check in.... their problem, not yours! They have to understand that.

Just my $0.02!

---Paul in Southern NJ