Services Agreement with Cable Provider

All,

Checking an opinion on this from other park owners that may have went through this.

My local cable provider has sent a services agreement for $XXX dollars for having their cables in the park.

It allows them to service the cables ect.

My park is a 60 lot park in Louisiana.

What is an acceptable amount?

Request monthly payments based on usage vs. lump sum amount?

Regards,

Tim D.

Tim,

The rule of thumb is to get as much as you can. There is no set minimum or even range of values, as the cable company doesn’t really need to pay you effectively – what are you going to do, rip the cable out of your park and leave your tenants without access? The advent of DirecTV and Dish Network has made old-fashioned cable less appealing and they’ve lost their monopoly power. Just negotiate as hard as you can and take whatever they’ll give you. We’ve received lump sums for each resident, percentages of the revenue and – in some cases – nothing at all. Whatever you get is money for nothing.

1 Like

Frank,

Thanks for input, I figured this was an open buffet - just wanted confirmation.

I put in a calculated counter offer with free cable for manager. Comcast is kicking up to management for review.

Thanks,

TD

Any update? What happened? What pricing did you negotiate?

Thank you,

-jl-

Any ballpark numbers here for what people have received in the past? Cable company I’m speaking to has said they’ll do a rev share of 4% for a non-exclusive deal or 8% for exclusive.

Depending on the company, each is different. I am not going to list the names but,
One contract I have has varying percentage based on how many people sign up for the service, It starts at 5% which is where I am at. With another provider I get 8% of revenue, I inherited that from a previous owner.
The checks I receive are a few hundred dollars every quarter but it has gone down alot.
There are so many choices for cable now, everyone is offering it.