CELL PHONE TOWER LEASE AGREEMENTS REQUIRE A UNIQUE APPROACH
On behalf of Michael Brooks of Law Offices of Michael A. Brooks on Saturday, August 11, 2018.
It’s unsurprising that the demand for wide-ranging, reliable networks have cell phone companies scrambling for new places to build cell towers. There are reasonable incentives for businesses, property owners and landowners. The additional income and long-term profits make cell phone tower lease agreements tempting.
Despite the upfront benefits, it’s important to consider some issues that may arise. A cell phone tower lease agreement is different than any other standard commercial or residential agreement. Wireless carriers and companies are powerful and well-rehearsed in the world of negotiation.
Cell tower lease agreements request a lot of land
A cell tower company asks for a lot of land, but needing the land is a different story. Oftentimes companies will request 2,500 square feet of land, when it might not be necessary, depending on the cell tower. Over time, they could start expanding into space that wasn’t agreed upon. It’s important to hold your ground and protect those set boundaries.
Additionally, tower companies take as much space as they can get. Crews gradually start to load onto the property, bringing with trucks, lights and loud equipment. The negotiated lease agreement from years ago is now benefiting them more than it is you, or the community.
Cell tower companies can leave at any time
Most cell tower agreements include what’s called an early termination clause. This means they can quit the agreement at any time. On the other hand, you may have signed a 20-year lease agreement with no way out. For this reason, you should avoid providing extended duration on the lease.
In continuation, wireless carriers and tower companies are often able to terminate a lease agreement on short notice. If this occurs, it’s important to negotiate a reasonable termination fee or request a longer notice.
Any type of lease agreement potentially has issues. Cell tower lease agreements tend to have a unique set of dilemmas. They have their own team of experts to help them navigate the complicated process, and so should you. With the right representation and negotiation tools, both parties have an opportunity to come to a reasonable agreement at any stage of the lease.