Big Sky Resort hotel condo owners are suing the resort’s parent company for claiming its rental management company “is skyrocketing prices and robbing them of rental income,” according to a report. Daily Chronicle of Bozeman.
The plaintiffs include Larry Anderson, Suzanne M. Anderson, Robert and Nora Erhart and Tjarda Clagett, owners of condominium hotels at the Summit Hotel, the Shoshone Condominium Hotels and the Village Center at Big Sky Resort. The plaintiffs filed a lawsuit in Butte U.S. District Court on December 30, naming Boyne USA, Boyne Properties and Summit Hotel as defendants.
“The plaintiffs are seeking class action status, saying the damages could exceed $ 5 million and number more than 100 class members,” the Chronicle reports.
Condo units with private owners remain open to the public through Big Sky Resort’s inventory and owners can use the unit as a vacation home. The rental management agreement requires landlords to exclusively use Boyne’s rental management program, which costs landlords 50 percent of net rental income.
The plaintiffs say the rental management contract allows Boyne to “inappropriately charge above market rates” for his management services, according to the lawsuit.
The market rate for rental management fees in Big Sky is around 25% to 35%, according to the complaint, adding that similar resorts charge less than 50% and do not require owners to use the developer for management. rental.
The complaint includes a number of other allegations, including that Boyne was “covering up his conduct” by not disclosing room rates or providing monthly statements to unit owners on accommodation rates, charges for accommodation. resort, taxes or deposits to owners.
Big Sky Resort and Boyne declined EBS’s request for comment.