- Q: What is a new cell tower lease proposal?
A: A proposal is an initial offer from a telecom company to lease a portion of your property for tower installation, including rent, term, and site rights. - Q: What should I do when I first receive a tower lease offer?
A: Do not sign immediately. Review the proposal carefully or have an expert evaluate the rent, terms, and long-term obligations. - Q: Why did they choose my property?
A: Your site likely fills a coverage gap, has favorable elevation, or offers easy access for construction and maintenance. - Q: Is the first offer negotiable?
A: Yes—initial offers are almost always below true value and structured to favor the tower company. - Q: How do I know if the offer is fair?
A: Compare it against similar leases using verified data or AI tools that analyze over 50,000 tower agreements nationwide. - Q: Should I let them perform a site survey?
A: Yes, but only after they sign an option agreement protecting your property rights. - Q: What is an option agreement?
A: It gives the carrier temporary rights to study your property before committing to a full lease. - Q: Can I charge for an option period?
A: Yes—option payments of $500–$5,000 are common, depending on the term length and exclusivity. - Q: How long do option periods usually last?
A: Typically 12–24 months, with potential extensions. Always require written notice before renewal. - Q: Should I get help before signing the option?
A: Absolutely. The option often sets the framework for your future lease—early mistakes are costly. - Q: What’s the typical rent for a new tower lease?
A: Every cell tower site has an individual value. Average rent for new ground leases ranges from $800–$7,000/month; rooftop leases range from $1,200–$8,000/month. - Q: What factors affect initial rent offers?
A: Carrier demand, local tower density, elevation, and available alternatives influence the starting offer. - Q: Can I negotiate higher rent?
A: Yes—tower companies expect negotiation. Data-driven comparisons can justify rates that are over 100% higher. - Q: Are rent rates fixed or adjustable?
A: They’re negotiable. Always include annual escalations of at least 3% or CPI-based increases. - Q: Should I ask for revenue sharing?
A: Yes—negotiate a percentage of subtenant revenue to capture future income growth. - Q: How long is a typical lease term?
A: Most tower leases run 25–50 years, including renewals. Evaluate the total lifetime value, not just year one. - Q: Should rent increase during renewals?
A: Yes—each renewal should reset the rent to the current valuation of the cell site. - Q: What are common rent escalators?
A: A 3% annual increase is the minimum to historically keep up with inflation; otherwise, your rent is eroding. - Q: Can I request back rent if construction is delayed?
A: Yes—define the rent commencement date to avoid open-ended options and devaluing rent. - Q: How does property zoning affect rent?
A: Sites that are hard to zone or replace usually command higher rent due to limited alternatives. - Q: What is the initial term of a tower lease?
A: Typically 5 years, followed by four or five automatic renewals at the tenant’s option. - Q: Should renewals be automatic?
A: No—make renewals contingent on mutual agreement or a rent reset to the true value of the cell site. - Q: What should the lease define about site size?
A: Specify exact boundaries, access roads, and utility easements to avoid expansion without approval. - Q: Who pays property taxes on the leased area?
A: The tenant should pay any taxes or increases related to the tower site. - Q: What about insurance requirements?
A: Require the tenant to maintain liability insurance and list you as an additional insured. - Q: Who handles maintenance?
A: The tenant should maintain all tower equipment, fencing, and grounds within the leased area. - Q: Should the tenant be allowed to sublease?
A: Only with your written consent or if you receive a portion of the sublease revenue. - Q: What is a right of first refusal (ROFR)?
A: It is a clause giving the tenant the right to match any offer if you decide to sell your lease. It reduces the value of your lease and is not required. - Q: Should I include a relocation clause?
A: Yes, allowing you to move the tower if needed for redevelopment, at the tenant’s expense and with your approval. - Q: Can the tenant expand the site later?
A: Only with written consent—limit expansions to protect your future development potential. - Q: Can the tower company access my property anytime?
