Condos Hit Hard by Bulk Cable Deals

MIAMI, FL - With risng foreclosures in many condo communitites, associations and unit owners facing higher fees continue to look for ways to cut costs. Currently, a looming topic has been service providers. In order to receive cable or security system services, condo associations must sign multiyear "bulk" contracts, where individual owners cannot order their own service.

That also means that if an owner moves out, services are still provided to the unit and other residents are stuck paying the bill. Jan Bergemann, founder and president of Cyber Citizens for Justice, a condo and homeowners association advocate Web site, said the key is allowing the unit owner to choose his or her own providers. "The bulk contracts make unit owners have no say because the association (gets to) pick (the providers)," he said. "We've had a lot of comments about how to get out of these bulk contracts and the other tenants (being) stuck paying for empty or foreclosed units."

Bergemann also said he recently spoke with a Miami-Dade County condo board member who said 30 percent of his unit owners are no longer paying dues. "The economy is down and board members say they are broke because owners are paying their dues," he said. "The contracts come back to haunt them because (now) there is no money."

"It's been brutal because of the economy," said Charlotte Greenbarg, president of the Broward Coalition, a nonprofit organization that helps condo and homeowners associations. At a Broward Coalition meeeting last week, Leo Delgado, the chief marketing officer for CSI Associates, a group that consults with homeowners association and service providers, said associations sometimes need help to get a good deal. "Board members need to review the current agreement, which could be 20 years old, to see what their rights are, where they stand and what's the best course of action," Delgado said.

Individual hook ups are possible, Delgado said, but cable companies want the marketing and don't want to "keep disconnecting and reconnecting" at the condo communitites. "Big money needs good experience and a lot of the problems are caused by the inexperience of the boards members," Bergemann said. "The service providers are only too happy (to take advantage) because they go all the way to the bank."