What Co-Tenancy Fees Are
A co-tenancy fee (also called a co-location fee) is an additional monthly rent payment to the property owner each time a new carrier is added to a tower on their property. The tower company charges the new carrier a co-location fee — typically $1,000-2,500/month — for the right to use the tower. Without a co-tenancy provision in your lease, 100% of that revenue goes to the tower company.
A co-tenancy provision changes this by requiring the tower company to share a portion of the co-location revenue with you, or by specifying a fixed additional rent amount per co-tenant. Market-standard provisions pay property owners $200-600/month per additional carrier, depending on market and negotiation quality.
How to Find Out If Your Tower Has Multiple Tenants
You can check whether your tower has multiple carriers in several ways: look for multiple equipment shelters or cabinets at the base; look for different carrier logos or equipment brands; check carrier coverage maps to see which carriers show strong signal at your tower's location; or ask your tower company directly — they are generally required to disclose co-tenants upon request.
How to Add Co-Tenancy Provisions
Co-tenancy provisions are most effectively added at lease renewal, when the entire lease is being renegotiated. They can also sometimes be added mid-lease when the tower company requests a new co-tenancy, in exchange for your consent to the co-location.
If a second carrier is added to your tower and your lease does not include a co-tenancy provision, contact us immediately. A new co-tenant addition creates a window for negotiating a lease modification that includes future co-tenancy fees.
Do you have multiple carriers on your tower but no co-tenancy fee? A free review identifies your options.
Free Co-Tenancy Review