A: Access should be limited to defined routes and reasonable hours, except for emergencies. - Q: Should I allow 24/7 access?
A: Yes for emergencies, but require notice for non-emergency visits. - Q: Can I use the land around the tower?
A: Yes, as long as it doesn’t interfere with tower operations. Define clear boundaries in the lease. - Q: Can I build near the tower?
A: Only if allowed by local safety and FCC setback requirements. - Q: Who owns improvements made to the property?
A: The tenant owns the tower equipment; permanent structures should revert to you at the end of the lease. - Q: Can I lease to multiple carriers?
A: Usually no, unless your lease preserves your co-location rights as the landlord. - Q: Should I restrict hazardous materials?
A: Yes—prohibit the storage or use of flammable or toxic materials on-site. - Q: Can they install backup generators?
A: Yes, but specify the fuel type, noise limits, and placement location. - Q: Should utilities be separately metered?
A: Yes—require the tenant to pay for all utilities they consume. - Q: Can the tower interfere with other antennas or services?
A: Include a clause requiring immediate mitigation if interference occurs. - Q: Should I have an expert review the lease?
A: Always. Tower leases contain complex terms that affect property rights for decades. - Q: What happens if the tenant damages my property?
A: The tenant should restore and repair all damage at their cost. - Q: Who carries liability for injuries on-site?
A: The tenant should hold you harmless and maintain full liability insurance. - Q: Can I terminate if they breach the lease?
A: Yes—include clear default and termination rights with cure periods. - Q: Should I require performance bonds?
A: Yes, to ensure site restoration if the tenant defaults or abandons the tower. - Q: What if they stop paying rent?
A: Include immediate default clauses allowing eviction or a lien on the equipment. - Q: Do I need environmental protection clauses?
A: Yes—require compliance with environmental laws and responsibility for any cleanup. - Q: Should I record the lease?
A: Only a memorandum of lease should be recorded, not the full document, to protect confidential terms. - Q: Who is responsible for permits and compliance?
A: The tenant must obtain and maintain all zoning, FCC, and safety permits. - Q: Can I be liable for RF exposure?
A: Require the tenant to indemnify you for any radiation or compliance issues and provide you with safety reports. - Q: Are tower leases negotiable?
A: Yes—virtually every term can be negotiated, including rent, duration, and access rights. - Q: How do I know if I have leverage?
A: If your property fills a unique coverage gap or zoning is restrictive, you have strong leverage. - Q: What’s the best time to negotiate?
A: Before signing any option or access agreement—after that, your leverage decreases. - Q: Should I get competing offers?
A: Yes—multiple proposals create leverage and can increase your rent substantially. - Q: Can I negotiate for future rent increases?
A: Yes—include rent resets at each renewal period, for modifications to the tower, or for requests for additional time on the lease. - Q: Should I allow early termination?
A: Only if penalties or buyout payments compensate you for the lost rent. - Q: Is it okay to reject an offer?
A: Yes—many landowners get better offers later, especially if their site remains viable. - Q: What’s a lease proposal review worth?
A: A professional review can uncover hundreds of thousands of dollars in hidden long-term value. - Q: Should I share my other offers with carriers?
A: No—use them as leverage without disclosing the specifics. - Q: How long should negotiations take?
A: Expect several weeks to months; rushing benefits the tenant, not you. - Q: Is lease income taxable?
A: Yes, it’s treated as rental income for federal and state taxes. - Q: Can I depreciate improvements?
A: No, you don’t own the tower equipment, but related site improvements you make may qualify. - Q: Who pays increased property taxes?
A: Require the tenant to reimburse you for any increase caused by the tower. - Q: Are lease payments passive income?
A: Generally yes, but consult your tax advisor for your specific case. - Q: Can I deduct legal or consulting fees?
A: Yes, they are typically treated as business expenses associated with the rental income. - Q: Does leasing affect my property value?
A: Yes—positively if the rent is strong, but negatively if the lease terms are weak or include permanent easements. - Q: Will a tower make it harder to sell my land?
