Effective DVC Point Rental Agreements

[Dean]

IMO there is a downside to all of these complicated contracts. As I've said before, I don't use a formal contract but I am very clear on the specifics which is really all a contract is good for anyway. Basically we spell out price, dates, resort, unit type, deposit and final payment date all non refundable and I make sure the other party is clear as well. IMO listing the points is risky for the owner and confusing for many renters. I also think it opens the door for second guessing. If the owners is giving the renter control of the points, then I'd agree with listing them including expiration, banking, etc; otherwise I think it's an unnecessary complication and asking for trouble. But that assumes you'll let them rebook, sublet, etc then when nothing is available to change, one has a mess.

 

[FinallyFL]

This is what I put:
All funds paid to MEMBER are non-refundable, regardless of reason or circumstance, and will not be applied to any future agreements between MEMBER, RENTER, and/or any other third party, unless the DVC Resort listed below has been shut down during the check-in and check-out date listed below. In which case during a shut down of the DVC Resort listed below a full refund or rebook in this event as allowed by the returned points.

Thanks

 

[KAT4DISNEY]

But that assumes you'll let them rebook, sublet, etc then when nothing is available to change, one has a mess.

I'd say that most of that has only occurred since the resort closures. Though I list point totals on the agreement it's 1 page long and that page definitely isn't filled.

 

[Dean]

I'd say that most of that has only occurred since the resort closures. Though I list point totals on the agreement it's 1 page long and that page definitely isn't filled.

It's one thing to give them the option if something happens, but when you tie the points into the original agreement you're inferring they have control of those points even if there is language otherwise elsewhere. A lot of renters don't understand the points system or the limitations of a timeshare. Plus like family members, they often think it's free once you own it. And if they know you can cancel and get the points back they often assume they have the same value as they did when they rented. So I'd say either keep it very clear and simple or have a multi page document that covers all contingencies, the in between is more likely to get you.

 

[ABE4DISNEY]

IMO there is a downside to all of these complicated contracts. As I've said before, I don't use a formal contract but I am very clear on the specifics which is really all a contract is good for anyway. Basically we spell out price, dates, resort, unit type, deposit and final payment date all non refundable and I make sure the other party is clear as well. IMO listing the points is risky for the owner and confusing for many renters. I also think it opens the door for second guessing. If the owners is giving the renter control of the points, then I'd agree with listing them including expiration, banking, etc; otherwise I think it's an unnecessary complication and asking for trouble. But that assumes you'll let them rebook, sublet, etc then when nothing is available to change, one has a mess.

I understand totally what you are saying. Do you have a simpler contract to share?

 

[Dean]

I understand totally what you are saying. Do you have a simpler contract to share?

As I said above, I don't use a formal contract. I'm just very clear on resort, arrival date, departure date, unit type/size, view where applicable, non refundable nature, deposit and final payment dates. In effect it's a contract because it's an offer, acceptance and payment but nothing formal as in a paper that's signed. Is there risk, absolutely but there is in any situation.

 

[ABE4DISNEY]

Gotcha--I misunderstood your definition of "formal."

 

[heapmaster]

What about your contracts stating what happens if the renter "Requests an upgrade"?

 

[Deb & Bill]

What about your contracts stating what happens if the renter "Requests an upgrade"?

They die and you get their house.

 

[Dean]

What about your contracts stating what happens if the renter "Requests an upgrade"?

That's between the resort and the renter. IF the resort pulls points, which shouldn't happen but has, DVC just has to put them back and deal with the individual since they did not have permission to do so from an authorized person.

 

[KAT4DISNEY]

As an FYI technically owners are supposed to have contracts with their renters. Nothing on what it needs to include as far as I recall but DVC wants there to be a rental contract.

 

[Frederic Civish]

I use a contract. I think it lets the renter know that I know what I am doing and have done this before, and it looks kind of professional (even though I am NOT a professional) so it increases the confidence of the renters.

I also specify what use year the points are in, and when they expire, not that the renters usually understand that.

