Park City Property Manager Late on Payments to Owners

May 13th, 2009 Categories: Park City

David Holland Resort Lodging Follows Deer Valley Lodging’s Lead, Suspends Rents Payable to Park City Condo Owners

Chalk-up another victim to the nation’s financial crisis, as economic forces continue to affect Park City’s nightly rental industry.

A downturn in business during the 2008-09 winter season and the inability to get credit forced a second Park City, Utah property manager to suspend rental payments to owners for rentals in Feb and March, 2009.

More Condo Owners Wait to Receive Rents

In letters to unit owners dated March 27 and April 10 respectively, David Holland Resort Lodging stated that not paying owners moneys owned was “due in large part to the severe national economic crisis” and “in past years when we did not meet our rental projections we were able to use our reserves and borrowed funds to make up the temporary shortfall.”

David Holland Zatz, owner of David Holland Resort Lodging, confirmed Tuesday that he, too, sent a letter to about 300 condominium owners at the end of March announcing a temporary delay of payments.

Credit Crisis Hits Park City Property Managers

“Funding I thought would be available to me wasn’t. Not everyone has declined, so I’m still working on it,” he said.

With 25 years in town, Zatz has successfully navigated his company through the recession in the 1980s and the slowing following Sept. 11, 2001. The difference this time is that banks still lent money during those periods.

“It’s just a different environment right now,” he said. “We’ve weathered all the storms before. I’m confident we’ll be able work through.”

There are vendors affected as well as owners, but the accounts with Home Owners Associations are separate, he said.