3 Smart Ways to Maximize the Rental Income of Your Hotel’s Rooftop Cell Tower Lease

3 Smart Ways to Maximize the Rental Income of Your Hotel’s Rooftop Cell Tower Lease

A hotel rooftop is an excellent opportunity for installing a cell tower because it provides building owners with an additional source of revenue. Additionally, as hotels are often among the tallest buildings in towns and cities, there is a huge demand for hotel rooftops to install telecom equipment among cellular service providers.

Whether you already have a rooftop cell phone tower lease in place or have been approached by a carrier for a new lease, Tower Genius can help you negotiate the lease terms. This post shares tips on maximizing the returns from a rooftop cell tower lease at your hotel.

1: Consider Renting Your Rooftop to Multiple Carriers

The first question that most of our clients have is, “How much rental income can we make every month by renting our rooftop to cellular providers?” As a hotel owner, you’ll likely want to look at the numbers to decide if it makes financial sense to rent out your rooftop.

However, there’s no one-size-fits-all answer regarding the income from rooftop leases. The payment you earn from your hotel rooftop cell tower lease depends on several factors, such as:

  • The population density around your hotel
  • Cellphone usage trends among people residing around your hotel
  • The availability of alternative sites

If no alternative sites are available nearby, you can charge premium rental rates, and the cellular company will still be ready to pay you. But, if there are several alternative sites nearby, like another hotel with a bigger tower nearby, it can impact the revenue potential of your rooftop site. In short, your site’s revenue potential depends on how valuable it is to the cellular company.

That said, here’s a tip to maximize the revenue-earning potential of your rooftop: rent it out to more than one tenant. Since a hotel rooftop is likely to be bigger than rooftops of residences, you can rent it out to multiple tenants simultaneously, doubling or tripling your revenue. For example, you can rent it to AT&T, Verizon, and Sprint to increase your rental income.

2: Limit the Tenant’s Rights While Signing the Lease Agreement

When drawing the cell tower lease agreement, make sure that you limit the tenant’s access to modifications. You can include a clause that states that the tenant has to get your permission before modifying or installing new equipment. With these terms, you hold the cards during renewals and future negotiations.

3: Address Access Hours to the Rooftop

Often cell tower companies include a clause in the lease agreement granting them 24-hour access to the rooftop to fix any broken or malfunctioning equipment. While this may seem reasonable on paper, it doesn’t bode well for your hotel’s business.

Imagine a scenario where you’re renting out the penthouse to an exclusive event, only to find that the cellular company has sent technicians to perform noisy maintenance on their equipment. The noises won’t provide the right ambiance for your VIP clients and can make them take their business elsewhere. You must limit access to the rooftop only during standard business hours.

Do not let the telecom company get the better of you by including demanding clauses in the lease agreement. Tower Genius can help you negotiate the terms of your rooftop cell tower lease buyout, ensuring you get the maximum value out of your lease. Call today for a free consultation and learn more about how we help our clients.

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Carriers & Tower Companies Have Their Hired Guns. Shouldn't You?

Negotiating a cell tower lease, trying to figure out what the correct cell tower rent value for your property needs to be, or evaluating the broad range of proposals and offers received by most cell site landlords in 2022 can be very confusing. Connect with Tower Genius or submit your info below, and we'll evaluate your situation, answer your questions and even make a few recommendations you may benefit from.

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