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Reservations also provided biennial "deep cleans" of each
condominium. For these services, Rainbow Reservations charged a
commission of 40 percent of the gross rents.
As part of its front desk service contract with the
Homeowners' Association, Rainbow Reservations checked guests in and
out of the condominiums, issued parking permits, answered questions
regarding entertainment or other activities in the area, and
provided additional services as needed. During 1993, the front
desk's normal business hours were between 8 a.m. and 5 p.m.,
although the front desk stayed open longer between July and early
October for a sprinkler refit at the resort. The front desk staff
consisted of two to four persons at any one time.
Rainbow Reservations provided its own advertising for all of
the units it managed in Hawaii, including Valley Isle Resort. In
general, the advertisements were directed toward travel agents,
although some were directed toward the public.
Petitioners did not enter into the typical management contract
with Rainbow Reservations. Instead, petitioners and Rainbow
Reservations agreed that petitioners would rent the Maui condo
themselves and perform the majority of services otherwise provided
by Rainbow Reservations. Petitioners and Rainbow Reservations
entered into an "Amendment to Rental Agreement Between Owner And
Rainbow Reservations, Inc." (the addendum agreement) which
provided:
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Last modified: May 25, 2011