Have you recently been contacted about renewing your cell tower lease? Property owners are constantly contacted by telecommunication companies who want to extend lease agreements for years beyond the current lease expiration date.
A renewal offer is the best opportunity to make your agreement a more profitable venture for yourself, both in terms of financial profits and protecting your property. However, do not sign anything until you consult with an expert or you could be missing out on hundreds of thousands of dollars in rent.
As the nation’s leading cell tower lease experts, we have negotiated over $545,000,000 in cell tower rent. Our clients average an immediate increase of 306% — imagine what you would do with 3 times more money. Don’t throw away the same opportunity by signing a bad deal.
Renewing The Agreement
The majority of cell phone companies contact property owners years before the lease is up for renewal. That’s because renewing the lease a year ahead of expiration usually costs them more in both time and money.
If a cell tower lease is not renewed, the cell service provider risks non-availability of their cellular service until a new tower is located. They also must pay for this change in towers. The cost of building a new tower is extraordinary; plus they have the cost of demolishing the older one. Obviously, the tower company wants to avoid these costs.
Additionally, applying for and receiving permits to put up a new tower in a new location takes time. Each week there are news stories about a city or community seeking to block the construction of a new tower. This slows the process for the tower company, and adds to the overall cost.
Best Time To Negotiate
Thanks to the reasons above, a cell tower lease renewal is the perfect time to renegotiate the terms on your lease agreement. This is your opportunity to rectify mistakes in the existing agreement and increase your financial returns for the upcoming lease period.
Keep in mind the following before arriving at a new deal:
- Rates of the existing lease can be revised during the renewal. The rent you seek should also reflect the increase in value of your property over time.
- Consider the length of the lease and the lease renewal period. A thirty-year lease may look attractive but beware of early termination clauses. These clauses give the cell tower companies the right to terminate with very little notice period.
- Take into account your own liability and property insurance throughout the agreement period.
Cell tower lease agreements are tricky to navigate and are chocked full of hidden clauses that are not favorable to the landlord. Navigating through these and narrowing down on a favorable agreement is no easy task.
Why risk a bad lease with big consequences? If you’re considering a cell tower lease renewal, get a free consultation with Vertical Consultants first. We will ensure that you get the most rent and the best terms possible. If that’s in the renewal offer, we will tell you to take it, but we will never tell you to accept less than you deserve.
