Davids DVC: Rental reimbursement or rescheduling?

[Bearval]

Not after this debacle. I used to be in that crowd, but never again.

What you may see are owners that constantly have too many points ever year downsize what they own or try and rent the points themselves. Also people who have been renters every year or every other year buy some resale contracts. I really can' t see an owner willing to rent points thru an intermediary for very little above MFs especially with that new contract.

 

[YourEveryDayAdam]

There will always be owners who don't want to do any work and just want to give their points to someone to rent. Likewise, there will always people who want to rent points to save money, but fear dealing with an individual owner or don't want to do the work to find someone to rent from.

This leaves the door open for brokers if they can keep the price attractive enough, and market forces will eventually do that.

Not after this debacle. I used to be in that crowd, but never again.

A lot of that is going to depend on how the market adjusts. Obviously, renters and owners are going to demand more protection on both sides. This is exactly where a broker can come in and make some good money. It is very likely going to require a travel insurance element of some sort in order to be able to properly protect everyone.

If they were to add an insurance element to broker rentals for DVC then that is going to make costs go up for renters, the amounts paid to owners go down, the amount of money that brokers get to keep go down, or some combination of all 3. TBH, there is likely some room for David's to reduce his take and pay an insurance company to cover all parties involved in case things go sideways.

Owners get $15.50 per point, while David's collects $20.00 per point. That's $4.50 gross profit for David's. 22.5%. On a single week-long reservation for a BLT studio, that's a gross profit of $525!! On top of that, he get's to keep 30% of the money he would normally pay to an owner in an interest bearing account and earn interest on the remaining $500+ for probably an average of 6-7 months. David's very likely could pay $115 (5%) per reservation to an insurance company, still make a TON of money and give everyone involved FULL protection of their funds.

 

[starry_solo]

A lot of that is going to depend on how the market adjusts. Obviously, renters and owners are going to demand more protection on both sides. This is exactly where a broker can come in and make some good money. It is very likely going to require a travel insurance element of some sort in order to be able to properly protect everyone.

If they were to add an insurance element to broker rentals for DVC then that is going to make costs go up for renters, the amounts paid to owners go down, the amount of money that brokers get to keep go down, or some combination of all 3. TBH, there is likely some room for David's to reduce his take and pay an insurance company to cover all parties involved in case things go sideways.

Owners get $15.50 per point, while David's collects $20.00 per point. That's $4.50 gross profit for David's. 22.5%. On a single week-long reservation for a BLT studio, that's a gross profit of $525!! On top of that, he get's to keep 30% of the money he would normally pay to an owner in an interest bearing account and earn interest on the remaining $500+ for probably an average of 6-7 months. David's very likely could pay $115 (5%) per reservation to an insurance company, still make a TON of money and give everyone involved FULL protection of their funds.

I doubt an insurance company would insure that type of transaction.

 

[Debbie Jean]

I doubt an insurance company would insure that type of transaction.

I agree. People who bought “cancel for any reason” insurance have posted they have not been covered for pandemic losses. Certainly moving forward, this will be a specified exclusion.

Many people got burned and frankly, some of the DIS threads which are there for all to read will, I expect, dissuade renters or at the very least induce them to look for much larger point discounts. They may find the pricing with incentives Disney offers to be much more reliable and worth what I suspect will be not that much more than on the rental market.

 

[Deb & Bill]

A lot of that is going to depend on how the market adjusts. Obviously, renters and owners are going to demand more protection on both sides. This is exactly where a broker can come in and make some good money. It is very likely going to require a travel insurance element of some sort in order to be able to properly protect everyone.

If they were to add an insurance element to broker rentals for DVC then that is going to make costs go up for renters, the amounts paid to owners go down, the amount of money that brokers get to keep go down, or some combination of all 3. TBH, there is likely some room for David's to reduce his take and pay an insurance company to cover all parties involved in case things go sideways.

Owners get $15.50 per point, while David's collects $20.00 per point. That's $4.50 gross profit for David's. 22.5%. On a single week-long reservation for a BLT studio, that's a gross profit of $525!! On top of that, he get's to keep 30% of the money he would normally pay to an owner in an interest bearing account and earn interest on the remaining $500+ for probably an average of 6-7 months. David's very likely could pay $115 (5%) per reservation to an insurance company, still make a TON of money and give everyone involved FULL protection of their funds.

With Disney offering direct booking discounts, $20 a point might be hard to get.

 

[suebeelin]

With Disney offering direct booking discounts, $20 a point might be hard to get.

Is DIsney even taking new reservations right now?

 

[starry_solo]

Is DIsney even taking new reservations right now?

For 2021, yes.

 

[Sandisw]

For 2021, yes.

They are for 2020 as well. You just can’t book at resorts not yet open.

 

[RachStu]

We've just had a trip that I booked for David's cancelled. It's a small booking (less than 150 points) and the renter is based in South Korea so couldn't have travelled anyway at present. I am assuming that despite the terms of the contract David's is going to ask whether i'm willing to refund the 70% that i've been paid. I've now missed my 31 July banking window for these points although I'm hoping MS will bank them for me given the resort is closed.

