Article
Courtesy of The Sun Sentinel
By Daniel
Vasquez
Published January 12, 2009
With so much
competition for TV services out there – cable, satellite, and broadband
– does it make sense for condominium and homeowner associations to sign
up for long term bulk rate service?
It depends on the association. Those making the decision need to consider
association rules, details of the bulk contract and ways to save on price.
And they must realize not everyone will agree with their decision.
Associations are allowed by law to sign up for bulk contracts, and the
reason most do is because buying for large numbers is a way to bargain for
lower overall prices per unit owner.
"We are absolutely happy with the bulk TV contract we have,"
said Adele Caso. Her Hillsboro Beach condo association signed up with
Comcast for its 160-plus units more than two years ago. Caso says it cut
her previous TV bill from $110 a month to $63.
And $50 of that
bill is her individual charges for premium channels. About $13 is what
neighbors pay monthly for basic service.
But I also hear from readers like Lou Green of Sunrise who says his
association's cable contract is 11 years and has built in cost increases.
A long contract like that "may be completely off base with all the
competitive changes," he says.
AT&T recently began offering its new U-Verse Internet Protocol service
(via a cable from the street) in bulk contracts to associations in South
Florida.
And there are ways to help make sure your association gets the best
contract and deal, says Corey Hayes, director of sales for DirectPlus LLC
of Coral Gables, which provides bulk cable and Internet services for condo
and homeowner associations.
"We help condo associations in Broward and Palm Beach counties get TV
service for their unit owners that are 30 to 40 percent off retail prices,
and help them choose what is best for their community, whether it's a
package of 50 or 150 channels."
The No. 1 complaint he hears from associations is they didn't know their
contract can be written so it automatically renews.
Hayes said it is important to check the contract for the expiration date,
as well as whether the contract calls for an official 90-day
"notification" from the association that it wants to end the
contract.
"If you don't give notice, a contract can renew for five years or
whatever term" stated on the contract, Hayes said.
Here are areas of a bulk contract that associations should look out for
when signing up:
Get several estimates. Don't go with the first company you come
across. And make sure you ask the same questions about service, equipment
and programming of each company.
Choose the right term. Contracts typically last from 5 to 10
years. The longer you sign up for, the lower the price. But keep in mind
TV technologies and services (along with prices) change rapidly and being
locked in for a long time can be restrictive.
Who owns the wiring? It's to the advantage of the association to
negotiate to own all of the wiring once the contract expires. And to know
whether the wiring system can be used by other providers.
Renegotiate at the best time: Hayes says associations have
"incredible power" to negotiate with a current provider 18
months or less prior to when the contract expires. Keep in mind, bulk rate
contracts are not exclusive, meaning they do not stop a unit owner from
signing up for another available service as long as they pay the fees owed
to the association for common service.
Report nonpayers: Many service providers, when contacted by a
board or management company, will cancel service to individual units when
owners have stopped paying for service.
What do you say? Has your association recently signed up for service or
considering doing so? Are you a member of an association with a bulk
contract who is happy or unhappy? Contact me or leave a message online on
the column message board or send a message at Twitter.com/ConsumerDan.
Daniel
Vasquez can be reached at:
[email protected]
or at 954-356-4558 (Broward) or 561-243-6686 (Palm
Beach County). His condo column runs every Wednesday in the Local
section and at www.sunsentinel.com/condos.
You also can read his consumer column every Monday in Your Money and at www.sunsentinel.com/vasquez
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