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The Truth about Cell Tower Leasing and Rates

by Marleen Daniels

Setting up an agreement for a cell tower lease can often be extremely complex, primarily because most folks do not understand the lingo and contract terms. You are likely curious about the best way to guarantee the particular cell tower rate you receive is at least as much as or higher than the fair market value, (FMV). Many lawyers aren\’t well-informed with regards to cell tower leasing contracts or about the easiest way to receive the best conditions.

If you and your legal counsel have no idea what you\’re getting yourselves into when it comes to cell tower negotiations, you may encounter 3 main problems: 1. The cellular provider pressures you to consent to their rate and terms, which are well under FMV 2. Your lawyer or attorney totally messes up the deal 3. The mobile provider moves on to talking to someone else about a different site

In each of these three situations, you won\’t be getting a fair cell tower rate. The real truth about cellular tower lease rates is that the mobile phone companies would rather that folks stay in the dark in regards to what is actually going on. The reality is that the location acquisition professionals receive massive commission rates for each and every cell tower lease they are able to put in place which is lower than the company\’s budget for the location. Not to mention that the more strongly weighted the conditions of the contract are on the cellular provider\’s side, the acquisition agent gets a whole lot higher commission rates.

Obviously, that is a common practice in a wide variety of fields given that we live in a capitalist economy. But if you want to ensure that you get the best possible cell tower rates for your property, there are some things you need to know about this potentially lucrative business opportunity.

On most occasions property holders and landlords request comparative cell tower leasing information for their local area from a cell tower site expert. They inaccurately assume that it will help them to be able to determine the FMV for a lease. Most mobile providers will likewise use comparison prices as a way to attempt to persuade land owners that they are demanding too much money.

The truth is that the majority of past cell tower leases were poorly negotiated and the land owners received awful terms and rates for their property. Basing your fair market value assessment on poorly negotiated, poor term and rate contracts is not the best solution.

The most practical method for receiving the highest rate and best terms for your mobile tower agreement is to hire someone experienced in negotiating such contracts – someone who will be fighting for your best interests rather than those of the cell phone company.

Never rely on the negotiating skills of a basic lawyer and certainly not those of the cell company\’s lawyers. Acquire trustworthy, experienced help from a person who is an expert in cell tower leases.

A cell tower lease could be a very lucrative undertaking for you. Within the corporate world, cell tower leases are called \”easy income\” since you are able to simply settle-back, relax, and wait for the money to come each month. Although the advantages are fantastic, make sure that you lower your risk, and optimize earnings by getting appropriate legal advice.

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