How do we negotiate a bulk internet or cable agreement for our HOA?

By OurHOA · General information · Revised September 28, 2026

How an HOA board negotiates a bulk internet or cable contract: owner survey, bids, per-door rate, escalator cap, term, exit rights, Florida law and FCC rules.

Part of the HOA board handbook: vendors, projects and upkeep.

The short answer

A bulk agreement puts every home on one contract at a per-door rate, and the cost becomes part of the dues. It saves owners money only if the board controls four things: the price increase each year, the length of the term, what service each home actually gets, and how the association gets out if the provider stops performing. Work in this order. Confirm who has authority to sign, survey the owners, send the same request for proposal to at least two providers, compare total cost over the full term, negotiate the contract terms below, tell the owners before the vote, and have the association's attorney read the final draft. Expect three to five months from survey to signature. State law and your governing documents set the rules, and they differ, so treat this as a guide to the process rather than legal advice.

Check authority before you call a provider

Florida has the most detailed rules. For condominiums, Florida Statutes 718.115(1)(d) makes the cost of bulk communications, information or internet services a common expense and lets the board sign even if the declaration is silent. The contract must run at least 2 years. Owners can cancel a board-signed contract by a majority of the voting interests present at the next regular or special meeting. If nobody makes the motion, or it fails, the contract is ratified for its full term. For HOAs, 720.309(2) lets the board contract where the governing documents don't provide for the service, requires the cost to be split per parcel in that case, and gives members the same next-meeting cancellation right. Both Florida sections also build in an exit that every contract must include: an owner who is hearing-impaired or legally blind and doesn't live with a hearing or sighted person, or who receives Supplemental Security Income or food assistance, may discontinue the service without fees and does not pay the related charge. Under the condo statute that exit applies to cable or video service. The HOA statute also bars denying any resident access to a franchised cable provider the resident pays directly. Texas and Colorado give associations general power to make contracts, in Texas Property Code 82.102(a)(5) for condominiums and 204.010(a)(5) for subdivisions covered by chapter 204, and in Colorado's CCIOA at 38-33.3-302(1)(e). The declaration may still require a member vote or cap the amount the board can add to dues, so read it before promising owners anything.

Survey the owners first

A bulk deal forces every owner to pay, including the ones happy with what they have now. Find out who they are before a provider does. Ask four questions: who provides your internet today, what you pay each month including equipment, whether you also pay for TV, and whether you would support a community agreement if it cost less than you pay now. A question the board can copy: 'If the association could provide internet service of at least [speed] to every home for about $[amount] per month, added to your dues, would you support it? Yes / No / Need more information.' Aim for responses from at least half the homes. Report the results at a board meeting, including how many owners said no. That number tells you how hard the vote will be and what the contract has to offer to win them over.

What to ask providers to quote

Use one request for proposal so the bids compare the same things; our guide on writing an HOA request for proposal covers the packet. For bulk service, the bid form should ask for: the per-door price for internet only, and for internet plus video if the board wants that option; the guaranteed download and upload speeds, not the advertised maximum; whether the router or Wi-Fi equipment is included; construction plans and who pays for them; the annual price increase; the term and renewal terms; outage response times and service credits; the price for residents who want a faster tier; and what happens to the wiring when the contract ends. Reject any offer that pays the association in exchange for exclusivity. Federal rules at 47 CFR 76.2000 void exclusive video service clauses in multiple dwelling unit contracts and bar providers subject to the rule from exclusive and graduated revenue sharing arrangements. The rule's definition covers condo buildings and gated communities along with other centrally managed residential developments. In the same 2022 order, the FCC ruled that its cable inside wiring rules bar sale-and-leaseback arrangements in residential buildings, where a provider sells wiring to the owner and leases it back for its own exclusive use. The same order required providers to disclose exclusive marketing arrangements to residents in their marketing.

Run the math over the whole term

The per-door rate in year one is the number salespeople lead with. The board should compare total cost over the full term. Take an 80-home community quoted $55 per door per month for 7 years. Year one costs $52,800. With a 5 percent annual increase, the contract costs about $429,900 over 7 years and ends at $73.71 per door. With the increase capped at 3 percent, the same contract costs about $404,600 and ends at $65.67. That one clause is worth about $25,300. Put every bid on the same sheet with year-one cost, total cost, final-year rate, and guaranteed speed. Then compare the final-year rate to what owners reported paying in the survey. A deal that beats retail in year one and loses to it by year five is a bad deal for the owners who have to keep paying it.

Contract terms worth fighting for

Term. A shorter term lets the board rebid sooner. Florida requires at least 2 years; five to seven is common, and anything with automatic renewal needs a notice window the board puts on its calendar. Price cap. A fixed annual increase, such as 3 percent, rather than 'the provider's standard rate adjustment.' Performance exit. Define an outage, set a response time, attach service credits, and give the association the right to terminate after repeated failures and a written cure period, such as 30 days. Speed upgrades. When the provider raises the speeds on its standard retail plans, bulk homes get the same increase at no added cost. Billing start. Billing begins when service is active at each home, not on the signing date. Wiring. The contract says who owns the inside wiring and conduit at the end of the term, and whether another provider can use them if the association switches. Assignment and insurance. The contract survives a sale of the provider on the same terms, and the provider carries liability insurance naming the association. Our guide on HOA vendor contract red flags lists other clauses to strike.

Notice, the vote and a sample timeline

Month 1: survey. Month 2: request for proposal sent to at least two providers, with a site walk. Month 3: bids compared on one sheet and the leading bid negotiated. Month 4: attorney review, then an owner information meeting with the bid sheet, the survey results and the draft contract available. Month 5: board vote at an open meeting, or a member vote if the declaration requires one. In Florida, put the contract on the agenda of the next regular or special meeting so owners have the cancellation vote the statute gives them. A notice paragraph: 'At its [date] meeting, the board will consider a 5-year agreement with [provider] for internet service to every home at $[amount] per home per month, increasing no more than 3 percent a year, added to the regular assessment. The bid comparison and the draft agreement are available from [contact].' A motion the board can adapt: 'Moved to approve the bulk internet services agreement with [provider] in the form reviewed by the association's attorney dated [date], for a term of [5] years at $[amount] per door per month with annual increases capped at [3] percent, and to authorize the president to sign it.'

Mistakes boards make with bulk deals

Signing the longest term offered because it had the lowest door rate. Leaving the escalator as 'standard adjustments.' Starting billing before the network is built. Forgetting the Florida exemptions and then charging owners the statute excuses. Skipping the survey and learning at the annual meeting that a third of the owners already pay for fiber they like. And not reading the renewal clause until the renewal date has passed. Owners who object usually ask why they have to pay for something they don't use; our guide on whether an HOA can make you pay for cable or internet you don't use answers that question from the owner's side, and it is worth reading before the information meeting.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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