AND, I specify that there are 100% NO REFUNDS, though I will try to change to a different date, IF the points are not expired and IF there is availability. However, I have not been following the no refund rule. I had about 8 renters scheduled, who have cancelled. These cancellations are for reservations that run anywhere from last March into the coming Summer. In one case I re-rented the reservation and gave all of the money to the renter. And in the other cases, I have happily refunded all the money. We are all in this together. It isn't anyone's fault. One of my renters was coming from New Zealand for a long stay, but couldn't get any flights. Others just had medical issues and were concerned about Coronavirus or about their kids getting coronavirus, or whatever. I have been to the parks multiple times now, during COVID, and on flights multiple times (not just to DW) and I honestly think that, up until now, the risk of Coronavirus coming from the parks, or even from plane flights is very low. I can find NO documented cases listed in news or medical reports ANYWHERE of anyone catching COVID on a plane, since June, or from any of the Florida parks since June (we also went to Universal)

Anyway, I am getting off the subject. Despite saying there were no refunds, EVERYONE cancelled with enough time that I was either able to move them into next year, OR bank their points, OR rent their points and reservations out again. AND, I ended up using hundreds of the poiints for my family trips (July, October and our coming January trip), so it wasn't a big loss for me to refund their money, and I think they have all been happy.

But the contract would have protected me if I had decided to be a hard a---.

 

[jmmess]

As an FYI technically owners are supposed to have contracts with their renters. Nothing on what it needs to include as far as I recall but DVC wants there to be a rental contract.

Just in case anyone is wondering about this...

"14.2.2 Compliance with Condominium Documents: All leasing or rental agreements relating to the use, occupancy and possession of any Unit or Vacation Home must be in writing and must set forth an acknowledgement and consent on the part of the lesee-sublessee-tenant to use, occupy and possess such Vacation Home in conformance and compliance with the provisions of the Master Declaration, Ground Lease and the Condominium Documents. If an Owner or Cotenant fails to secure a written lease or rental agreement, the Association has the right to require the lessee-sublesee-tenant, prior to the lessee-sublesee-tenant's use, or occupancy of possession of any Vacation Home, to execute an acknowledgement to use and occupy the rental or leased Vacation Home in conformance with the Master Declaration, Ground Lease and Condominium Documents."

 

[MeridaICR]

I have spent several hours reviewing the various rental contracts that are out there. I found that they have some common wording and requirements but then one would have something extra and then another would have another thing past that even. I decided to sit down and essentially combine all of them while making it a bit clearer and straight forward. I've attached it here. What are your thoughts? Is there anything that is missing? This is meant to be a comprehensive rental agreement.

Do you use the same contract if you are renting a reservation rather than points?

 

[MeridaICR]

I use a contract. I think it lets the renter know that I know what I am doing and have done this before, and it looks kind of professional (even though I am NOT a professional) so it increases the confidence of the renters.

I also specify what use year the points are in, and when they expire, not that the renters usually understand that.

AND, I specify that there are 100% NO REFUNDS, though I will try to change to a different date, IF the points are not expired and IF there is availability. However, I have not been following the no refund rule. I had about 8 renters scheduled, who have cancelled. These cancellations are for reservations that run anywhere from last March into the coming Summer. In one case I re-rented the reservation and gave all of the money to the renter. And in the other cases, I have happily refunded all the money. We are all in this together. It isn't anyone's fault. One of my renters was coming from New Zealand for a long stay, but couldn't get any flights. Others just had medical issues and were concerned about Coronavirus or about their kids getting coronavirus, or whatever. I have been to the parks multiple times now, during COVID, and on flights multiple times (not just to DW) and I honestly think that, up until now, the risk of Coronavirus coming from the parks, or even from plane flights is very low. I can find NO documented cases listed in news or medical reports ANYWHERE of anyone catching COVID on a plane, since June, or from any of the Florida parks since June (we also went to Universal)

Anyway, I am getting off the subject. Despite saying there were no refunds, EVERYONE cancelled with enough time that I was either able to move them into next year, OR bank their points, OR rent their points and reservations out again. AND, I ended up using hundreds of the poiints for my family trips (July, October and our coming January trip), so it wasn't a big loss for me to refund their money, and I think they have all been happy.

But the contract would have protected me if I had decided to be a hard a---.

Can you share your contract? Also do you use a different kind of contract if you are renting a reservation rather than points?

