More and more frequently the cell tower leasing experts at Vertical Consultants are seeing landowners being approached by their tower tenants with offers to buy out the landowner’s lease. This is often accomplished through the granting of an easement of the leased premises to the tenant in exchange for a lump sum payment. The reason cell tower tenants are pushing to buy out their own cell tower agreements is so the tenant can secure long-term rights to your property and enjoy the additional security that comes with it, as well as to create a means to prevent landowners from selling their rental streams to third-party acquisition companies like BlackDot Wireless and Md7.
When landowners receive these buyout offers, they are often very excited at the prospect of a windfall of cash. Often the proposed lump sum payments are several hundred thousand dollars.
While we understand landowner’s excitement in this potential payout, we want to give you 3 things to consider before agreeing to terms:
- Can you negotiate an even better deal?
The initial offer will be well below the actual value of your cell tower site. It is always worth negotiating with your cell tower tenant because just a couple of phone calls or emails could net you additional tens of thousands of dollars with minimal efforts. To really maximize your buyout price, contact Vertical Consultants today for more information on how we can assist you with your buyout negotiations.
- How long is the easement for?
Generally, the easement you are granting is perpetual, which means you are indefinitely granting the rights to the property where the tower is located, as well as the land where any utilities run. Granting a perpetual easement will fetch you a higher buyout; however, this is not always the best option for landowners. Some landowners prefer to set a fixed amount of time the easement will exist for. For example, you may be able to grant an easement for 20 years. While this may reduce your sale price, it will increase your future options with your property.
- How will this cell tower lease buyout affect my tax returns?
This is a very important aspect of the transaction for you to consider. Our cell tower leasing consultants are not tax experts. As such, we strongly encourage you to consult a tax advisor to see what your tax liabilities will be.
In 2019, Vertical Consultants averaged an immediate 306% 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 http://celltowerleaseexperts.com or contact Vertical Consultants at info(at)vertical-consultants(dot)com or 877.456.7552.