Property owners often focus on rent amounts and end up missing out on significant values in their lease. In doing so, they effectively tell the carriers such as AT&T and Verizon and tower companies (Crown Castle and American Tower) that you as landlord are willing to trade everything else for increased rent.
Unfortunately, in every wireless lease agreement, there are some 15 very significant financial and non-financial terms that must be negotiated. Without knowing which terms are important, the implications of each, what to ask for, how long to ask for, the industry norm, and consequences of each, many landlords come to us after the damage has already been done.
In 2017, a landlord sent us a copy of their lease to review. The landlord recently renewed the lease for $500 per month until 2047. That’s a 30-year commitment for a rent amount so low we seldom see it anymore. The contract with this tower company restricted the landlord from ever selling his/her property without presenting the transaction to the tower company for their approval. They have the choice of interfering with this transaction by “matching” the terms. In reality, this basically destroyed future property value for the landlord because no buyers would be silly enough to spend the time to make a serious offer knowing that the tower company will just intervene. They could do this because the tower company has the right of first refusal. This means no sales are authorized unless and until it is presented to the tower company for their review and match.
There are so many innocent-looking contract terms and clauses that destroy the property values for landlords. Don’t do this alone. Seek help. Send CellWaves your lease and let us review how you could maximize its value before you sign anything else. You, as with all of our other clients, be happy you made the call.