With more than two-thirds of Americans owning a cell phone, demand for better coverage is growing every day. This means that carriers have a growing need to erect towers.
As a property owner, you can benefit from this by leasing out space on your property. Negotiating cellular tower leasing rates is a skill that not everyone naturally has.
You may be frustrated with your low cell tower lease terms. You’re thinking it would just be easier to take a cell tower lease buyout and have a lump sum of money instead.
This may not be the smartest choice, and here’s why.
What Is a Lease Buyout?
With your current cell tower lease, you receive a monthly income. But what if you need a lump sum now?
A lease buyout will sell the rights to your tower lease proceeds, but not your land. By agreeing to a lease buyout you are giving up control of your cell tower lease.
Pitfalls of Selling Your Lease
You may think that selling your lease is a good option for an immediate influx of cash. The problem is that you may be led to believe facts that just aren’t true.
The Tower Will Be Moved
You will be told that if you don’t agree to a rent reduction that the company will move the tower. In reality, very few towers are decommissioned or moved. Cell towers are expensive to take down and build.
Don’t feel pressured to sell because someone is pressuring you to agree to lower rates.
They Will Market Your Site
The company’s sales person calls you, they give you a compelling pitch. They are going to buy your lease and then market it to other carriers. Then they will split the profits with you.
The problem with this is that there is no reason for a carrier to lease more land if there is already enough space within the property area already leased.
Many buyout firms will tell you that there are no hidden fees. Except that this isn’t always true.
Firms will arrange a fee with you as the seller, and on the back end with their associates. As the seller, you may never know if both of these commissions come out of your purchase price offer.
But if they do, that’s a lower purchase price for you.
Get Assistance with Your Cellular Tower Leasing
Don’t let yourself become fed up with your cellular tower leasing rates. It may be tempting to wash your hands of the whole thing and accept a buyout.
Before you agree to sell your rights to your lease, consider the consequences. The large lump sum is tempting, but you may be giving up more than you think.
Instead of giving up on your lease, you need to negotiate for better rates. This lets you keep your monthly income and control.
Contact us today for expert help in negotiating the best lease rates for your cell tower lease renewal.