Member wants 100% down payment for a reservation 8 months out- is this correct?

[cat]

Hi all,

I am renting points from this woman who is insisting on 100% payment up front for a room reservation in December...I even had requested a contract in hopes she would accept a deposit but she says she needs a full payment since her points are held. What does this mean? I feel uneasy about paying $650 so should I just look elsewhere? I thought the norm was to pay a deposit and then the remaining balance 2 months before the reservation...

[carolina_yankee]

Originally Posted by cat

Hi all,

I am renting points from this woman who is insisting on 100% payment up front for a room reservation in December...I even had requested a contract in hopes she would accept a deposit but she says she needs a full payment since her points are held. What does this mean? I feel uneasy about paying $650 so should I just look elsewhere? I thought the norm was to pay a deposit and then the remaining balance 2 months before the reservation...

Everybody has their own system. I believe the points brokers here require a deposit to check availability and payment in full upon booking. And they charge the highest rate.

When I've rented from others, I've paid 50% on booking with balance to follow in one month.

Given all of the vagaries around expiration of points, risk of canceling, and time to re-rent should someone cancel or not pay, the safest way for an owner to rent is to receive payment in full and be done with it.

Another common thread is that reservations are final. If the renter decides to not go through with the vacation, they eat the cost, not the owner. This isn't the practice of every owner, but the vast majority of owners aren't in this as a business but to earn a little on points they can't use or rent excess points to cover member fees, etc.

All that said, if you are ever uncomfortable with the details of a transaction, definitely look for a different owner with terms you are comfortable with. Just be aware that you might be seeking something that isn't the norm, and will thus be harder to find.

Dirk

[wdwmom]

We have rented out points twice and have asked for payment in full as soon as the ressie was made. No downpayment. I think both times the transaction only took 4-5 days from start to finish. I wouldn't want to wait for my money either. I don't think they are unreasonable.

[cat]

Thanks for your reply.

What does it mean if her points are in holding? I looked it up and it said points can be used if the reservation is booked 60 or fewer days before the new check-in date. But she reserved her home resort and sent me a confirmation letter so I am not sure what she meant.

[salmoneous]

DVC's cancellation rules are usually pretty generous. But there situations where a member has to use their points by a certain date. If the owner is paranoid (not that there is anything wrong with that) about the renter dropping out, they can insist on 100% up front. Yes, the norm is "50% now, 50% 60-90 days out." But this isn't a crazy request.

Renting DVC points requires trust. If something doesn't feel right, walk away and find another owner. But keep in mind that December reservations are hard to get. You often will have to book more than 7 months out and find an owner who owns at the resort you want. Expect to pay a bit more, or put up with more onerous than normal terms for a December reservation.

[salmoneous]

Originally Posted by cat

What does it mean if her points are in holding? I looked it up and it said points can be used if the reservation is booked 60 or fewer days before the new check-in date. But she reserved her home resort and sent me a confirmation letter so I am not sure what she meant.

"Holding Points" has a technical definition.... but it would be impossible to have a December reservation using holding points.

It's possible that the points are technically banked or borrowed and they are using non-technical language... or that the owner is clumsily trying to explain to you why they need 100% up front. I.E. The reservation isn't made with holding points, but if you cancel they will become holding points.

[mybabesuz]

Originally Posted by cat

Thanks for your reply.

What does it mean if her points are in holding? I looked it up and it said points can be used if the reservation is booked 60 or fewer days before the new check-in date. But she reserved her home resort and sent me a confirmation letter so I am not sure what she meant.

If her points were in holding status she would not be able to make the reservation.
She probably just meant that her points would be tied up by your reservation.
I think a lot of renters ask for payment in full these days.
If you aren't comfortable please don't do it. Always follow your gut instinct.

[Goofygrl]

Originally Posted by mybabesuz

If her points were in holding status she would not be able to make the reservation.
She probably just meant that her points would be tied up by your reservation.
I think a lot of renters ask for payment in full these days.
If you aren't comfortable please don't do it. Always follow your gut instinct.

Agreed.

When I rent I'll offer to make the reservation with a deposit but full payment must be made shortly afterwards. If I feel comfortable with the reservation and am not having to borrow points then I may make the reservation without payment but 100% payment will be due upon confirmation of the reservation. The main reason for me is that it ties up my points.

[cat]

Okay, this is what she wrote, it makes more sense now:

"When i posted, i mentioned that the points are good until the end of february 2013 which are part of my points for 2012. my year starts march 1. By saying that my points are being held, i meant that they're of no use for me as of the moment since they're tied up to the reservation. We as DVC members are bound to banking and borrowing rules,which are both time bound. Thats why im doing this early on during my use year so as to give both myself and the other person who im renting out the points to, adequate time. If you decide to cancel" late", my points will be placed in a holding account and not bankable for the following year. I saw this happen to some people and then try to rent them out for a lower price instead of just losing them. Ive been renting out my points for 3 years and never had a problem(references available) and got the payment as soon as getting the reservation confirmation. And i believed i made myself clear when we spoke on the phone. In fact there are 2 other reservations that i made with the rest of my points,before and after yours, and already got my payment through paypal(which charges me 3%). If I cancel your reservation in the future without your consent, i might have problems with DVC as well as the boards,whereas if you cancel on me with just the possibility of losing your 10%-I dont think its much of a fair deal. Please let me know what you want to do as soon as possible. Thanks"

I think I am going to cancel. I understand what she is saying but unfortunately I do not want to commit 100% of my money to her. I will just check back in on the rent/trade boards later in a few months or place my bets on any special offers Disney releases in the fall.

[jjjeffr]

Originally Posted by cat

Okay, this is what she wrote, it makes more sense now:

"When i posted, i mentioned that the points are good until the end of february 2013 which are part of my points for 2012. my year starts march 1. By saying that my points are being held, i meant that they're of no use for me as of the moment since they're tied up to the reservation. We as DVC members are bound to banking and borrowing rules,which are both time bound. Thats why im doing this early on during my use year so as to give both myself and the other person who im renting out the points to, adequate time. If you decide to cancel" late", my points will be placed in a holding account and not bankable for the following year. I saw this happen to some people and then try to rent them out for a lower price instead of just losing them. Ive been renting out my points for 3 years and never had a problem(references available) and got the payment as soon as getting the reservation confirmation. And i believed i made myself clear when we spoke on the phone. In fact there are 2 other reservations that i made with the rest of my points,before and after yours, and already got my payment through paypal(which charges me 3%). If I cancel your reservation in the future without your consent, i might have problems with DVC as well as the boards,whereas if you cancel on me with just the possibility of losing your 10%-I dont think its much of a fair deal. Please let me know what you want to do as soon as possible. Thanks"

I think I am going to cancel. I understand what she is saying but unfortunately I do not want to commit 100% of my money to her. I will just check back in on the rent/trade boards later in a few months or place my bets on any special offers Disney releases in the fall.

Her conditions do not seem unreasonable to me. If she has a Feb use year and you are requesting a December reservation. If you cancel within 4 months of February, she can no longer bank her points. Worse yet, if you cancel within 30 days of the reservation, the points would have to be used for a booking no more than 60 days out. I guess I am on the owner's side on this one.