Experts say the number of mobile phone users will rise to 4.78 billion by 2020. There’s no doubt mobile phone carriers will need more and more cell towers to keep up with the demand.
Did a carrier contact you about a cell tower lease? You might be considering their offer but, aren’t sure about your cell tower lease rates. While there are many factors that influence your rates, it’s best to ask the right questions before signing on the dotted line.
Don’t know what questions to ask the mobile phone carrier? We’ve got you covered.
Here are the top 5 questions you should ask to know if you’re getting the best tower leasing deal.
1. What Is the Duration of the Lease?
The duration of your lease will impact your cell tower income more than you think. The carrier will use your lease duration, location, and type of cell to determine your rate.
2. How Much Is the Monthly Cell Tower Lease Rate?
Before signing on the dotted line, you must ask the carrier your monthly rate. These cell tower lease rates can be up to 15,000 dollars depending on the property, lease term, and carrier. You should compare your offer to other cell tower lease agreements in the area to know if you’re getting the best deal.
3. What Is the Escalation Rate on the Lease?
Escalation rates on cellular tower lease agreements can range from 1 to 8 percent per year. Many landowners don’t understand or pay attention to the escalation rate from their contract.
If you don’t take the escalation rate into consideration before signing the lease, you might get the worst end of the deal. A cell tower consultant can provide advice regarding your contract escalation rate.
4. Do They Offer a Signing Bonus?
Many wireless carriers try to motivate the landowner to sign the contract by offering a signing bonus. Also, companies may offer to reimburse you for your attorney’s fees.
It’s recommended that you ask companies to give a signing bonus, attorney’s fees reimbursement or option payment to reserve the potential lease. Keep in mind that asking for these bonuses may scare the companies away if you ask for too much money.
5. Does the Lease Have a Right of First Refusal Clause?
Most cellular tower agreements have a right of first refusal (ROF) clause. A ROF clause gives the carrier or tower company permission to intervene if a third party is buying the property. Under this clause, the wireless carrier can buy your property at the same terms of the third party offer.
It’s recommended that you consult a cell tower lease consultant to analyze the ROF clause in your contract. The language of many ROF clauses is vague and may endanger your rights. The clause in your contract should pertain to the sale of the lease and only tower operators, owners or lease buyers.
Can You Get the Best Cell Tower Lease Rates?
Yes, you can get the best cell tower lease rates. It will come down to your property, offer, and negotiation. Before contacting a cell tower consulting company, you should learn as much as you can about your offer.
Be sure to ask our 5 must-ask and any other relevant questions. Once you gather all the necessary details, you should consult an expert. They will take a look at your offer and walk you through the process to negotiate your contract.
Want to make sure you’re getting the best tower leasing deal? Contact us today for your free tower leasing consultation.