For clarity of the descriptions in this FAQ
Renter refers to the person who OWNS the points and is renting out the reservation
Rentee refers to the person that is getting the points and paying for the reservation
From an owner perspective, renting points is when you offer your points up in order to make a reservation for another individual. While the nomenclature for this is usually referred to as "Renting Points" the truth is that you are offering up your points to make a reservation for another individual. The rentee does NOT have to be a DVC member in order to rent their points, it works in a very similar way to if you were booking a room for a friend - simply putting another persons name on a reservation. Then the rentee would pay you for the number of points you used to make that reservation.
Many DVC members use this when they have more points than they need in a given use year. Typically you can get more for your points than what they cost you in maintenace fees.
Really there's three ways that it can be done.
1) Rent points to friends/family. Assuming you trust the people you are renting to, this can be done without any sort of contract and you can make arrangement for any price you want for the points, even giving the points to the person. However, don't forget that all rules apply to the reservation the same as if you were on it. So if for example your friends cancel out last minute - those points will still go into holding, or possibly will be trapped in their use year. So make sure to set ground rules before you do this.
2) Rent through a broker. There are several services out there that will work as a go between for people that want to rent out their points. (For fairness we will not single any of them out here, but some are better than others.) Typically you offer them your points to rent out and they will pay you a fair rate for those points. When they find a rentee, they will pay you 50% up front and require you to make a reservation in the rentees name. Then around the time the reservation comes up, you will get the other 50%. Using a broker means that you make slightly less money as they take typically a $2-$3 per point fee for their service. However, it is a more secure system for the renter and the rentee so ensure that both sides get treated fairly.
3) Rent points directly to strangers. There are message boards out there that allow you to find folks that are looking to rent points. The advantage of this is that you do not use a broker and so can typically get $1-2 more dollars per point this way. The disadvantage is there a greater risk to both the renter and rentee. A renter can book a reservation for a rentee, and potentially they could not send you the money in a timely manner. As a rentee the risk is even greater as you are relying on the word of the renter, who has control of the reservation reservation. In the situation of direct rental, it is wisest to provide (a) references to the rentee and (b) some sort of contract document that is signed by both renter and rentee.
Yes, the renter should provide the reservation number to the rentee. They can then add the reservation to their MDE account, which should show all the guests.
No, only the original renter can make changes such as the dates, members of party, and room requests. Renter will have to agree with Rentee on any changes to be made.
The renter can add one of the Disney Dining Plans and Magical Express to the reservation for a rentee - the rentee cannot do this themself.
Typically, cancelations are not allowed through brokers - but for individual renters you can potentially negotiate this. The rentee needs to realize this does not work the same as a cash reservation.
Yes there is - renting out a reservation is considered income, and needs to be declared on your income. Realize also that how much you paid in maintenance fees for your points is considered expenses, so you should only pay taxes on the difference between the two. (We here at DVCHelp do not consider ourselves tax experts, so we recommend doing your own research on how to go about this as well.)
So a point transfer is a direct transfer of points between two members accounts. In addition, if you own multiple accounts you can transfer points between two accounts by the same owner. Transfer of points does NOT include a reservation for a room, just the points.
It's important to realize that owners are only allowed ONE transfer per use year. This means ONE transfer in OR out of their account, not one of each - so transferring options are rather limited. The transfer itself is rather simple though it is necessary to call to member services and the person that wants to transfer the points has to provide the member name and account number that the points are being transferred to.
Note that transferred points retain their home resort AND use year from the account they are coming from, but also DO NOT SHOW UP in your online account, so you must use another source to track these points. Transferred points cannot be banked or borrowed points, they must be from within their existing UY. But, you can transfer points from a future UY. Shameless plug - the tracking tools supplied by this website do allow you to track transfers on the computer, which the Disney system does not.
Yes. Yes you do. They are not accessable on-line, so the only way to use them is to call MS.
You cannot borrow transferred points to an earlier UY, but you can follow the standard banking rules for the points. Remember, banking rules will follow the UY of the points, NOT the UY of your account!
Nope, sorry. Like banking and borrowing, transfers are a permanent move.
Well, if you have two accounts with different UYs, this means you can't use all the points for a single reservation. So a transfer of points would allow you to use more points for a single reservation. This is a slight simplification of potentially having to make two reservations with the two different accounts, but of course the complication is that now you can't make the reservation on-line, only through MS. Most of the time this isn't really necessary, but it is an option.
Similar to renting points, the same resources are often available to transfer points (Brokers and On-line communities). Transfer points are a more secure option, especially through a broker, because the money is held by the broker until the transfer is complete, and then the person who did the transfer is paid in full instead of having to wait until the time of the reservation. Again, this only works between two DVC members.
Yes. Yes you can.