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for the Maui condo was $80 per night, with additional fees for
rollaway beds, the use of entertainment equipment, or daily linen
or cleaning services which raised the rate to approximately $120
per night.
In between each booking, the maid service cleaned the Maui
condo in preparation for the next tenant.
B. Molokai Condo
The front desk at the Wavecrest Resort was operated by one of
the local residents at the resort. The front desk service included
maid service which was provided at the end of each tenant's stay.
There were no fixed hours at the front desk, and often phone calls
were forwarded to an answering machine. The front desk lacked
authority to make repairs or perform any work at the Molokai condo
except in the case of emergencies. If the Molokai condo was not
rented for extended periods of time, petitioners paid a special
front desk fee. The Wavecrest Resort did not advertise its rental
units.
Petitioners paid a commission of approximately 25 percent of
gross receipts to the front desk at the Wavecrest Resort, in
addition to a reserve account payment for capital improvements of
common areas at the resort.
During 1993, petitioners rented out the Molokai condo for
approximately 5 weeks. The average stay was 6.5 days, and the
rental rates were the same as that for the Maui condo.
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Last modified: May 25, 2011