 

[Dean Marino]

We've just had a trip that I booked for David's cancelled. It's a small booking (less than 150 points) and the renter is based in South Korea so couldn't have travelled anyway at present. I am assuming that despite the terms of the contract David's is going to ask whether i'm willing to refund the 70% that i've been paid. I've now missed my 31 July banking window for these points although I'm hoping MS will bank them for me given the resort is closed.

Wellllll - it's sort of stuff like this that prompted Sandy & I to avoid renting, and just DONATE points to a wonderful family within WDW driving distance. In normal times? Renting is fine. Right now? We just did not think it would be good for us (Renters), or others (Recipients) .

 

[RachStu]

Wellllll - it's sort of stuff like this that prompted Sandy & I to avoid renting, and just DONATE points to a wonderful family within WDW driving distance. In normal times? Renting is fine. Right now? We just did not think it would be good for us (Renters), or others (Recipients) .

All of my rentals were entered into pre-COVID back in Jan / Feb this year. There are no winners in the present circumstances.

 

[starry_solo]

We've just had a trip that I booked for David's cancelled. It's a small booking (less than 150 points) and the renter is based in South Korea so couldn't have travelled anyway at present. I am assuming that despite the terms of the contract David's is going to ask whether i'm willing to refund the 70% that i've been paid. I've now missed my 31 July banking window for these points although I'm hoping MS will bank them for me given the resort is closed.

Is it Aulani? I would think DVC would be willing to make special accommodations for Aulani and VGC, given that those two resorts are still closed.

 

[New Mouse]

Is it Aulani? I would think DVC would be willing to make special accommodations for Aulani and VGC, given that those two resorts are still closed.

Has anyone had updates on these situations? Im coming up on a situation with dec use year in October at VGC and havent a clue what to expect from DVC.

 

[RachStu]

Is it Aulani? I would think DVC would be willing to make special accommodations for Aulani and VGC, given that those two resorts are still closed.

Yes, Aulani for an August stay with a Dec UY. The current published policy only extends points for a year due to closure up to an October UY. I’ve emailed MS.

 

[jamnich314]

Forgive me if I missed it after skimming the last few months of posts but, as a renter through David's, I have a reservation in mid-September that we are NOT using. They are trying to re-rent but I'm not optimistic. At this point I'm (mostly) at peace with losing the money but what course of action should we take? Do we simply not show up and Disney forfeits our reservation? If we cancel does that help the owner out in any way?

 

[YourEveryDayAdam]

Forgive me if I missed it after skimming the last few months of posts but, as a renter through David's, I have a reservation in mid-September that we are NOT using. They are trying to re-rent but I'm not optimistic. At this point I'm (mostly) at peace with losing the money but what course of action should we take? Do we simply not show up and Disney forfeits our reservation? If we cancel does that help the owner out in any way?

If you're 100% certain that you aren't going, then yes it can probably help the owner out. They can get the points back by cancelling with Disney and then either use them themselves or find another renter. If that's the course of action you wish to take, you should do that soon as there is a 30 day window with which the owner can cancel.

 

[Debbie Jean]

If you're 100% certain that you aren't going, then yes it can probably help the owner out. They can get the points back by cancelling with Disney and then either use them themselves or find another renter. If that's the course of action you wish to take, you should do that soon as there is a 30 day window with which the owner can cancel.

In which case the owner should return the money already received. No reason they should be enriched by your misfortune.

And yes, I realize the money will not go to the renter but to David’s. Still the money should be returned

 

[CraigInPA]

If you're 100% certain that you aren't going, then yes it can probably help the owner out. They can get the points back by cancelling with Disney and then either use them themselves or find another renter. If that's the course of action you wish to take, you should do that soon as there is a 30 day window with which the owner can cancel.

Although, if the owner cancels or changes the reservation, the owner becomes liable for a refund to David's. And, depending upon the use year and expiration of the points, it may be impossible to use those points. So, don't expect an owner to cancel the reservation.

 

[RachStu]

Has anyone had updates on these situations? Im coming up on a situation with dec use year in October at VGC and havent a clue what to expect from DVC.

I spoke to a cast member on chat and they said they are unable to make an exception and bank my points from the cancelled (by Disney) Aulani trip. I should have banked 11 days ago. If they had cancelled the trip 8 days earlier than they did then I would have been able to bank the points myself. Am currently on hold to speak to someone in member services about it. This should have been capable of being resolved by the person on chat.

 

[jamnich314]

If you're 100% certain that you aren't going, then yes it can probably help the owner out. They can get the points back by cancelling with Disney and then either use them themselves or find another renter. If that's the course of action you wish to take, you should do that soon as there is a 30 day window with which the owner can cancel.

I emailed them asking about it. They said due to complexity of banking and borrowing points that cancellations are not permitted per their all sales final policy.