If resorts closed, will DVC rental companies and Hotwire refund your money?

[DisneyDar]

Our owner cancelled our reservation (check in today ) and according to the agency they will be re-renting those points out, so I can only assume they’re usable points, and once that is done we’ll get our money back.

We do have insurance, but are required to attempt to get money back through our agency first.

What does your rental contract, that you signed, say?

 

[DGsAtBLT]

What does your rental contract, that you signed, say?

Oops wrong thread. One sec.

What does it say about what aspect?

 

[Sandisw]

THIS situation is because Disney shut their resorts.

But the availability situation is complicated by the rental agencies don’t you think? Already competing with owners for WDW resorts who don’t own at the WDW such as VB or HH or Aulani. But now we’re competing with people who didn’t even put a dime down to being an owner. Yes I understand the owner who owns is renting the unit but the system was supposed to work with OWNERs who want to stay at Disney competing at various times. Not competing with owners who are trying to get non owners in to Christmas week. I just think it’s unfair to have rental agencies “hooking up” people and making a profit.

And can anyone define “ commercial renting”? I’ve always seen that but I don’t understand the term.

Actually, no, I don’t, Rentals are reservations booked by another owner who has the same right to that room as me, and pays the same costs yearly..MFs...for that privilege

It really doesn’t matter to me who sleeps in the room because whether it is the owner, a family member of the owner, or someone who paid the owner, the room was booked in accordance with the guidelines.

I bought DVC so I could have that flexibility to let lots of family to go, Any attempt to stop rentals, besides what is in place, would have a negative impact on that.

Commercial renting is defined as 20 or more reservation in a rolling 12 month period in the names of others on a membership. I believe the member website has information

 

[_auroraborealis_]

And can anyone define “ commercial renting”? I’ve always seen that but I don’t understand the term.

Disney define this as 20 or more reservations in 12 months by a single owner, in other people's names.

FWIW, agencies are NOT commercial renting. Agencies are like matchmakers: They are intermediary between an owner and a renter, but not making the booking or owning the points.

 

[jarestel]

The main problem with all of this as far as I see it is that renters want to pay the lowest amount possible but expect to receive maximum benefits and protections. I have nothing against renters but there is a reason why renting from DVC owners is significantly cheaper than renting from Disney.

 

[Minniesgal]

I am not choosing to only follow part of the contract. The contract I signed was for point rental for accommodations. At this point, I am no longer renting points as they are being returned to the owner due to the circumstances. And I do not have accommodations, neither are by any choice of my own. How is this not breach of contract? In an all sales are final situation the you have a product. Maybe it doesn’t work and you are left holding the bag but you have something. In this case David’s still has their share, the owner is getting their points back as well as what they have already received from David’s and I have nothing. I feel their is an argument I held up my end of the contract but the others did not.

In your situation you have rented a product which has become unusable due to no fault of the person who rented it to you. The product ie points no longer holds any value as they become unusable even if returned to the oner.

 

[Thumper99]

Disney define this as 20 or more reservations in 12 months by a single owner, in other people's names.

FWIW, agencies are NOT commercial renting. Agencies are like matchmakers: They are intermediary between an owner and a renter, but not making the booking or owning the points.

Thank you! I understand how it works as a Matchmaker. But they are getting a profit on those as aggregate correct, so I am wondering how they are not getting checked on this. Plus I understand that one of the rental agencies gives 1099 for rental income and the other does not. Doesn't that circumvent tax laws? I think technically they are in the law of the DVC though so maybe if DVC wanted to stop it they couldn't without changing something.

 

[MICKIMINI]

Thank you! I understand how it works as a Matchmaker. But they are getting a profit on those as aggregate correct, so I am wondering how they are not getting checked on this. Plus I understand that one of the rental agencies gives 1099 for rental income and the other does not. Doesn't that circumvent tax laws? I think technically they are in the law of the DVC though so maybe if DVC wanted to stop it they couldn't without changing something.

Not getting a 1099 does not absolve one from their tax liability. I didn't get a 1099 but paid taxes on the full amount for rentals. That is the law.

 

[DGsAtBLT]

The main problem with all of this as far as I see it is that renters want to pay the lowest amount possible but expect to receive maximum benefits and protections. I have nothing against renters but there is a reason why renting from DVC owners is significantly cheaper than renting from Disney.

I don’t think this is true. Renters (well informed renters at least, but that’s another debate) generally accept the downsides of rentals. Renters would have no leg to stand on getting upset they couldn’t cancel because of a change of plans, or move their reservation, that kind of thing. Maximum benefits and protections would be renters expecting the be able to cancel/change reservations with the freedom Disney allows you to with a cash reservation, being able to cancel if personal circumstances did not allow them to take a trip, etc. This situation, where the resorts are not even open, is way beyond that IMO.

Hindsight is 20/20. Renters and owners alike wouldn’t have had a long term resort closures cross their mind as a real risk of renting points or renting out their points.

