**Mods - I started this thread to separately discuss next steps owners might take given the recent COVID-19 developments and how RedWeek has indicated they will handle. If you believe this should be merged into the other RedWeek thread, happy for you to do so.
All, I thought I'd post how I plan to handle RedWeek's recent message from the CEO. A bit of background to understand where I am coming from. We own four timeshares in the big systems (Hyatt, HGVC and Vistana) and typically use two of those each year and rent out the others to cover maintenance fees. I rented two weeks this year with RedWeek - one using self-service and one using their full-service. The self-service rental was for arrival April 11 and I have worked with that renter to find new dates for them to travel close to the end of this year. The RedWeek full-service rental is for arrival June 20, 2020.
While I appreciate the variety of views on how this situation should be handled, at the very least I feel like the losses associated with any COVID-19 cancellations should be shared between the renter and the owner. The cancellation conditions in the RedWeek contract are clear and only permit cancellation for very specific reasons. Clearly the current situation is not contemplated (and is certainly not part of the permitted cancellation reasons) and in my view a strict reading of the contract would not permit cancellation. That said, I am not heartless and appreciate the severity of the situation and unusual circumstances. I am also trying to be realistic in considering the cost and effort it would take to litigate against RedWeek and the possibility the courts would interpret the contract differently. However, in my opinion, none of that means owners should alone bear all the losses associated with a COVID-19 related cancellation. I do not rent as a commercial enterprise. I do not make sufficient profit that I can absorb the loss of such a rental. Even for those systems providing some flexibility to use the week in a future year, the reality is that desirable weeks will be more limited and I already own sufficient weeks for my future use needs. Even more difficult, in this specific case the week is with Hyatt which does not permit a very flexible usage outside the current use year (this is their standard system, not as a result of the late cancellations). Bottom line, I will be out of pocket and unable to recover my maintenance fees.
Given the above, I sent the following message to RedWeek today:
Pursuant to the recent notice posted by the CEO of Redweek, I am no longer comfortable using the Redweek "full-service" rental product. You have clearly failed to appreciate that this situation affects BOTH owners and renters. Instead, you have chosen to unilaterally impose upon owners the liability for all losses for a situation clearly not contemplated by either party nor the rental agreement in place. I disagree with your interpretation of what constitutes "habitable" and believe the contract entitles me to full payment so long as the resort is open and accepting guests. The rental contract is clear in that I am not responsible for how a renter is to get to the resort. Despite the clear contractual terms, your message implies you will be refunding renters for any COVID-19 related cancellation.
Absent confirmation by you that you will equally apportion losses for any cancellation due to the COVID-19 situation by refunding 50% of the rental fee to the renter and distributing the remaining 50% of the rental fee to the owner, I will be cancelling this rental reservation on April 3, 2020. I trust you will inform the renter accordingly.
I post my thoughts here in the hope that others will send a similar message to RedWeek that forcing owners to suffer 100% of the losses is not acceptable and that we will not continue to use their full-service product now or in the future if they don't take a more balanced view of how to handle the situation.
All, I thought I'd post how I plan to handle RedWeek's recent message from the CEO. A bit of background to understand where I am coming from. We own four timeshares in the big systems (Hyatt, HGVC and Vistana) and typically use two of those each year and rent out the others to cover maintenance fees. I rented two weeks this year with RedWeek - one using self-service and one using their full-service. The self-service rental was for arrival April 11 and I have worked with that renter to find new dates for them to travel close to the end of this year. The RedWeek full-service rental is for arrival June 20, 2020.
While I appreciate the variety of views on how this situation should be handled, at the very least I feel like the losses associated with any COVID-19 cancellations should be shared between the renter and the owner. The cancellation conditions in the RedWeek contract are clear and only permit cancellation for very specific reasons. Clearly the current situation is not contemplated (and is certainly not part of the permitted cancellation reasons) and in my view a strict reading of the contract would not permit cancellation. That said, I am not heartless and appreciate the severity of the situation and unusual circumstances. I am also trying to be realistic in considering the cost and effort it would take to litigate against RedWeek and the possibility the courts would interpret the contract differently. However, in my opinion, none of that means owners should alone bear all the losses associated with a COVID-19 related cancellation. I do not rent as a commercial enterprise. I do not make sufficient profit that I can absorb the loss of such a rental. Even for those systems providing some flexibility to use the week in a future year, the reality is that desirable weeks will be more limited and I already own sufficient weeks for my future use needs. Even more difficult, in this specific case the week is with Hyatt which does not permit a very flexible usage outside the current use year (this is their standard system, not as a result of the late cancellations). Bottom line, I will be out of pocket and unable to recover my maintenance fees.
Given the above, I sent the following message to RedWeek today:
Pursuant to the recent notice posted by the CEO of Redweek, I am no longer comfortable using the Redweek "full-service" rental product. You have clearly failed to appreciate that this situation affects BOTH owners and renters. Instead, you have chosen to unilaterally impose upon owners the liability for all losses for a situation clearly not contemplated by either party nor the rental agreement in place. I disagree with your interpretation of what constitutes "habitable" and believe the contract entitles me to full payment so long as the resort is open and accepting guests. The rental contract is clear in that I am not responsible for how a renter is to get to the resort. Despite the clear contractual terms, your message implies you will be refunding renters for any COVID-19 related cancellation.
Absent confirmation by you that you will equally apportion losses for any cancellation due to the COVID-19 situation by refunding 50% of the rental fee to the renter and distributing the remaining 50% of the rental fee to the owner, I will be cancelling this rental reservation on April 3, 2020. I trust you will inform the renter accordingly.
I post my thoughts here in the hope that others will send a similar message to RedWeek that forcing owners to suffer 100% of the losses is not acceptable and that we will not continue to use their full-service product now or in the future if they don't take a more balanced view of how to handle the situation.
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