10 Mistakes Cell Site Landowners Make
We have identified the most common mistakes that Landowners make regarding theirCell Tower Lease.
1. Handle own transaction.
The “Do-it-Yourselfer” will try to negotiate these complex transactions in the same manner they would negotiate a car purchase.
They only learn of their mistakes years later when it’s too late.
Fact, these agreements are very complex commercial documents and last for decades.
2. Hire an Attorney or CPA to negotiate and review the agreement.
Professionals who do not make their liveli¬hood in Cellular industry are at a disadvantage.
They will spend many hours just trying to learn the industry and they will still not have the right answers you need.
In many cases, they will actually cause you to lose the opportunity due to their lack of understanding.
3. Trust the Tower Company or Wireless Carrier’s representative.
Anyone from a Cell Tower Company, Wireless Carrier or finance company who contacts you with an offer is a paid employee of that organization.
They are not there to help you in any way.
10 Reasons to Hire a Consultant
Here are 10 reasons why you might want to consider hiring a professional Consultant regarding your Cell Tower Lease
1. Cell Tower Education & Experience.
You don't need to know everything about your Cell Tower Lease if you hire a Cell Tower Consultant who does.
Why not hire a person with vast industry experience? Is it worth the risk not to?
2. Cell Tower Consultants are Buffers.
If negotiating a new Cell Tower Lease or an existing one, your Consultant will keep the other party at bay, preventing them from biting or nipping at your heels.
Your Cell Tower Consultant will filter the false information out and make sense of all the information.
3. Cell Tower Industry Knowledge of the Carriers.
Consultants either possess intimate knowledge or they know where to find the pertinent information.
They will identify comparable market data and point you in the direction to make sound decisions.
Top 5 Risks of Owning a Cell Tower Lease
1. Viability of the Tenant(s) occupying the Tower Site.
How long will this Tenant be in business?
Are they a Tier 1, Tier 2 or Tier 3 Tenant?
Is there a likelihood of acquisition or increased competition from other providers?
These are just a few areas that affect the long-term viability of a Tenant.
2. Termination Risk.
The Leaseholder should carefully assess the termination rights of the lease tenant.
The Termination Section of the lease will outline the rights of the parties to terminate the lease.
In most cases, it will favor the tenant.
Unfortunately, this really must be the case to ensure long-term growth in the industry.
If the leases were guaranteed, every Carrier would face bankruptcy should the technology change, making Cell Towers obsolete.
Top Five Reasons Not to Represent Yourself
1. You are on your own.
You will be dealing with professionals who do this for a living on a daily basis.
You are a novice being forced into an unfamiliar and unfriendly environment.
Having a professional that knows the lay of the land is a benefit that will weigh in your favor.
2. Even the smartest people do not understand the industry system.
Not knowing how things works only helps the other side.
Every company runs their programs differently.
If you don’t know how they do things, what their tendencies are, and what are their hot buttons,
you will lose valuable negotiating advantages.