 

[cbyrne1174]

Owners are the one with the long term financial obligation. They shouldn't be the one that has to take the financial hit. When you are renting from an owner, you are getting a reduced rate at the expense of losing flexibility. Being able to cancel/modify your accommodations clearly has its own worth, which is why renting from Disney is substantially more expensive. When you chose to rent from an owner instead, you are paying a lower rate at the expense of losing flexibility. I'm personally going to be out $2,400 dollars if I can't rent out my two Bonnet Creek weeks this year from this pandemic.

I have one that sold already and I will allow the renter to change their dates, but there's no way I will give them a refund because I am a person with my own financial crisis from this pandemic, not a company. My family is going to have to live off my teacher's salary this year, which is only $1,000 above poverty line. That means my daughter and my husband wont have any health insurance this year because that's how crappy teacher benefits are and I make $1000 too much this year to qualify for Medicaid for them. Also, I will owe more than $1,000 in tax penalties for not having insurance for them, making it even worse off than if I just made $1,000 less a year.

 

[jarestel]

This situation, where the resorts are not even open, is way beyond that IMO.

I can understand and sympathize but this is not anyone's fault so expecting rental companies and owners to make the renters whole is not reasonable. Owners may decide to do what they can to help their renters and that's a good thing, but ultimately the risk is on the renter as stated in the signed contract. And at the end of the day, reinforcing this risk is beneficial to potential future renters so they are aware that the low price comes with some risk.

 

[DGsAtBLT]

I can understand and sympathize but this is not anyone's fault so expecting rental companies and owners to make the renters whole is not reasonable. Owners may decide to do what they can to help their renters and that's a good thing, but ultimately the risk is on the renter as stated in the signed contract. And at the end of the day, reinforcing this risk is beneficial to potential future renters so they are aware that the low price comes with some risk.

I don't necessarily disagree with you that it's unreasonable to expect owners make renters whole, especially without considering each individual circumstance.

I'm just disagreeing with your initial comment, I don't think renters wanting to be worked with in this particular scenario is wanting maximum protections and benefits that booking a cash reservation would give them. This goes way beyond the normal risks of renting. Hindsight is 20/20. Nobody would have brought up lengthy resort wide closures as a reason renting is cheaper than going through Disney.

 

[Mainsail Minnie]

[

Guys, we are getting way off track. Debates on the ethics of renting do not belong on this board, and arguing and name-calling don't belong anywhere.

Let's please get back to sharing useful information:

Have you heard from your rental agency and gotten information on how cancellations are being handled? Please share it here.

I'm the OP. I started this thread to ask for help for two situations, but it's become primarily a bashing thread with no constructive info being shared. Could we possibly close this thread?

 

[DGsAtBLT]

[

I'm the OP. I started this thread to ask for help for two situations, but it's become primarily a bashing thread with no constructive info being shared. Could we possibly close this thread?

There's not really a straight answer for you, hence the debates.

We have a reservation with Davids and the owner appears to have usable points, as Davids finally got back to us and has let us know we will get a refund when (if) they can rebook for someone else. Some owners will not have that ability (or willingness to do so, I suppose) which complicates it. So from my experience and other experiences that I've read, DVC rental companies and individual owners are overall trying to reach some sort of solution, but nothing that can be applied across the board. I can't speak for what companies like Hotwire are doing.

 

[purplenancy27]

if they lose their points or can’t use their points (because availability is pretty slim due to the mass amounts of rentals by non owners) t

Are you actually blaming renters for the inventory?
Are you referring to the mass amount of points that are rented out by owners? So many are blaming the renters but both sides have benefited from these transactions.

 

[DGsAtBLT]

Are you actually blaming renters for the inventory?
Are you referring to the mass amount of points that are rented out by owners? So many are blaming the renters but both sides have benefited from these transactions.

Some owners blame other owners renting out their points (so by extension the renters) for the lack of (or part of the lack of) availability, particularly studios. I don't know that it's the whole story but it makes sense that it plays a part in availability issues.

I agree with you though, the transactions are mutually beneficial. There's a weird vibe from some that owners are doing renters a favour. The rental market wouldn't exist if we didn't all get something out of it.

 

[purplenancy27]

Maybe everyone should take a minute and breathe.
I know if my trip goes as planned in November it will be the last time we stay on property. There are so many more options in the area. DVC is not the only option. And there are many hotels that allow cancellation 3 and 1 day before checkin.

 

[kaytieeldr]

..

 

[toontoy]

after reading through this thread its very interesting to see the different viewpoints. Looking at the sample contract the renter does have the ability to cancel the contract and receive a refund once Disney cancels the confirmed reservation. The reservation no longer being valid in effect nullifies the contract.

 

[Thumper99]

Actually, no, I don’t, Rentals are reservations booked by another owner who has the same right to that room as me, and pays the same costs yearly..MFs...for that privilege

It really doesn’t matter to me who sleeps in the room because whether it is the owner, a family member of the owner, or someone who paid the owner, the room was booked in accordance with the guidelines.

I bought DVC so I could have that flexibility to let lots of family to go, Any attempt to stop rentals, besides what is in place, would have a negative impact on that.

Commercial renting is defined as 20 or more reservation in a rolling 12 month period in the names of others on a membership. I believe the member website has information

you are good to rent out and gift to your family and friends but having a agency facilitate that with strangers and make a profit off that is a business. Just an opinion.