Currently, many landowners have been or are being contacted by wireless carriers and contractors interested in installing a cell phone tower on their property. More particularly, Verizon has been very active in approaching landowners recently. When you are contacted by one of these companies or contractors, it can be a very exciting and nervous moment for you.
While the idea of a reliable rental stream sounds great, how do you know you are making a smart decision and getting the best deal possible? Well, good news…today Vertical Constants is going to give you 5 insider tips on what to do when you are approached for a new cell tower lease:
- Say “No” To Market Rent: The most important piece of advice we can give you is that most landowners are receiving rental amounts well below what the property is worth to their tenant. For this reason, the average rate in your market is also well below what landowners should be getting paid. On top of this problem, no two properties are exactly the same. Your property is unique and deserves a unique agreement and rent.
- Do Not Set Business Terms First: It is likely that the person you are dealing with will want you to first agree to some terms before they get into negotiating other aspects of the lease. In particular, they want an agreement on the monthly rent and rent escalation provisions. It is important to realize that the amount of monthly rent should correspond with what rights in your property the tenant is demanding you give up, so negotiate your rent at the same time as all other lease provisions.
- Consider the Big Picture: It is easy for landowners to get caught up in the immediate rewards for signing a new cell tower lease. However, landowners should consider the fact that cell tower lease agreements will run for a period of time ranging from 20 years up to 99 years, and that they will most likely not be able to get out of this agreement. So, make sure you get the agreement right from the start!
- Request a Copy of the Lease and Site Plan: Once you are told your property has been selected, request a copy of the lease to review, as well as drawings of where the tenant wants to install the tower, access roads and all utilities. All too often we speak with landowners who have inconvenient roads and utility lines running across their property. However, if you see the drawings up front, you can work with the company to place these road and utility wirings in a location that works best for you!
- Hire a Leasing Expert: The telecom companies will use employees or contractors trained to get you to enter into a bad agreement. The companies are using experts, and so should you! We work with these companies on a daily basis and can bring the experience and knowledge you need to obtain the optimal cell tower lease agreement for you, so call Vertical Consultants today!
In 2016, Vertical Consultants averaged an immediate 322% increase in rents being received by its clients, and since 2010, has been able to assist its clients in the recovery of over 300 years worth of combined underpaid, and, in some cases, unpaid rents and other expenses that were rightfully due to these property owners located throughout North America.
To learn more about our services, visit https://www.celltowerleaseexperts.com or contact Vertical Consultants at info(at)vertical-consultants(dot)com or 877.456.7552.