Cell tower lease offer UPDATE

[RatherB]

I received an offer in the form of a lease agreement for 1000 sq ft of property at rate of $600 per month.
Seems like a good deal on surface but would like to hear from members who have done this, their experiences.
It’s a five year up to 50 year lease. It’s commercial land behind my business I don’t have any future plans for.
My questions, again, only to those with experience…
Did you attempt to negotiate?
Did you hire an attorney to review the lease?
Where you happy with deal and would you recommend?

 

[Lilly001]

Who is responsible for removal of the tower if the co goes bankrupt?

 

[Waddams]

Quick google search of "cell tower lease rates 2022" shows initial ranges of over a $1000 per month and up.

Not saying to hold out for more money but it might be worth more to them. I'd definitely hire an attorney to review the lease as well.

 

[Hoosier06]

My parents have one on their land. It’s 800+ a month, has an annual Adjustment to match the CPI and they maintain the road. It might be close to 1000 now. It’s in the contract for dismantle at end of contract. It wouldn’t hurt to counter offer. my parents love the passive income. Their only complaints have been from the subcontractors buying tower space accidentally cutting one of their utility lines and through an old septic when they were directional drilling.

 

[2dye4]

I received an offer in the form of a lease agreement for 1000 sq ft of property at rate of $600 per month.
Seems like a good deal on surface but would like to hear from members who have done this, their experiences.
It’s a five year up to 45 year lease. It’s commercial land behind my business I don’t have any future plans for.
My questions, again, only to those with experience…
Did you attempt to negotiate?
Did you hire an attorney to review the lease?
Were you happy with deal and would you recommend?

Seems awful cheap to me for the amount of money they make off of us the customers. I’d say it’s time to gouge them back. Have a guy that has one on his land they offered $900.00 a month and that was 20 years ago.

 

[FootLongDawg]

I would definetly hold out for at least $1000 a month. This will count as income to you and 200 dollars more a month would help pay that tax burden. I should note, I don't know anything about cell phone towers, but from what others have said here, it sounds like the tried to low ball you.

 

[Cmcharles]

What do you think $600 a month will be worth 20-30 years from now? Will you be happy with that payment then?
We are 18 years into a 30 year lease on a Verizon tower for $750 a month. $750 at the start of the lease was a mortgage payment, now it’s a car payment. At the end it’ll be a grocery bill…

 

[DannyW]

Maybe $600 is nice now but in 20-30 years it may not be much. I would tie it to the CPI or some other index to get an annual adjustment. Also, who is insuring the tower for personal injury?

Talk to an attorney...on something that could become a 45-year agreement, you need legal advice.

 

[Todd E]

You're being offered a low amount.

 

[mallardsx2]

I would lease for any less than what I made in a year, then I would retire early….way early…lol

 

[Sixes]

My Dad has one on his land, it's been there for 15 years or so now, ATT owned and no issues getting paid. It pays about 1500+ a month now.

He/we (I will inherit it) agreed to a 50 year extension a couple of years back which includes a 4 percent yearly increase in payment.

Nothing to it, just collect the checks.

It ends up being a lot of monetary value for a very small piece of land.

He routinely (monthly) receives offers to buy out his contract, but he is happy with the monthly stipend. ATT did include a first right of purchase if the land is to be sold or if he was to decide to sell it the contract.

 

[Big7]

Get more.
They got the money.
You only got so much dirt.

 

[georgia_home]

If you sign the contract, but they don’t build, are you locked? Read carefully. put a time limit and earnest money to hold for a limited period of time.

had an offer made. They walked. Get a reasonable price. don’t undersell your place. It would be extra money in retirement.

also, consider they person who runs the tower May sublease. Account for that in your rate.

there are people who specialize in evaluating those kinds of contracts and leases. There is a guy, forget his name, just north of the last Marta station on 400.

 

[The Original Rooster]

There are some consulting companies that specialize in cellular tower contracts like that. Might be worthwhile to talk to one of them? Could save some heartache later.

 

[Anvil Head]

If it is a 5G tower, be prepared to install "filters" on all your electronics and have a lot of PO'd neighbors.

 

[mrs. hornet22]

You will be paying capital gains tax on the $$ you receive.

 

[Jim Baker]

I would have the tower company pay the taxes and provide liability insurance. Something to consider.

 

[westcobbdog]

I received an offer in the form of a lease agreement for 1000 sq ft of property at rate of $600 per month.
Seems like a good deal on surface but would like to hear from members who have done this, their experiences.
It’s a five year up to 45 year lease. It’s commercial land behind my business I don’t have any future plans for.
My questions, again, only to those with experience…
Did you attempt to negotiate?
Did you hire an attorney to review the lease?
Where you happy with deal and would you recommend?

Don't take it without talking to an atty.
Even better if you can find one who has done plenty of cell tower deals. $600 seems low but do t know the variables.
Also make real sure you understand your rights, their rights including g maintenance and their access easement. What county?

 

[RatherB]

Habersham

 

[SwampMoss]

$600 is way to cheap I would at least ask for double that with annual increase.