Adding a cell tower to your property is an excellent way to generate additional income. Yet, hundreds of property owners still make the – same old’ – mistakes when it comes to negotiating cell tower contracts – ending up leaving money on the table.
Can you believe that the average landlord throws away over $900,000 of cell tower rental income due to ineffective negotiations? If you’re in the midst of renewing your cell tower lease contract, considering a cell tower lease buyout or planning to sign up a new contract, make sure to check out the following tips to get the maximum revenue out of the deal.
Tip #1: Level The Playing Field
The biggest problem is that property owners approach a cell tower lease negotiation as a DIY project. Something that they can learn by reading a few guides online or watching a few YouTube videos by the “so-called, influencer-style negotiation experts.” The problem with this approach is that most of the information found online is outdated, obsolete or irrelevant to you.
The cell tower companies know this – and take advantage of it. Can you believe that in 2016, the three largest cell carriers generated a whopping $12 billion in revenue, but paid a measly 16% of it to property owners for cell tower rentals?
The culprit here is – undervalued cell tower negotiations.
How to fix it? Don’t make the mistake of doing it alone. You need an expert negotiator at your side. At Tower Genius, we’ve handled thousands of cell tower lease buyout negotiations and provide our clients with the most up to date cell tower lease buyout information. We can help in levelling the playing field, so that you don’t end up drawing the short stick!
Tip #2: Do Not Rush
You might have heard the old saying, “Everything comes to those who are patient.” When it’s time to renew your cell tower lease or sign a new contract, make sure to take your time. Most cell tower companies pressurize you to sign the contract by dangling false deadlines. They intimidate you into accepting an offer by saying that it’s applicable only for a limited time.
Why do they do this? Because when you’re in a hurry to sign the contract, you’re likely to make big mistakes or fail to do your due diligence. Very often, cell tower companies try to play with your emotions. They say that you might lose out on potential rent if you do not agree to renew the contract on their terms. Or they might say that if you don’t sign the offer, they’ll pull the plug on the tower and relocate it elsewhere. In either case, you fear jeopardizing your revenue, so you agree to their contract, even if it isn’t favorable to you.
How to fix it? Remember: You’re in the driver’s seat! And the cell tower company needs you more than you need them. So, take your time and do not let go of the upper hand.
Tip #3: Don’t Be Fooled By Market Rents
When negotiating a cell tower lease contract, don’t be swayed by the term, “market rent.” Unlike a traditional real estate transaction, there isn’t a fixed rent determined by the neighborhood aka market.
How to fix it? Don’t agree to a bad rental agreement that other cell tower landlords near you have signed ten years back. Each cell tower has its own individual value and there is no uniform rent.
A cell tower lease is not a real estate transaction. It is a utility agreement and the rental value solely depends on how valuable the space is to the cell-tower company over time. So, follow these tips and get the maximum value out of your contract.