So, a cell phone carrier or tower company wants to lease your land. Where do you even start in assessing the true value of your property? Most importantly, every property owner must realize that the value of each property is completely specific to that particular address.
Vertical Consultants understands that each new or existing cell tower or rooftop site has both a unique value and impact to the property upon which it will be installed.
A good cell tower or rooftop lease will not only be structured to optimize the value of that agreement, but also will protect the cell tower landlord as well.
Here are vital things to understand when determining the value of your land to the tenant:
- Never accept the first offer! Every initial offer is a standard offer and you and your property are not standard. The value of your lease today and into the future is based upon value of the land not to you, but the value of the use of that land to the tower or telecom company. Remember, the rental amount that you agree to today will bind you for years and years into the future. What Does This Mean? The loss of tremendous value not only on day one of the lease, but all throughout its term.
- A cell tower or rooftop lease is not a sprint, it is a marathon. The cell tower companies are trained to get you to focus on what rent you will receive at the start of the lease, but your focus should be how to structure a cell tower lease that will make sure you are paid based upon the value of the use of property at any given point in time throughout the lease term.
- Remember to receive a share in rent from co-locators/subtenants! You are owed a percentage of the profits if a co-locator/subtenants is using the tower located on your property. An experienced cell tower consultant will ensure that you are negotiating this co-locator term as part of your lease agreement. Also, having a right to co-locator/subtenant revenue is only as good as knowing HOW to draft a revenue share lease provision that will ensure you can collect such rents. After all, being able to enforce the right is just as important as having the right.
- Understand that limiting the amount of land that you lease can set you up to re-enter the cell tower lease to re-negotiate at a later time. In actuality, cell tower companies need a fraction of the land that they request. They are hoping to secure extra land from you now so that they can sublease to other carriers in the years ahead, leading to their added revenue. Keep your land rights, and it will equal more money for you in the future.
- There is no such thing as “CELL TOWER MARKET RENTS”. Every cell tower, every cell tower site and even you yourself are different and have individual characteristics and values. Many landowners quickly mistakenly assume that their land must have the same value as another cell tower landlord’s in the same vicinity. Relying on what others have and, unfortunately, continue to mistakenly agree to, will only get you the same bad lease as they did. It perpetuates the cycle of bad cell tower leases. Good for the cell tower companies, but really bad for you, the landowner.
Obtaining the maximum value for your lease is tied not into what others have agreed to, but it is tied into understanding the value of the use of your particular property to the individual cell tower company using it and the detriment if they cannot.
Most property owners are overwhelmed due to the fact that the tower companies have experts on their side that negotiate cell tower leases every day. They have been trained to lead you in the direction that they want you to go. This can either by acting as your friend or telling you if you do not agree to terms that they will take the cell tower down along with your rents.
These telecom professionals are aware that they have the advantage every time they start to negotiate a deal with a cell tower landlord. Much like the Las Vegas casinos, the odds are always stacked in their favor unless you know their secrets. Vertical Consultants is here to assist you with leveling the playing field and making sure you end up with the best overall cell tower lease possible today and going forward.