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manager, promoting Crestwood as a desirable property available
for rental to those who desired lodging during vacation and
recreational stays in the Snowmass Village area, entering into
rental agreements on behalf of petitioner, collecting rent from
tenants, inspecting petitioner's condominium units, maintaining
and purchasing necessary equipment and supplies, providing
housekeeping and related services, and making necessary repairs
and alterations to those units. In return, petitioner agreed to
pay the manager an operating charge to offset the cost of the
services provided by the manager and all actual costs and expens-
es incurred by the manager in providing such services. The
operating charge was to be determined as follows:
The proportion which the OWNER shall pay for each
billing period shall be a uniform percentage (identical
for all properties managed by the MANAGER) of gross
rental receipts, which percentage shall be determined
by the MANAGER each year by analyzing the percentage of
expenses for all properties managed by the MANAGER, as
reflected in the annual audit. At the end of each
fiscal year the MANAGER will adjust the OWNER'S total
operating charge for the year to the percentage re-
flected in the annual audit as the actual percentage of
expenses. If the actual expenses exceed the operating
charge for the year, the OWNER agrees to pay the ex-
cess; if the actual expenses are less than the operat-
ing charge, the MANAGER agrees to refund the differ-
ence.
During the years at issue, petitioner rented both of his
condominium units. The average period of customer use for peti-
tioner's condominium units was less than seven days.
Participation by Individuals Other Than Petitioner
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Last modified: May 25, 2011