 

[DVCMAUREEN]

I have spent several hours reviewing the various rental contracts that are out there. I found that they have some common wording and requirements but then one would have something extra and then another would have another thing past that even. I decided to sit down and essentially combine all of them while making it a bit clearer and straight forward. I've attached it here. What are your thoughts? Is there anything that is missing? This is meant to be a comprehensive rental agreement.

Erin, thank you for this agreement. I added a line "RENTER will not attempt to contact DVC Member Services directly to modify the reservation" after the sentence "MEMBER will not modify RENTER’s reservation without first being directed to do so by the RENTER." So mine now reads "MEMBER will not modify RENTER’s reservation without first being directed to do so by the RENTER. RENTER will not attempt to contact DVC Member Services directly to modify the reservation."

 

[Sandisw]

Erin, thank you for this agreement. I added a line "RENTER will not attempt to contact DVC Member Services directly to modify the reservation" after the sentence "MEMBER will not modify RENTER’s reservation without first being directed to do so by the RENTER." So mine now reads "MEMBER will not modify RENTER’s reservation without first being directed to do so by the RENTER. RENTER will not attempt to contact DVC Member Services directly to modify the reservation."

If not included, add it about at check in at the resort. Since MS won’t talk to them, but the front desk will, it is more of a risk once they get there.

 

[wipedaler]

I use a contract.

Would you be willing to share the contract you use to rent points, please?

 

[Frederic Civish]

Would you be willing to share the contract you use to rent points, please?

I am always modifying it slightly. This contract is, perhaps, too complex. Certainly I have seen contracts that were much simpler, and possibly much better, but this covers the things that I thought were important. A Lawyer will probably tell you that this contract will NOT protect you from anything. BUT, Disney requires one with the renter, AND if the renter knows that he/she has already agreed to certain things, it is my belief that they are more likely to actually follow those things.

I will also say that I don't always enforce everything in the contract, in particular, the part about total loss of points if they cancel. Truthfully, when I rent them the points I specify the absolute last date they can be used (the end of my use year) and I will offer to try to change their reservation, if possible, within those parameters.

Also, in this age of COVID I had many many cancellations and reschedulings. I allowed people to freely cancel, if they did it with sufficient time, and then I either banked the points OR rented out the points OR rented the reservation to someone else. I actually ended up providing total refunds to 4 or 5 people, totally multiple thousands of dollars, and rescheduled several others. I also ended up using some of those points myself. My family took trips to DW in Feb 2020, July 2020, Oct 2020, Jan 2021 and March 2021 (I'm at DW right now). I have 4 memberships and over 1000 points, so we COULD use all of them, but usually we don't even come close. Anyway, I tried very hard to be fair to everyone. I hope they appreciated it.

OK. Here goes:
--------------
Hi XXXX, below is your reservation confirmation.

Please look it over and make sure everything - but especially the dates - are correct. Other things to check are your names, ages of children, the resort and room type and view. If there is any problem, let me know immediately.

Also go into your My Disney Experience account and make sure the Reservation Number is tied to your account and that everything looks okay.

I will also send you another email to follow this one. That following email will have your contract, both in the email, and attached. Take it, put your name in the bottom area where it says, 'Renter Name' and then send it back to me. Disney requires a contract.

Make sure the prices listed, and everything else, is correct on the contract. I calculated the cost based on $XX per point, but if I have made a mistake, please let me know.

* Venmo works well for me and here is my Venmo ID: XXXXXXXXXX
* If you choose to pay through PayPal, my PayPal ID is just my email address: XXXXXX@gmail.com.
* If you choose to send a check, then let me know, so I can keep an eye out for it. I get a ton of mail and I don't want it getting lost.
* If you need my address, it is listed in the Contract towards the bottom.

Please let me know if you have any questions.

Thanks.

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(Then I cut and paste their reservation confirmation number and information here.)
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Then in a following email I cut and and paste the full contract, below, into their note, AND, I also attach a copy of the contract to the email as an attachment in a Doc file. They can either open the Doc file, amend it with their names, and return it, OR just take the note I send them, put in their names and return the whole note. Either way works for me.

