The Whistler Covenant – License to Steal?

BAW4.2Its sounds rather sensational doesn’t it?

But what would you call this?….

A manager rents your units for over a year and doesn’t pay you anything? No, you are not reading this wrong. He pays you nothing for over a year, and then if you won’t work with him on terms he dictates he locks you out of your own property.

All because the City of Whistler enables it.

We are unit owners at the Nita Lake Lodge. A Whistler Phase 2 real estate property, which means we also have a Whistler covenant attached to our property. This City covenant amongst other things allows unit owners to use their properties up to 28 days in the winter and 28 days in the summer etc. This covenant also stipulates that there be a single booking system through which the rooms can be booked and used by Whistler tourists. Which, on the surface seems fine.

But what do you do when an opportunistic investor buys a large blocks of the hotel units at distressed prices then sets up a management company controlled by the same individual and decides to unilaterally take over the management of the front desk without the consent of the other owners?

Normally there would be an organized process for the selection of the best and most qualified hotel management company. We didn’t have that opportunity because the majority owner/manager took control of the desk and used his majority position to block an independent selection process.

Now our project has a manager, who claims our Rental Pool Management Agreements (RPMA) have been terminated. Current and potential Phase 2 investors, pay attention here. The Rental Pool Management Agreement is usually a long term agreement that you enter when you buy your property, it in large part, determines the value of your property because it governs the revenue you should get from the rental of your units.

Since the Nita Lake Lodge manager has decided that our RPMA’s are now terminated, he is attempting to coerce other owners (including us) into a new deal saying if we don’t agree to it, he will sue us.

This manager says that since he is the manager, and the Whistler covenant says there can be only one manager, that it has to be him. Furthermore, he is locking us out of our rooms until we agree to his ultimatum, saying that if he can’t use our property, then neither can we.

How can all this happen? Well…..back to the Whistler covenant. As long as this manager is allowed to defend his behavior using the Whistler City covenant, the Whistler phase 2 real estate model won’t work.

Why doesn’t the City of Whistler, get in the game and do the right thing?

The Whistler Phase 2 model could easily work but only if the City decides to administer it’s own rules and prevent abuses of its own covenant by managers such as the one at Nita Lake Lodge.

Until then, don’t buy Whistler Phase 2 real estate.

And for all you Whistler real estate agents who sell Phase 2… can really help here. Help us ask the City of Whistler to show their commitment to the Phase 2 model and help us.

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