Yes, it's true! We cover this as part of our DD ~ if a contract exists. 96% of the time the answer is "NO". Now what?
We get asked this a lot. So we decided to partner with a cable negotiator that we have worked with, intro - Steven Levenherz with Communications Consultants Group.
Steven’s expertise is in the wired and wireless communications arena. He negotiates cable services agreements assuring communities the highest compensation from cable providers for providing access. Steven and company have negotiated deals for 17 years with every cable provider, for nearly 5,000 communities nationally for large and small owners of MH parks, apartments and condominiums.
From a due diligence standpoint, it is refreshing to identify this for our clients and for them to have an additional unexpected income that can exceed the cost of due diligence. This additional income also adds value to the community or portfolio of communities.
The steps are easy -
1. Sign the attached Representation form.
This allows Steven to talk to cable providers on behalf of your listed properties to negotiate a term sheet for improved services and financial benefits
for your review and approval. Email these forms to [firstname.lastname@example.org].
2. Fill out the property list form provided.
Provide the entity names and TOTAL lots ~ ALL potential lots - not just occupied.
Once the initial rates are provided, they can be further negotiated or approved - completely up to you.
If you are not happy with the deal you can walk away at no cost.
Lastly, when compensation(door rates & revenue sharing) is finalized you then sign the Cable Agreement Steven's Firm presents to you to seal the deal if you are happy with it.
Commission is 30% of total compensation under the negotiated agreement. And CCG is your advocate ensuring all deal points in the Cable Agreement are honored by the provider.
Note, I negotiated a few of these back in the day when I was able to get ahold of a legal contact. Since then, cable companies have changed along with legal contacts, so I found it impossible to do another deal. Then, I worked with Steven. To date I have deals on most of my properties with a renewal negotiation already coming up on a few! ~ Steve Edel.
Door (lot) fees have ranged from $50 to $200+ per door and revenue sharing schedules vary depending on the cable company, the portfolio size and competitive environment.