There are "commercial activity" restrictions in most if not all of the resort governing documents. So I could see where they could place some type of cap limit on weeks based reservations.
I am curious if one can make money renting high value weeks booked with points, since this is the problem they try to solve, at least this is what they claim in the email. Why would Marriott be bothered by off season rentals?
I like their approach, putting a cap on the number of points being transferred IN to accounts while at the same time, allowing for special-circumstance-waivers on an as-needed/by-request basis. This preserves the expressed rights in the governing docs that allows transfers as well as rentals, and doesn't penalize the owners of a gazillion points from continuing to rent OUT their points to multiple people. (Think of the Residence Club owners specifically who were encouraged to enroll their gazillion-points-generating shares by the stated promise to be able to rent them out.)
I understand the drip-drip warning. And as an owner who has dabbled in renting out high-demand points reservations I'll admit, I would like to see them similarly attack rentals by putting a limit on the number of reservations in an owner's account to which guest names can be added. Weeks or Points, I've always been in favor of them enforcing in one way or another the vague "no commercial activity" prohibition that's in all the docs.
Should be interesting going forward.
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Only certain weeks, certain events, certain locations. F1 week in Las Vegas will probably bring 1k a night or more.
What is so difficult to understand about, "owners have different rights than developers/managers, and in most cases the rights granted to developers/managers are more generous." It's true in most every aspect related to timeshare ownership including rental rights.But the developer renting units for hundreds of millions of dollars a year is not a problem
Yes, there's money to be made, especially if you're using Exchange Points from enrolled/elected Weeks that have relatively lower MF's (compared to Trust Points MF's.)
So far Marriott hasn't defined "commercial activity", but many do earn significant income from renting weeks that could be defined as such. The circumstances shouldn't really matter in the definition.
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If you are talking about Vistana weeks, our rules are pretty clear:
I haven't seen the Vistana docs but every one I've ever seen for any company has included language talking about personal use, usually with a preclusion on commercial renting. In this situation the current discussion would apply to those Vistana and Westin members as well to the extent they participated in the Club portion.
Most resort docs specifically mention rental (to a tourist) as a permitted activity.
THese types of events are one off things (well two), but you get what I mean. It isn't every year we see F1 or the Superbowl in a location with timeshares. I would think there has to be other regular situations where it makes sense to rent and flip point bookings like this. Seems like a lot of work for little gain and a lot of risk.
I don't beleive developers are fiduciaries. They have no obligations to us except to sell us a product/service that we voluntarily agree to purchase. THe HOA on the other hand does, but not the developing company.
The gain may be PR. Blame inventory issues on commercial rentals, show you are doing something. They do not even need to recode the system.
"Both directors and officers owe a fiduciary duty to all owners which requires them to act in the best interest of the owners." You are in a better position to interpret this article, what do you think? Remember, the developer has multiple roles because it is a property manager, it also manages the point trusts, and it also manages the reservation system. They may have individual licenses for each category.
