Cable/internet Exclusivity agreement

[Steve Lucas]

Hello All,

I am currently in negotiations with spectrum cable on a internet/cable 10 year exclusivity agreement for a 233 unit complex in Ohio.

They are offering me 23k upfront (which seems low) 7300 a year in revenue share. The are also trying to sell me on a bulk service deal. The bulk service deal would be for the whole complex. They are stating they would charge us $42 a month per door and we would sell it for $75 a month. I don't like this deal because I feel that it will hurt our chance of raising rents in the future under the thought process of tenants believing we are billing them for more things nickel and diming them etc.

Also is there anything I should know for the non bulk deal? Is the upfront bonus to low? Thanks!!

[Matthew Paul]

Call their competition start a bidding war .   233 units is a BIG score for them , you can demand more .  Its too big of a fish to get away .  I would start with a 5 year , with options and other clauses to your benefit .