If you’re in a cell tower lease right now, it’s possible you’ve been approached by a telecoms company that wants to do a cell site lease buyout. This could be a good deal for you, provided you know how to negotiate properly and protect your interests. After all, you don’t want to end up with the short end of the stick when it’s time to extend or renew the lease.
To avoid landing yourself in a bad situation, there are some specific things you have to do. In this post, we’ll walk you through all you need to know before you begin the lease renewal process. With this information, you’ll have a better chance of getting a fair offer that’ll generate big returns down the road.
How To Make The Cell Tower Lease Renewal Process Work In Your Favor
First, you’ve got to understand that you have immense power when it comes time to negotiate the terms of the cell tower lease renewal. Most wireless carriers test the waters before discussing renewal terms, as it’s wise (on their end) to gauge how the cell tower site owner is feeling about the current deal ahead of time.
If you appear too eager to renew the contract, they may try to lowball you with a bad deal. This is one of the main reasons why you need to hire the best cell tower lease consultants when it’s time to negotiate.
Whether you hire a cell tower lease consultant or not, you should always be wary of initial offers. Do not lock yourself into a lowball deal, as doing so can cause you to miss out on incredible revenue later.
When a wireless carrier puts out an offer, you can come back with a reasonable counteroffer. Often, property owners falsely assume that making a counteroffer will work against their best interests and cause them to lose a deal. But this is rarely the case.
In most situations, the cell tower company needs you more than you need them. If they’re willing to renegotiate and offer a better deal, it’s likely they want to ensure the extension or renewal happens, even if it means losing a few thousand dollars on their end.
Once you and the carrier come to an agreement, you can accept their offer to extend or renew the cell tower lease. Alternatively, you can accept an offer from a third party in the case of a cell tower lease buyout.
This latter option is an excellent choice if you need a lump sum payout immediately to cover debts, buy a property, or put your kids through college. Even if the lease is bought out, you still retain complete ownership of your property—talk about a win-win!
Use The Extension Or Renewal Period To Negotiate A Better Agreement
As they say, hindsight is 20/20. In this case, many property owners will sign lease agreements they think are good at the moment, only to find out they’re not what they seemed later. If you want to continue renting out your property but you don’t want to get taken for a ride, ensure that you use the renewal or extension period to get a fair deal.
If you’re too anxious and you can’t handle the negotiations alone, you can always reach out to Tower Genius. As the best cell tower lease consultants, we can negotiate on your behalf and make things work for you. Contact our experts to learn more about our process and how we can help you!