A: It can complicate sales if poorly structured; good leases increase property value. - Q: Can I transfer lease income to an LLC?
A: Yes—many landowners form LLCs for liability protection and tax management. - Q: Should rent be paid monthly or annually?
A: Monthly is standard, but annual prepayment can be negotiated for convenience. - Q: Do I need to report option payments as income?
A: Yes—option payments are taxable in the year they are received. - Q: Can the tower company sell my lease?
A: Yes—many sell or assign leases to other firms; require notice and rent protection clauses. - Q: What is a perpetual easement?
A: It permanently transfers site rights and eliminates future rent—it is generally not advised. - Q: Should I allow lease assignment?
A: Only with your consent, ensuring the new tenant assumes all obligations. - Q: What’s a fair price for selling my lease?
A: Each lease has a different value, but a common multiple is 20 times the annual rent, depending on the term, escalation, and tower importance. - Q: Are buyouts taxable?
A: Yes—they are treated as capital gains or ordinary income depending on the structure of the deal. - Q: Can I keep ownership but sell rent rights?
A: Yes—partial assignments allow you to retain land while monetizing future income. - Q: What happens if I sell my property?
A: Lease rights transfer to the new owner unless otherwise specified. - Q: Do I need the tenant’s consent to sell my property?
A: No, but you must disclose the lease to buyers during the sale process. - Q: What’s the difference between a lease and an easement buyout?
A: A lease maintains landlord control; an easement is a permanent sale of property rights. - Q: Should I ever sell my lease?
A: Only if you need immediate liquidity and have compared the offer to the total long-term value first. - Q: How big is a typical tower site?
A: Usually 2,500–10,000 square feet for monopoles; rooftops need far less space. Give up as little space as possible. - Q: What are typical tower heights?
A: Monopoles are 100–150 feet; lattice towers can be up to 200 feet, depending on zoning. - Q: Will the tower affect nearby buildings?
A: No, if it is built within FCC and local setback rules. - Q: Can towers lower property aesthetics?
A: Possibly; camouflage designs can reduce the visual impact. - Q: Do towers create noise?
A: Minimal—most noise comes from backup generators that are used only occasionally. - Q: Will it interfere with TV or Wi-Fi signals?
A: Properly installed towers shouldn’t interfere with other frequencies. - Q: Who maintains the tower?
A: The tenant is fully responsible for tower and equipment maintenance. - Q: Do towers attract lightning?
A: They are engineered with grounding and lightning protection systems. - Q: What about health and radiation safety?
A: All towers must comply with FCC RF safety standards. Get terms that require the tower company to provide you with safety reports. - Q: Can I require removal of the tower at lease end?
A: Yes—include a restoration clause requiring full removal and site cleanup. - Q: What happens when the lease ends?
A: The tenant must remove all equipment and restore the site unless the lease is renewed. - Q: Can I renew at a higher rent after expiration?
A: Yes—new leases should reflect the individual value of your cell tower site. - Q: Should I include early termination penalties?
A: Yes—to discourage early exits or ensure compensation for lost income. - Q: How can I calculate the 50-year lease value?
A: Multiply the annual rent by the term length, factoring in escalations and subtenant potential. - Q: Do lease terms affect property financing?
A: Yes—banks often evaluate lease quality when approving loans. - Q: What’s the long-term benefit of keeping ownership?
A: You maintain continuous rent growth, future renegotiation power, and control of your property rights. - Q: How do I protect my heirs’ interests?
A: Record lease terms clearly and use trusts or LLCs for succession planning. - Q: Can the lease outlive me?
A: Yes—lease obligations pass to heirs or successors by default. - Q: Should I periodically review my lease?
A: Yes—market conditions change; review every 1-2 years for renegotiation opportunities. - Q: What’s the biggest mistake in new lease proposals?
A: Signing too quickly without professional review or understanding the long-term impact.
