In today’s world, landowners are often interested in cell tower rent opportunities as a financially prudent and convenient means if earning passive income. Unfortunately, many landowners have never gone through the cell tower lease process and therefore don’t know what to expect. This leaves them in a vulnerable position during negotiations on rent, with many far too many losing out on getting the value they deserve.
Here are some things to keep in mind when negotiating rent on cell tower leases:
Don’t Trust Everything The Telecommunication Companies Tell You.
Your first step to attaining profitable cell tower rent rates is remembering not to trust everything the telecommunication reps tell you. These individuals assume landowners know little to nothing about cell tower rent deals and rates and often attempt to make one-sided offers. Acting on behalf of the cell tower companies, these reps try to make landowners feel lucky to be offered a deal at all. They will also try to convince you that the portion of the land for the cell tower has little to no value, therefore you should just accept any offer because it’s better than nothing.
Another common trap telecommunication company reps lay is to share “market rents” for similar cell tower lease deals in your area. Don’t be fooled by this though. There is no such thing as market rent. Every single cell tower has an individual value.
Know That Everything Can Be Negotiated.
Another key thing to remember is that everything is negotiable. Some landowners have the preconceived notion that prices are fixed and unmovable. Nothing could be further from the truth.
Remember that the word “negotiation” means “mutual discussion and arrangement of the terms of a transaction or agreement.” The term implies that two parties will decide the nature and scope of an agreement, meaning that changes can be made to any preexisting rates.
As a landowner you’ll want to understand what the property’s perceived value is to the cell phone carrier. This will vary from site to site and phone carrier to phone carrier. In other words, just because your neighbor accepted low rent rates and a bad deal doesn’t mean you have to!
Keep in mind that negotiability pertains not only to the rate you pay, but the terms of the contract and future use. You don’t necessarily have to let the telecommunication company lock you into a yearly contract. If you’re concerned that they will offer substandard service or simply want the opportunity to experiment with other service providers, consider the value of negotiating the extent and terms of your contract so that you can be easily released from it.
Obtain Professional Counsel.
One final strategy that will help you optimize your cell tower negotiation process is conferring with a professional. This is perhaps the only step you can take to ensure you receive the best deal possible and don’t leave money on the table during negotiations. For example, our clients get over 300% more money on average when using our services.
We have over 100 years of combined experience we use to prevent clients from signing bad deals of economic exploitation or general dissatisfaction.
You’ll fare far better with industry experts who know what you can expect in terms of pricing, complications, and contract terms. In short, don’t sign anything until you’ve had a professional consultation!
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