Did you know that your existing cell tower lease is a gold mine for you? A lot of landowners do not know this but you can get a lot of revenue from renewing your lease. We sat down with industry experts who reveal how you can mine your gold mine for near unlimited passive income.
Why Is Your Existing Tower Lease a Gold Mine?
- Here is the simple answer, it can cost up to $250,000 to replace a cell tower with a new one, which is why most cell tower companies want to renew the lease instead of having it finished. Here are some other reasons:
Cell tower companies will pay you large rent to be the second, third or even fourth company to install their antenna on an existing site because they don’t want to deal with the cost and difficulty of installing a new tower. This can bump up the rent to triple for you.
The lease agreement may say that the cell tower company can cancel it anytime but in reality, it is locked and no company wants to come out of it. So you as a landowner will always have an upper hand.
So now that you know the value of an existing lease, here is how you can keep on making more money from the lease.
- Never extend the terms of the lease because as a landowner, you can get a huge amount of money when the time comes for renewal because no company will want to remove their antennas from your property. Extending the term will help you make a new deal with a new and better rent.
- Never agree to the lease amendments which will harm your property or your ability to sell the lease or the property. You will be asked by a company to amend the cell tower lease in form of letters from companies that hire small antenna companies. Just ignore these and never sign them.
- But make sure that you do agree to the terms that allow you to change the antennas and towers when required. But make sure that these changes are set forth in the amendment. You can get almost 30-100% increase in the rent this way because the more antennas are in your space, the more money you’ll make. Avoid any terms that harm the value of the lease or have the tenant reimburse your legal fees.
- Never allow the main lessee to sublease their tower to any other providers. If they do, they can double or triple the rent but you won’t be getting that revenue because the company let the sublease. Instead, try to do this on your own.
Need Help With Tower Leasing?
Tower leasing agreements are very tricky and most landowners are not aware of how the terms and legal stuff works. This is why they usually end up making a lot less than they could have. If you don’t know the dynamics of this industry, it is better to get help from a tower leasing consultant such as Tower Genius.
The consultants will not only provide you the latest lease rent trends but they will also help you negotiate the best deal from a lease agreement.