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Tricom Management - anyone else experiencing problems?


Apr 28, 2024
Reaction score
Resorts Owned
Villa del Palmar, Club Tahoe, Ocho Cascadas
A copy of our experience and ensuing complaint follows

Tricom Management:

This is an official complaint from a Member of the ROA documenting your failures as our Community Manager to properly execute your responsibilities under the Management Contract in accordance with the ROA by-laws and to comply with the various state Statutes that apply to our Association.

1. By agreement you are required to use reasonable efforts to maintain compliance with all government laws, regulations, and ordinances.

a. NRS 116.31069 requires that Associations establish and maintain an internet website with all association by-laws, budgets and notices. Tricom has failed to provide this.

2. By agreement you are required to investigate all accidents and damage to the resort and make a written report to the Board. These reports are to be made available to the Owners.

a. In Q1 2024, an apparently unlicensed contractor was hired, presumably by Tricom, to make plumbing repairs. The contractor is reported to have caused significant damage. The Board claims there is no report of this incident or damage, in spite of the fact that the incident included the arrest of one of them. Tricom has failed to provide the required report(s).

3. By agreement, you are required to cause on-site personnel to be available at all scheduled times.

a. There have been significant staffing issues, including turnover and no-shows, for several months. The front desk is often closed before 6pm. On a recent Saturday, a check-in day for about 1/3 of the units, a Unit owner arrived during normal check-in hours to find the front doors locked and no personnel on site. Tricom has failed to meet the staffing requirements.

4. By agreement, you are responsible for overseeing the election of Directors.

a. In April of 2023, the Board and Tricom failed to properly install a replacement Director for the director who retired the preceding November of 2022. While this may have been the direct responsibility of the Board – Tricom failed to properly oversee the election.

b. In April of 2024, the Board asked Tricom to confirm the presence of a quorum for the election of Board Members. The Tricom representative verbally confirmed a valid quorum. During this meeting, I rose, was recognized by the Chair, and stated that I was rising to a point of order. I specified that I believed that the announced 24% total of received proxies did not meet the CTROA By-Laws definition of a valid quorum and asked for verification. The quorum requirement is met when a majority of Interval Unit Owners are present in person or by proxy. 24% is not the majority required by the By-Laws. The Chair acknowledged and deferred my point of order. This point of order was not addressed prior to meeting adjournment. Tricom failed to provide valid oversight.

5. By agreement, you are required to provide access to Owners at all reasonable times for inspection and transcription of all books of accounts and other records of the Resort. You are also to provide the Roster of Owners to Owners upon request.

a. On April 27th, I requested access to the budget and the Roster of Owners in person at the front desk during regular business hours on the day of the Annual Meeting. I was told that “someone would get back to me”. After two hours, my wife and I left with no response. We have not received a follow up call or letter. Tricom failed to meet its responsibility.

6. By agreement, you are required to provide a budget to all Owners not less than 45 days prior to the beginning of each Fiscal year.

a. There is no budget posted on the owners’ section of the website for any year. Tricom has failed to provide this contractually required information for nine years.

7. By agreement, you are responsible for Unit (Interval) Resales for no less than 50 units per year or a payment of $500 times the shortfall, (50 minus the number of sold units).

a. Tricom has not posted or advertised any association owned units for sale in the last 3 years, even though it maintains an active “for sale by owner” section on theROA website. There is no available evidence that shows that Tricom has either annually sold 50 units, paid ROA the $25,000, or reduced the Tricom Management fee by a corresponding amount. Tricom has failed to meet its contractual obligation to resell units taken into inventory.

It is this last failure to list and resell that is the most troubling. This failure creates a serious budget shortfall and is certainly not to the benefit of the Association’s Owners. Rather than the Association receiving full maintenance fees for each sold unit, the Association receives short term rental income, after expenses. Tricom receives a 35% commission for renting out units held in inventory, effectively making you partial owners of the units at no incremental cost. For this to be beneficial to the Association Members, the rents paid by non-owner transient renters would need to be at least $2,000 per week. (At $2,000 per week x 60% occupancy x 65% net to ROA = MF). This does not include the increase in staffing costs for cleaning. I believe the more than $200k shortfall in the 2023 operating results reflects the folly of this approach.

Since it appears that none of these Association owned units have ever been posted for sale, as Association members, we have to assume that Tricom intends to continue to use these “effectively owned but not paid for units” for the benefit of Tricom. This is to the disadvantage of the Association Membership. At the very least, this is a failure to properly execute the management responsibilities in your contract. Given the stonewalling by Tricom and the ROA Board of any requests for information, this appears to be a willful action, not an accidental failure and is possibly a violation of state statutes.

Indemnification does not extend to acts of the Manager that are the result of the Manager’s own gross negligence or willful misconduct. I believe the failure to even attempt to resell interval units may rise to the level of willful misconduct.