With years of experience and expertise representing landlords, we’ve accumulated a lot of insider information about cell tower lease buyouts and renewals. We’ve come across dozens of landlords who have failed to maximize the revenue potential from their cell tower leases. While professionals best handle the intricacies of cell tower leases, here are a few dos and don’ts all cell tower landlords should know.
#1: Do Your Research
The cell tower company needs you more than you need them, so conduct your business accordingly. Do your homework, research your neighborhood’s average cell tower lease value, and negotiate accordingly. Do not give into the scare tactics of cell tower company representatives. The better choice is to hire a trusted cell tower lease consultant to represent you and negotiate on your behalf.
#2: Do Sell the Lease Before Selling the Property
If you’re looking to sell a property with a cell tower, ensure that you sell the rights for the lease before selling the property. You can increase the home’s resale value and make bigger profits.
#3: Or Don’t Sell the Cell Tower Lease
Another option is to retain the rights for the cell tower lease while selling your home. You can ensure you continue receiving rent on it and consider a cell site lease buyout later down the line when there is a genuine financial need. While this might seem like a good idea, it is also tricky. You can avoid complications by consulting with a cell tower attorney to help draw up the contract.
#4: Don’t Renew More Than a Year Before Lease Expiration
Cell tower company representatives usually pressure landlords to renew their leases, even when it doesn’t expire for another year. They use scare tactics to pressure landlords to continue the lease under the same conditions. However, holding off on the renewal is smart as rent offers go up substantially closer to the expiration date.
#5: Don’t Fall Prey to Myths and Scare Tactics
Often cell tower company representatives use myths, misinformation, and outright lies to pressure you to renew the contract under unfavorable terms. Don’t fall prey to the following myths:
1. There are too many cell towers in your area, and the company doesn’t need yours.
2. New technologies like satellite cell services will replace cell phones.
3. 5G cell services do not require as many cell towers as before.
None of these statements are true, which is good to know when renegotiating.
#6: Do Ask for a Lease Amendment Clause
When negotiating a lease amendment, include a clause for any material changes to the cell tower. For example, if the cell tower company adds extra antennas, the lease amendment clause can help you enjoy a rental increase.
#7: Do Remember You Hold the Power During Negotiations
During lease renewal negotiations, the cell company might threaten to take down the cell tower if you do not agree to their terms. However, remember that this is a big move logistically and operationally for the cell tower company. They are not likely to go ahead with their threat.
#8: Do Not Sign the Lease Without Reading the Fine Print
Finally, make sure to read the fine print. Don’t sign the lease agreement or renewal clause without reading the fine print. If the document is too technical, get the help of cell tower lease buyout companies. They can help you understand it and decide if it works to your advantage before signing on the dotted line.
Tower Genius is a leading cell tower lease consultant in North America and offers transparent guidance to property owners to help them leverage the maximum value from their wireless assets. Their services include cell tower lease negotiations, cell tower lease buyouts, lease evaluations, lease consulting, and lump sum lease buyouts. Visit https://www.towergenius.com/ for more information.