Actions

Can your landlord force you to use their internet and TV provider?

Renters in one community say they don't want to switch plans.
Cable TV prices are going up in 2020—here’s what you need to know
Posted
and last updated

Most of us have so many options these days when it comes to internet and TV service. You have cable and fiber to choose from, and maybe a mobile hotspot like T-Mobile or Verizon.

But some renters are now being told they no longer have those options and a growing number of them are speaking out about their frustration. Jean Nemchin is one of them.

As a mobile home resident, she watches every dollar these days, from how much water she uses to how much she pays for internet and streaming TV. She says she found an inexpensive internet plan that works perfectly for her.

But she was surprised to receive a letter from the landlord of her mobile home community explaining that everyone is now required to sign up for Spectrum internet and cable.

"They would be billing us $70 a month," she said.

Nemchin says she currently has a discount deal that gives her internet for just $39 a month, and says she streams several TV services for free.

When Nemchin told the complex's manager that she didn't want to switch, she couldn't believe the response.

"I asked for an opt-out clause, and they said no, it was a mandatory fee," she said.

Bulk billing can save money, but with a catch

It's called bulk billing, or in some cases, "forced internet."

These are billing arrangements for people who live in apartments or other combined housing units, for services like cable and internet. It is legal, but the Federal Communications Commission is exploring new rules on bulk billing.

FCC chairwoman Jessica Rosenworcel has proposed a plan that would allow tenants "to opt out of bulk billing arrangements," and use the service of their choice.

Organizations like the Bulk Broadband Alliance, however, are pushing back. On its website, it claims bulk billing significantly lowers costs compared to individual retail plans, and says complexes could not offer the low rates if only a small percentage of renters participated.

We checked with attorney Danny Karon of the platform Your Lovable Lawyer.He said one issue is that many complexes can't accommodate multiple vendors.

"The vendors put in bids and the board and its wisdom, on behalf of the tenants or the residents, decides which vendor is going to provide the best product for the best cost," he said.

Complex will not bend rules

We contacted the owners of Nemchin's mobile home community, Flagship Communities REIT, to see if there is any way residents can opt out of this if they already have Verizon, T-Mobile, or another internet provider A spokeswoman said that is not possible.

In a statement, she said, "We do our very best to provide services and amenities to our residents that are above and beyond what our competitors offer and that are in keeping with surrounding market rates. We negotiated a much-reduced cost for high-speed Spectrum Internet and TV that includes over 70 channels. In order to secure this reduced rate, we are required to include every home in our community. With this new amenity, our residents are saving a minimum of 40% if they were to secure this service on their own, and in many cases, they are saving 50-60% on their previous monthly costs.”

She also said the complex does take economic hardship into account if a tenant cannot pay their monthly bills.

Nemchin says not having a choice doesn't feel right.

"I don't think anyone should be forced to pay for something that's not a necessity," she said.

She and several other tenants now plan to speak with a lawyer about what options they may have.

But until the FCC changes the rules, be sure to ask about your options when you sign a lease, so you don't waste your money.

__________________________________________

"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").

Follow John:

For more consumer news and money saving advice, go to www.dontwasteyourmoney.com