Full contract is below:
______________________________________
Contract to Rent DVC Points from (XXXX XXXXXX), the DVC Member

Thank you for renting from us. By Returning this contract to us, by Email, you are specifying that you agree with this contract. By submitting your payment, you are agreeing to all of the following terms and conditions:

• You will abide by all Disney Vacation Club terms, policies and rules applicable to Disney Vacation Club members and Disney Vacation Club membership.
• You will be responsible for any unpaid charges or damages to the unit rented, including all Disney Vacation Club property, contents, improvements, and any damage to general Disney property during your stay, including any damages from other people staying with you, whether or not those charges are assessed against the Member or his membership.
• You will repay any unpaid charges or damages to the unit within 10 business days of notice being sent to you.
• In the unlikely event that there are unpaid charges or damages to the unit, we will send a fax or e-mail copy of a Disney Vacation Club communication or other Walt Disney Company communication assessing the charges or damages, which shall satisfy notice to you.
• You agree that only the people listed on the reservation will stay with you. It might be possible to add other people to the reservation if the DVC Villa which is being reserved allows more tenants. If you need to modify the reservation, and change the people on it, then please contact us regarding this, so we can modify the reservation for you.
• This is an agreement to rent accommodations only, this does not include tickets, meals, transportation (except standard DIsney transportation and Magical Express), transfers or entertainment, unless otherwise noted.
• For any optional items, such as event tickets, or Disney Dining Plan, that you cannot pay directly to Disney, you agree that you will pay a 5% processing fee for us to take care of it for you.
• You understand there are no daily housekeeping services at Disney Vacation Club resorts, but only Trash and Towel service. Replacement towels will be available upon request. If your stay is for less than eight nights, Renter will receive Trash & Towel service on day four. If Renter's stay is for eight nights or longer in one unit, the Renter will 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. More frequent housekeeping is available for an additional fee payable directly to your resort.
• Disney World is Smoke-Free. No smoking is allowed in the rooms at Disney World. Smoking is also not allowed on the balconies. Smoking is only allowed in specific, designated areas.
• Pets, including comfort animals, are not permitted to stay at Disney Vacation Club Resorts, except for certified service animals as defined by the Americans with Disabilities Act.
• DVC Owner agrees that all DVC Membership and Maintenance fees that are required for your resort stay will be valid and will be properly maintained and paid by us, the owners, through your resort stay.
• All payment (100% of the agreed upon cost for the rental) is due immediately, by Personal Check, Cashier’s Check, or through PayPal, upon receipt of email confirmation with your Room Reservation number. You agree to pay any PayPal fees.
• Failure to pay 100% of the price of this reservation within 10 days of receipt of your confirmation will result in cancellation of your reservation.
• Your rented points will expire on XXXXXXXX (example, August 31st, 2022) if you have not used them by then. This is the end of my Use Year. There will be no refund for expired or unused points.
• This reservation is nonrefundable, if you need to change the dates of the vacation, this might possibly be accommodated under certain circumstances, depending on room availability to allow change of reservation. However, options are very limited and we make absolutely no promise that another satisfactory reservation will be available. Due to the fact that Disney Vacation Club units book out at a nearly 100% occupancy rate it is unlikely that any other reservations will be possible for you. If you are unable to keep your reservation, the points will Expire. Please contact us for more details. There will be no refunds provided for unused points and if you need additional points, you will need to rent them at the then current rate, if they are available. Please note that we will do our best to work with you if you have a problem, but our hands will be tied in most cases.

This contract is an agreement between XXX XXXX, the DVC Owner; and XXXX the Renter/Tennant who is renting the one time use of XXX DVC points to obtain a Reservation at XXXXX for a XXX bedroom XXX view villa unit for the period of XXXX through XXXX with check out on XXX.

This reservation requires XXX DVC Points which are being purchased at a cost of $XX per point for a total amount of $XXXX which is due and payable immediately.

Failure to use these points and the Reservation which is made with them will result in loss of these points. Failure to keep this Reservation will not result in replacement of these points.

DVC Member and Owner: XXXX XXXXX

XXXXXXX@gmail.com

Phone Number: XXX-XXX-XXXX

My Address: XXXXXXXXX

Renter Name: XXXX

Renter Address: XXXX

Renter Email:

Date of Contract: XXXX

Please return a copy of this contract, to us, by email, with your name typed into the appropriate place, above. This indicates your acceptance and understanding of this contract. Return of this contract by Email constitutes an Electronic Signature.

 

[bluecruiser]

Pssst @Frederic Civish, you left your email address in the body of your post (above the sample contract).