Renting out an interval week not owned by you?

[K2Quick]

This is interesting...



Seems that those that buy, only to exchange, are breaking an II Rule

There's a difference between the "should not" in the buying-only-to-exchange verbiage versus the "may not" in the renting-out-an-exchange verbiage. I think that, more than anything else, this CYA for II against owners disillusioned by developer salesmen who promise the availability of high-season exchanges in exotic places in exchange for the low-season week at a low-end resort that the target ended up buying.

 

[dickgregory]

This is interesting...



Seems that those that buy, only to exchange, are breaking an II Rule

Interesting . . . it's listed as item 12(c) in the II attachment to the DC program. Item 12(k) states:

Membership in II may be used only for personal and noncommercial purposes. Any other use of membership benefits may result in the suspension or termination of a member's privileges.

To point out how absurd this is, imagine if Costco had a rule that you couldn't sell on the open market a product you purchased from them for your personal use under threat of being barred from membership for violating the policy. If the "returns" period has passed you're stuck with something you can't use based on that policy!

 

[MOXJO7282]

Section VI Miscellaneous Provisions, Paragraph 2 Personal Use: Commercial Purposes contained in the MVC Exchange Company Disclosure Guide states:

"Accommodations, Base Exchange Benefits, Base Plus Exchange Benefits, Exchange Benefits, and Use Periods may not be used for any commercial purpose. This prohibition on commercial use includes, but is not limited to, any illegal activity or a pattern of occupancy, rental, leasing, or use by a Member that Exchange Company, in its reasonable discretion, could conclude constitutes a commercial enterprise or practice. In the event a Member is determined to be reserving or using the Accommodations, Base Exchange Benefits, Base Plus Exchange Benefits, Exchange Benefits, and Use Periods for any commercial purpose Exchange Company may immediately cancel any current reservation(s) made by such Member and may impose such additional penalties or restrictions as determined by Exchange Company, in its sole and absolute discretion, from time to time. The restrictions of this paragraph do not apply to Exchange Company or its affiliates or designees.

I think there is another clause that says it can't be rented, bartered or sold because otherwise nothing in this clause IMHO specifically prohibits a non-commercial person to rent or barter an exchanged week. If this is the only language then we're back to the definition of commercial enterprise which to me is not an individual who just does it to recoup some spent funds.

 

[fluke]

I think II (or RCI) have no interest in every stopping these rentals. Why would they? It is profitable for them to have as many exchanges and guest certificates as possible and what do they care whether someone rents the exchange or stays in it? At least on a relatively small scale.

These rules(IMO) were written so they would have legal recourse if a large scale enterprise was set up to gain profit off the exchanges. They gain nothing(financially) by going after small time renters.

I think anyone who thinks that II (or RCI ) are ever going to intervene on someone who rents 1, 5 , or even 10 exchanges a year are kidding themselves. I think if you see an entity renting 100 or 1000 exchanges a year for profit then that would likely draw attention and incite action from the exchange companies.

 

[dickgregory]

I think II (or RCI) have no interest in every stopping these rentals. Why would they? It is profitable for them to have as many exchanges and guest certificates as possible and what do they care whether someone rents the exchange or stays in it? At least on a relatively small scale.

These rules(IMO) were written so they would have legal recourse if a large scale enterprise was set up to gain profit off the exchanges. They gain nothing(financially) by going after small time renters.

I think anyone who thinks that II (or RCI ) are ever going to intervene on someone who rents 1, 5 , or even 10 exchanges a year are kidding themselves. I think if you see an entity renting 100 or 1000 exchanges a year for profit then that would likely draw attention and incite action from the exchange companies.

I tend to agree with you. However, II should clarify this. If they barred a person for doing simply one rental, as in my case, it would be a huge loss for that individual not to have exchange benefits. It's more prudent to walk away from the few hundred dollars spent on exchange fee for a unit you ultimately can't use than lose a lifetime of exchange benefits.

 

[dickgregory]

I think there is another clause that says it can't be rented, bartered or sold because otherwise nothing in this clause IMHO specifically prohibits a non-commercial person to rent or barter an exchanged week. If this is the only language then we're back to the definition of commercial enterprise which to me is not an individual who just does it to recoup some spent funds.

Actually, you are correct. It's buried as Paragraph 13 in the "General Exchange Procedures and Priorities" section of the Interval International Exchange Program for members of the MVC Destinations Program and reads:

"Club Program Members and Individual Members are expressly prohibited from selling or exchanging a Guest Certificate for cash, barter, or other consideration."

It's odd that TUG permitted me to post an ad to exchange my unwanted AC week for a different week, in violation of the above rule. I'm removing my TUG exchange offer now.

 

[EKniager]

I hope this advice is not against TUG policy, but...

From a practical standpoint, just "gift" it. Why would the giftee "out" the giftor and screw themselves after the thank you jelly beans have been sent and, um, consumed?

(LOL, I once had a friend tell me he did not fire an employee because she had a personal porn web site and he most certainly did not fire her because she sent the link to all the other employees in the office! )

 

[brigechols]

I think II (or RCI) have no interest in every stopping these rentals. Why would they? It is profitable for them to have as many exchanges and guest certificates as possible and what do they care whether someone rents the exchange or stays in it? At least on a relatively small scale.

Where does II and RCI obtain their rental inventory (Getaways and Endless Vacations)? Seems that a private person renting an exchange cuts into the rental revenue of the exchange company.

 

[LAX Mom]

I think anyone who thinks that II (or RCI ) are ever going to intervene on someone who rents 1, 5 , or even 10 exchanges a year are kidding themselves. I think if you see an entity renting 100 or 1000 exchanges a year for profit then that would likely draw attention and incite action from the exchange companies.

There have been several individuals on TUG who have had their II accounts frozen, lost their deposits and exchange fees because II suspected they were renting exchanges or getaways. These weren't members doing numerous exchanges per year. I know of a couple of people who had their accounts frozen but they weren't renting exchanges. II just suspected they were, because of the number of guest certificates they had ordered.

I recall one TUGger who purchased some getaways and was trying to rent them at a profit. He got caught by II and they cancelled all his getaways but wouldn't refund his fees. He was out thousands of dollars and not very happy about it. He posted on TUG looking for some help, but most TUGgers just told him he violated II's rules and should have know better.

I hate to burst your bubble, but II does care and will revoke your account. II will likely never know if you receive a nice thank your from a friend who used a week you couldn't use. But if you start advertising rentals on a public forum (ebay, craigslist, etc) then you are putting your II membership, deposits and future exchanges at risk.

 

[MALC9990]

Where does II and RCI obtain their rental inventory (Getaways and Endless Vacations)? Seems that a private person renting an exchange cuts into the rental revenue of the exchange company.

I believe that weeks that II sells as Getaways, are weeks that II has purchased from the TS Resort Companies such as MVCI. These weeks being unsold inventory.