What to look for when signing a cell tower lease agreement
Cell tower contracts are different from house and business lease contracts. This is because of the specialized utilization of the cell tower which is also referred to as unmanned communication facilities. Unlike the other types of lease, this one is presented by the tenant and not the landlord. As a result, the landlord has to put their signature on the contract which should be done after thoroughly going through the document and understanding every phrase. Below are some pointers to pay attention to before signing a cell tower lease agreement.
Make sure that the leased land is specified in the documents. A lot of the tenants will bargain for more land than what they actually need so that they get a lot of control on the space. Some of them actually end up leasing the extra space to other developers leaving you out on the deal.Do your research to find out the exact amount of space they require for their tower and lease it to them. Bargain to the best of your ability so as to lease them the least amount they may need and to enable you get profits from the rest of the area.Incase they need more land then you ought to charge them at a higher price for them to have it but always account for the extra land in the rent.
Make sure that the lease agreement indicate that the future rent will go up so as to cover yourself incase of an inflation . Renting your land for the cell towers could end up taking years for the lease to expire.Shun away from having a flat rate of payment but ensure that you negotiate on the manner the rent will rise so that you are able to survive inflation. If you ignore this, you might be forced to make losses.
It is recommended that you seek the guidance of an expert before you sign your lease. The tenants will always have the backing of their experts; make certain that you have yours. Utilize your time in looking for specialists who have knowledge in such proceedings and request for their backing. This sort of people have vast knowledge and will offer you excellent counsel on what to stay away from in the contract. They are at the top of their game and have excellent know-how of what you ought to receive from the deal to be profitable.The experts have negotiating skills that will come in handy when pricing your rent helping you capitalize fully on the deal. Follow their advice, and at the end of the deal you will not regret it.