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It depends on the company - there is a list posted at the top of the Exchange Board listing the main exchange companies and their rules. The two big boys, RCI and II, do not allow exchanges to be rented.
Having a guest pay your fees and expenses is considered renting. However, it is my understanding that RCI allows you to have your guest pay your exchange fee and guest certificate fee, only.
How do they find out? For one thing they actively pursue people who post on BBS's, and people who openly advertise exchanges, and they encourage other people to report exchangers who are renting.
Consequences? You can lose your exchange company membership, deposit, and exchange - your renter can show up and be turned away.
Do people rent exchanges? - It happens. If you are planning on doing it, you might not want to discuss it here.
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