Americans are heavily reliant on their cell phones. Over 95% of Americans own a cell phone, as of January 2018. That number’s been trending upwards for years, meaning it’s just a matter of time until it reaches a full 100%.
Being so reliant on cell phones means there’s an almost unlimited demand for cell phone towers, as well. If you remember using a cell phone in the early 2000s, you don’t have to wonder why.
A lot of property owners are making a respectable income leasing property they own to phone companies. If you’re one of those, and the terms of your lease are coming up, here are 5 tips for negotiating the best deal on your cell tower lease rate.
5 Tips for Getting the Best Cell Tower Lease Rate
Remember, there’s no such thing as a boilerplate business negotiation. Think of these tips for getting the best cell tower lease rates less as ‘connect-the-dots’ and more like a series of motivational Post-It notes.
Investigate The Competition
Market prices are always dictated by supply and demand. If you’re up for a cell tower lease re-negotiation, look into how many cell towers are in your area. If there aren’t many, you can leverage that information to your advantage.
Physical Constraints
If you have a cell tower location in a city, that can work out to your advantage. If your cell tower is the highest in your geographic region, that gives you a lot of bargaining power.
Longevity
Cell tower leases are not short, for a variety of reasons. Mostly, it’s very time and labor intensive to build a new cell tower. It is to a cell company’s advantage to keep a cell tower running as long as possible.
Cell tower leases tend to run between 3 and 5 years. If you’ve successfully completed your previous lease, bring that up. It shows that you’re reliable, which is a major benefit for the cell phone provider.
Understand The Industry
Cell phone companies are dependent on cell towers even if they don’t want to admit it. Without the right coverage, their customers won’t be able to get the service they rely on, and the company’s reputation suffers.
Dig into the business end of the cell phone industry if you’re serious about getting the best cell tower lease rate possible. Find out how many people your cell tower services, as well as its range.
Like any business negotiation, numbers are your friend!
Looking For More Cell Tower Rate Advice?
With cell towers being so profitable, not every offer is going to come from cell phone companies, either. A lot of investors are turning to cell phone towers as a solid investment.
If you currently own a cell tower lease, we can help make sure you’re getting the best rates possible. If you’re a landowner looking to invest in this lucrative trend, we can help with that too!
If you’re looking for expert help on securing the best cell tower lease rate or how to negotiate a lease buyout, contact us today!