Does David's tell you if the renter cancels?

[DGsAtBLT]

Interesting. What if renters don't have the funds to hand? It may have been months ago they received the initial funds...

My owner would have gotten our funds in July or August depending how quickly David’s pays out, I don’t know. I wonder this too. Long stay and 2 rooms too.

Insurance claims are muddied, at least for mine, if David’s is not holding firm on no refunds.

 

[meryll83]

My owner would have gotten our funds in July or August depending how quickly David’s pays out, I don’t know. I wonder this too. Long stay and 2 rooms too.

Insurance claims are muddied, at least for mine, if David’s is not holding firm on no refunds.

That's true.
I'm currently renting at the Grand Californian, mid April, and have been waiting to see if (more likely when!) Disney extend their resort closures beyond the end of March...

 

[Yinn]

Interesting. What if renters don't have the funds to hand? It may have been months ago they received the initial funds...

I'd imagine David's would have to handle that. If they received funds via Papal, then that can be utilized as well. It's just collections at that point. But as I pointed out in a previous post; the owner is not able to satisfy the contract in this case and is contractually obligated to refund. I'm sure there will be some hiccups.

My owner would have gotten our funds in July or August depending how quickly David’s pays out, I don’t know. I wonder this too. Long stay and 2 rooms too.

David's pays out almost immediately after the agreement.

So as of now, if you're a renter. Stay put. It seems if you initiate the cancel, then you may be out of luck. If you sit tight and it closes, you would be taken care of by this refund.

Disney also issued a memo to DVC owners.

"In the meantime, all points banking rules remain in place. While we understand the banking policy might create some frustration, please realize that this is in place to ensure that the membership as a whole avoids future inventory constraints"

So at this point it looks like people with close UY will be holding the bag if you rented out.

 

[meryll83]

Okie doke, will continue to sit tight for now and see if we get some more communication regarding eligibility for refunds, versus the current stance we've had so far...

Thanks everyone for sharing what you're aware of so far!

 

[Deb & Bill]

...So at this point it looks like people with close UY will be holding the bag if you rented out.

Or the owners will tell David to shove it.

 

[purplenancy27]

Intresting, wonder how many owners are going to cry “no refunds”?
If resorts are closed that is breach and contract stating no refunds would be void.They would not be delivering what was promised to renter. Why would renters insurance pay if contract isnt being honored.
Do owners have some sort of contract with Davids? May have some fine print.

 

[DGsAtBLT]

Well, renting was fun while it lasted.

 

[Yinn]

Or the owners will tell David to shove it.

Possible, but it is in the owners contract and they wouldn't be able to provide a hotel if it's closed. It then becomes a legal battle..

Intresting, wonder how many owners are going to cry “no refunds”?
If resorts are closed that is breach and contract stating no refunds would be void.They would not be delivering what was promised to renter. Why would renters insurance pay if contract isnt being honored.
Do owners have some sort of contract with Davids? May have some fine print.

Yes we have a contract. And I certainly am going to cry about it, but not to the renter.

The contract I signed makes me obligated to refund. I don't expect to refund a renter who cancels, so I can't expect myself to cry when I can't provide the agreed service. BUT, my true annoyance is on Disney's policy on my points usage. I would have banked the points if I had not used them. I certainly would NOT have borrowed points if I didn't need to make a reservation. So their recent email saying the policy hasn't changed for those is the only annoying factor. I don't expect them to globally extend all points banking and borrowing, but I would expect it for the days they are closed and unable to provide me with the service.

At this point I'm looking at paying the renter back, plus I will most likely lose my points. And for that, I will cry.

 

[Marionnette]

Or the owners will tell David to shove it.

I think it’s going to leave owners with a bad taste in their mouths about David’s. Owners are likely to avoid dealing with them if they feel that David’s doesn’t have their backs. The renters are being made whole at the owners’ expense. David’s is only out their administrative costs, which will be partially covered by the interest they collected on the 30% that they withheld from owners after securing the reservation. Owners get screwed.

 

[bobbiwoz]

Our renters departed over the weekend. We kept our rental money apart from our money, to have it, just in case. We and our renters are among the lucky ones, our rental went through.

However, we had the money to return if needed.

 

[Maddiesmum03]

Interesting. I have not had an email from David's. It's probably because the renters are due to check in today and check out on Friday so the resort closure would not affect this booking. I do have another booking in April though, but lets just say they would have to wait a while for me to be able to refund any money simply because I do not have it. In fact, if I do not get the 30% on the booking due today, I will find finances hard until the end of the month....I have been depending on this money and figured it into my expenditure this month. I am happy to re use the points for this booking to reschedule and same is true with the April booking. If I have to find the money to pay back the April renter, then the only way would be to re rent the points DVC put back into my account.

 

[CraigInPA]

David's just sent out an email to owners and told them to refund.

"Disney has announced that resorts will be closed as of March 20th.

Renter Refunds: If this affects your renter, you should be preparing at this time to return renter funds for affected renters, as disney can no longer honor dates you contracted and promised renters

If you have a renter in this period, please contact us asap to determine what amount is due. "

A little further down...

"As of right now this only affects March dates, however, we have very little doubt that Disney will extend this to April eventually so April DVC owners should alspoprepare as of this time."

