Condo owners sue Boyne over rental management dispute – Explore Big Sky

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Big Sky Resort condo owners are suing the resort’s parent company on the grounds that its rental management company is “price gouging and misleading them about rental revenue”, according to the Bozeman Daily Chronicle.

The plaintiffs include Larry Anderson, Suzanne M. Anderson, Robert and Nora Erhart and Tjarda Clagett, owners of condo hotels at the Summit Hotel, Shoshone Condominium Hotels and Village Center at Big Sky Resort. The plaintiffs filed a lawsuit in U.S. District Court in Butte on December 30, naming Boyne USA, Boyne Properties and Summit Hotel as defendants.

“Plaintiffs are seeking class action status, claiming damages could exceed $5 million and have more than 100 class members,” the Chronicle reports.

Condo units with private owners remain open to the public through Big Sky Resort inventory and owners can use the unit as a vacation home. The rental management agreement requires landlords to exclusively use Boyne’s program for rental management, which costs landlords 50% of net rental income.

The plaintiffs claim that this rental management agreement allows Boyne to “wrongly charge above-market rates” for its management services, according to the lawsuit.

The market rate for rental management fees at Big Sky is around 25% to 35%, according to the complaint, adding that similar resorts charge less than 50% and do not require landlords to use the developer for rental management.

The complaint includes a number of other allegations, including that Boyne is “covering up his conduct” by not disclosing room rates or providing monthly statements to unit owners about room rates, resort, taxes or deposits to owners.

Big Sky Resort and Boyne declined EBS’s request for comment.