Cellular Tower Lease Renegotiations

If you havent been approached yet, you are going to probably have someone come up

and talk to you regarding your cell phone tower contract and lease renegotiations. It is important that even though you want to protect your income from the agreement that you remember that the cell phone company wants to protect their interests too. Flexibility of terms is all part of the benefit for both parties involved. The demands for service that are placed on mobile device companies continue to expand, and with more people than ever operating cell phones, the companies need to update their technology frequently. Along with that technology comes the need to also renegotiate land contracts to enable them to stay ahead of their competition.

Operators have to constantly invest in new technology as it comes along to also provide the best service to those customers who rely on those companies. Even though there are more customers than ever before who use cell phones, they are paying less for their service overall. It used to be that cell phones were only for the rich who could afford the expensive service and devices. Operators can not control the cost of keeping up with new technology, and they also can not control the decreasing cost of service plans, so they have to find other ways to control their expenses. One of the biggest expenses for these companies is cellular tower site rent.

Operators that are building new cell sites are putting rent structures into place that are much more flexible than before, and sometimes their lease rate for new lease renegotiations is 80% less than what they were paying previously for some of their sites. These operators are also carefully evaluating their current cellular tower sites to determine which ones are no longer necessary for maintaining the integrity of the network, and an important factor in their decisions regarding which ones to keep and which not to is the cost of the rent they pay land owners for the sites. Land owners who are able to work together with operators to create financial terms that are less constraining are more likely to have guaranteed cellular tower site rent income for years to come, thanks to successful lease renegotiations.

Dont lose sight of the fact that companies need to benefit from leasing your land just like you do otherwise, why would they bother to rent the land from you anymore? It is best to contact professionals known as vertical real estate agents to help you in lease renegotiations so that you understand what is included in the terms to avoid confusion and frustration later.

by: Remus Lupin

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