💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

SuzanneL (Florida)
Posts: 32
Posted:
Our HOA was approached by a local cable company about renewing an allegedly expired agreement. They are offering the HOA ~$30,000 to exclusively market their services in the community for 10 years. This is not a bulk agreement for services, but does prohibit the HOA from entering into any bulk agreement. They do ask for exclusivity in marketing their services. We currently have a no solicitation rule. The agreement also has entry and easement language as we are gated.

Does anyone have any experience with these contracts? I don't know how agressive their marketing will be, but I'm sure many residents don't want to be marketed to by anyone.
TimB4 (Tennessee)
Posts: 21,047
Posted:
Don't look at the money. Look at the services provided and what the members want.

Giving exclusive access contract ban other service providers, who may be better, from offering services to your members. Without the potential loss of customers, there is little incentive for that company to provide good customer service.

I would say, give a copy of the proposed contract to the membership and let them vote on it. Also, if your considering having an exclusive use contract, solicit other bids.
PeterD3 (Florida)
Posts: 708
Posted:
We were just asked about this last night by our P.M. as well so I am curious what others have to say as well.

We're waiting for the contract to review before discussing further.

PeterD3 (Florida)
Posts: 708
Posted:
Also, what are any (possible) tax implications for accepting this money?
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Here's something many don't know about many cable companies. They are NOT all government regulated. Which means they can run roughshot over their customers. I believe Comcast a major cable company is not government regulated. You may want to double check that.

The government controls (NOT FCC) can make a difference in your services. Our cable company left cables running down the street unburied for months. They didn't actually bury the cables but hired an outside contractor to do that. So I would recommend finding this information out on how they run their equipment. We found out the hardway.

You also have to consider since the cabling if it doesn't exist, has to be run through the COMMON property of the HOA. Which may mean a majority vote of the homeowner's to approve the digging up and installation of the equipment. One neighbor may not want the service but they still have to dig to run it to the other neighbor who does.

It's best to present this idea to the entire membership for a vote. With so many options out there like satellite and other type services, this may be an outdated service in 10 years. I would invite them to have their sales pitch at a meeting or a special one. Just to get things on the same footing...

Former HOA President
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Be sure you will not be limiting peoples choices meaning they can still choose/use other services like sattelite cable TV.
SuzanneL (Florida)
Posts: 32
Posted:
The president says this is a limited time offer and wants to push it through. I think it needs to be carefully reviewed and options with other companies considered. For instance, we don't have fiberoptic which gives better service except for the security cameras.

I personally dropped my service with this cable company for bad service and high rates and might be forced back into business with them under the terms of this contract.

The board members frequently saidy 'let the peopl'e decide until they get on the board and then make IMO poor business decisions.
JanetB2 (Colorado)
Posts: 4,219
Posted:
Quote:
Posted By SuzanneL on 02/09/2012 10:46 AM
The president says this is a limited time offer and wants to push it through.


Don't get pushed ... if they wanted the business this week then they will want it next month.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Quote:
Posted By SuzanneL on 02/09/2012 10:46 AM
The president says this is a limited time offer and wants to push it through. I think it needs to be carefully reviewed and options with other companies considered. For instance, we don't have fiberoptic which gives better service except for the security cameras.

I personally dropped my service with this cable company for bad service and high rates and might be forced back into business with them under the terms of this contract.

The board members frequently saidy 'let the peopl'e decide until they get on the board and then make IMO poor business decisions.

Susan

You say you dropped your service with this company. Does this mean where you presently live and you could you get other service there?

That would be my concern. Abilty to get other service. Be sure this ageement will not limit getting other service.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

  • ✓ Ask follow-up questions
  • ✓ Share your experience
  • ✓ Get expert advice
  • ✓ Access 350,000 discussions
Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here