I wondered when this would happen, so I looked at my "intermediary agreement" with David's from 2017. In that, there is a requirement that I book the room and provide the booking confirmation number, and not cancel the booking without David's contacting me. No where is there a requirement to issue a refund if the resort is unavailable. The agreement between David's and myself was "no refunds", just like the agreement between David's and the renter. Perhaps he has a better contract now, but the 2017 agreement leaves the owner losing the 30% check-in payment only.

What has occurred is what is considered a Force Majeure event, where the fault in fulfilling the contract is the result of a third party's action. Had I rented my points to someone, I'd offer to try to work with them on alternative dates (even though that is not permitted in the contract). If I couldn't work out a new date with the original renter, I'd go back to David's and tell them that they now have those points to use by the date that they expire. I would not consider refunding David's anything, since the agreement I have with David's is NO REFUNDS.

 

[Yinn]

I think it’s going to leave owners with a bad taste in their mouths about David’s. Owners are likely to avoid dealing with them if they feel that David’s doesn’t have their backs. The renters are being made whole at the owners’ expense. David’s is only out their administrative costs, which will be partially covered by the interest they collected on the 30% that they withheld from owners after securing the reservation. Owners get screwed.

As an owner, this 100%. I know contractually this is what we signed up for, but it's the combo of things that makes it sting. I know I will not be renting out anything past my banking in the future at a minimum. I also now need to decide if the $14.50/point of rental is worth losing points over in the future or if I'm better of spending it on spoiling ourselves in a 3 BR somewhere.

I wondered when this would happen, so I looked at my "intermediary agreement" with David's from 2017. In that, there is a requirement that I book the room and provide the booking confirmation number, and not cancel the booking without David's contacting me. No where is there a requirement to issue a refund if the resort is unavailable. The agreement between David's and myself was "no refunds", just like the agreement between David's and the renter. Perhaps he has a better contract now, but the 2017 agreement leaves the owner losing the 30% check-in payment only.

What has occurred is what is considered a Force Majeure event, where the fault in fulfilling the contract is the result of a third party's action. Had I rented my points to someone, I'd offer to try to work with them on alternative dates (even though that is not permitted in the contract). If I couldn't work out a new date with the original renter, I'd go back to David's and tell them that they now have those points to use by the date that they expire. I would not consider refunding David's anything, since the agreement I have with David's is NO REFUNDS.

I'm a recent, so I don't know what the 2017 agreement says. But when I rented out, I received a rental agreement between my renter and myself. 4 paragraphs from the end of the email agreement /reservation summary it states "should accommodations not be available.."

 

[Ngregory]

First time renter here. We rented from DVC Rental Store and we're supposed to check in April 26. I'm really scared about losing my thousands of dollars from the AKL reservation and the dining plan. I feel like if owners are getting their points back, then they should refund the renter. I'd absolutely love to reschedule, but I don't see a time that would work for us within the coming year. I'm sick to my stomach over this. If resorts are still closed by the time of check in, how likely do you think it'll be to get my money back?

 

[GoingSince1990]

Any renter who paid David’s by credit card and who does not get a refund should be able to file a dispute (chargeback) if the accommodations they paid for are not supplied.

 

[Maddiesmum03]

Mine says (from June 2018 when I signed the contract for these bookings) "Should accommodations not be available on date of arrival due to an action or omission by the Owner"
It is clearly not my fault the accomodation is not available, I've made the reservation and I've paid my dues! So I am not sure David's can demand payment back, as CraigInPA says, David's can use my points (for however long they are valid: borrowed from Aug 2020 use year so who knows) to make other bookings and make things right with the original renters.

 

[DGsAtBLT]

People were very quick to point out to renters, and were before resorts closed, the risks we took on. Not to say it is not upsetting and frustrating, but this is unprecedented and nothing anybody could have predicted. It sucks all around.

I do think the rental industry and especially the brokers will come out of this damaged. At the end of the day owners can use future points instead of renting, renters can book through Disney, but brokers may be in major trouble.

 

[GoingSince1990]

First time renter here. We rented from DVC Rental Store and we're supposed to check in April 26. I'm really scared about losing my thousands of dollars from the AKL reservation and the dining plan. I feel like if owners are getting their points back, then they should refund the renter. I'd absolutely love to reschedule, but I don't see a time that would work for us within the coming year. I'm sick to my stomach over this. If resorts are still closed by the time of check in, how likely do you think it'll be to get my money back?

Hang tight for now. A slight chance WDW will have reopened by then. If closure is announced for your dates, ask for a refund, and if one is not forthcoming, file a dispute on your credit card if that was your payment method. Do NOT pro-actively ask to cancel yourself. Save all correspondence as you may need to supply copies for the credit card chargeback.

 

[Ngregory]

My plan is to hang on until it is evident that it'll go one way or the other. I'm just not sure if I should try to cancel dining at the 30 day mark to try to get that money back since it has no effect on the member there should be an issue there, right? No owner or broker is making money off of my dining plan so they shouldn't be stingy about canceling it and getting that money back to us... right?

 

[purplenancy27]

There will be a new way of doing business when this clears. I am still hopeful that some way Disney will find a way to make this situation better for owners. And this is likely a once in our lifetime event.
I am sure contracts will change.