Are you a private property owner who has signed a lease with a cell tower tenant? Is it time for cell tower lease renewal? Maybe your tenant is pressuring you to extend the renewal at an unreasonable price, or they are offering you an offer that sounds too good.
Whatever the situation, it’s always better to be safe than sorry. In this post, we share the top negotiation facts you should know before extending your cell phone tower lease.
1. The Cell Tower Tenants Work for Their Benefit and Not for You
Cell phone tower tenants are billion-dollar companies with deep pockets. These large organizations have a hoard of lawyers, real estate agents, and negotiation experts who work as a team to ensure that the lease works to the company’s benefit. They even hire expert negotiation companies like BlackDot, MD7, and others to ensure that they get maximum profits from the renewal.
Some cell companies even contact landlords years before the renewal expiry date to ensure that they get the best deal. While this may be the best deal for the cellphone company, it doesn’t necessarily mean it’s the best deal for you as a landlord. So, make sure that you’re not pressured to choose the first offer the tenant gives you.
Keep in mind that the tenant requires you more than you need them. So, you hold the upper hand in negotiations.
2. Cell Tower Tenants Will Try to Extract Favorable Rights for Them During Lease Renewal
During the cell tower lease renewal, the tenant will try to place more restrictions on landlords and extract favorable rights for them. Most landlords agree to these terms and conditions without reading the cell phone tower lease information. They conform to these restrictions as they fear losing their income stream.
Generally, cell tower lease documents contain over 25 sections drafted by a team of expert attorneys. It’s difficult for the average person to make sense of this complicated legal document. We recommend hiring cell tower lease experts who work with you and getting the lease extension modified in your best interests.
3. Cell Tower Tenants Rarely Share the Full Picture with You
Is the cell tower on your land making a lot of money for the tenant? Or do they have alternative locations nearby for a reduced rental fee? You need to know this information before negotiating the terms and conditions of the lease renewal.
Unfortunately, cell phone tower tenants rarely share this information with landlords. Landlords are kept in the dark regarding the status of their lease, and they find it difficult to decide whether they should negotiate the best deal or not.
It Pays to Be Extra Cautious Before Extending the Cell Tower Lease Agreement
When you commit to a renewed lease, you’re committing your land for several decades. So, you must sign a deal that offers maximum profits. When you enter a bad deal, you risk the following:
- Undervalued rent that could end up losing millions of dollars if you get underpaid
- Increased risk to your property because you have given unlimited rights to the tenant
- Devaluation of the overall value of your property
Ensure that the renewal offers the best value to you. You can work with cell tower lease experts to handle the negotiations on your behalf to get the maximum value out of the lease agreement.