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Video -- Simple Guide To Negotiating Cell Tower Leases

Simplify The Process

For most owners of real estate, whether they are an owner, investor or a manager of a piece of raw land or improved real estate by way of a building or other similar structure, when they are approached with an opportunity to either enter into a new cell tower lease agreement or renegotiate an existing one, the process can seem overly complicated.

Cell tower companies and/or wireless carriers are often throwing out terms, whether those are how much money, via cell tower rents, they will pay or certain non-monetary terms that seem to make the process more difficult than a normal leasing of real estate transaction.

Any negotiation of a cell tower lease agreement, whether it is a new lease or an existing one, can be simplified to the following:

To negotiate a cell tower agreement and generate the most rent or passive income by way of cell tower rent, a real estate owner, investor or developer can be pulled or can push through the negotiations of the cell tower agreement that is being presented to them.

Most times a cell tower company or wireless company has a clear plan in place as to how they wish the back and forth with the real estate owner to go.

When presented with a cell tower lease, the real estate owner is pulled through that agreement. The cell tower company says here’s what you have to agree to, here’s the cell tower rent we’re going to pay you today and going forward, and that is the best we can do.

Furthermore, the cell tower company will proclaim the amount of time they are going to use your property and that they have to get the real estate owner to commit to sometimes up to one hundred years of lease term, while, on the other hand, is not committing to any period that they have to pay the afore-mentioned cell tower rent, and they can terminate the cell tower lease agreement at any time.

The cell tower company will eventually provide an ultimatum that if the real estate owner does not agree to these terms, the cell tower company is going to go somewhere else, placing some real estate owners in positions of virtual duress on what they should do.

However, the real estate owner does have an alternative.

A real estate owner can push back.

That real estate owner can push through the cell tower lease terms and garner terms that benefit that real estate owner today and going forward. This means a real estate owner gets paid fair value for the use of his or her land not only today, but throughout the term of any cell tower agreement. In addition, it means that the real estate owner gets certain commitments and protections from the cell tower company that increase the value of his or her real estate asset.

If a real estate owner gets pulled through a cell tower lease agreement, they will continually get pulled through the life of that cell tower lease.

The cell tower company will continue to come back to the real estate owner and pull them through terms that are beneficial to the cell tower company, and the real estate owner will lose out on rents or passive income that they could otherwise gain.

Don’t be pulled – push back get terms that benefit you and your property for decades in the future.

If you have questions regarding a cell tower lease, contact us today.

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