Tips to consider ahead of signing a cell tower lease agreement
These types of agreements are not the same as that of commercial or residential lease contracts. The reason behind it is that there is a difference with the specific use of the cell towers also known as unmanned contact facilities. The tenant has the mandate to develop the contract and presents it to the landlord which is different from the other lease. It is crucial that the landlord reads everything in that document and comprehends it previous to signing it.Below are some pointers to pay attention to before signing a cell tower lease agreement.
It is important to indicate the amount being leased on the contract. 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.They may have future plans to lease it out to other developers, limiting your profits.It is wise to conduct research to know the exact amount of area they require for the cell tower and rent it to them. Ensure you get a good deal for the amount you are leasing and maximize on the rest of the area to make you extra cash.If by chance they insist on the additional space , make certain that you make the pay for it and indicate it in the legal document.
Ensure that the contract points out that the rent will go up in the years to come because of the chance of economic 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. At the end of the exercise you will notice that you did not make any profit but would have made losses.
It is advised that you look for direction before putting your name on the dotted line.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. If you want to get the most from the lease, you ought to take heed of their advice, and you will be smiling to the bank.