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cell tower question #6308576 05/23/16 09:36 PM
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throckmorton_hunter Offline OP
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I have been approached for a cell tower on my land
They are offering via letter - 50 x 50 ft area fenced , 5 year lease , 5 options /5 year each
, Annual rent 10k .. How far could I push them ??

Thoughts ??

Thanks

Re: cell tower question [Re: throckmorton_hunter] #6308666 05/23/16 10:48 PM
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a guy I know has one in central TX, east of Hutto, getting $1500 a month ($18,000/year) if memory serves me and coming up on the 5th year for renewal and already offered going up for the next renewal period. I might be off a little, like $100-200 a month. It might depend on what provider is looking and if there are other providers already in that general area.


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Re: cell tower question [Re: throckmorton_hunter] #6308782 05/23/16 11:57 PM
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It also depends on what is available from your neighbors. If they can go across or just up the road from you then your negotiating power is limited. Happened to a friend of mine. He countered their offer and never heard back. a month later there was a new cell tower 1/4 mile away.

Re: cell tower question [Re: throckmorton_hunter] #6308818 05/24/16 12:15 AM
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But can you put a deer stand in it...... grin


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Re: cell tower question [Re: Tbar] #6308857 05/24/16 12:32 AM
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Originally Posted By: Tbar
But can you put a deer stand in it...... grin


rofl I thought that was going to be the topic of the thread when I clicked on it.

OP $10k a year for 2500 square feet sounds like a deal to me unless it is right next to your house.




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Re: cell tower question [Re: throckmorton_hunter] #6308898 05/24/16 12:53 AM
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Re: cell tower question [Re: throckmorton_hunter] #6308906 05/24/16 12:56 AM
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I heard about a guy that turned down an offer for a tower on his place. He said for the money that he did not want to see the tower all of the time. So the tower company leased a 50' spot on his neighbors place and put the tower on the other side of the fence. Now he gets to enjoy the view of the tower and $0.00.


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Re: cell tower question [Re: throckmorton_hunter] #6308908 05/24/16 12:56 AM
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Originally Posted By: throckmorton_hunter
Annual rent 10k .. How far could I push them ??


One of my fraternity brothers is in this business. Like anything else, it's all about supply and demand. If they really need your location, might be able to demand more. If they have id'ed you and a few others and your #1, you might not be in the best position to negotiate. It's not like a mineral lease where they need you to agree. They have many more options, could be across the street.

Make a counter, see what they say, but be prepared for a possible yes answer. I agree with Searcher.

Good luck!
Charlie

Re: cell tower question [Re: throckmorton_hunter] #6308940 05/24/16 01:12 AM
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There are good deals and bad deals. I know a man who got a tower on his place 15 years ago and bragged to everyone he met what a good deal he cut....."Free lifetime cell phone plan."
And you are going to turn down $50,000.00 over the next five years. Maybe I could give you my friends number and he can negotiate the deal for you. lol


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Re: cell tower question [Re: throckmorton_hunter] #6308961 05/24/16 01:23 AM
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My FIL got a letter from a tower company a few years ago. They stated that they were interested in his place, he never heard from them again. It made me think that they were just looking for options. But I would definitely negotiate naming rights.


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Re: cell tower question [Re: throckmorton_hunter] #6309101 05/24/16 03:44 AM
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I was listening to a communications guy discussing towers a few months ago. In some counties, the tax assessor's office has gotten wise to cell towers and will declare some portion of the land in commercial use, dropping any ag exemption that the portion of the property may have had. When land drops from ag exemptions, the difference between normal and ag taxes can become due retroactive for several years. Find out how the tax office handles it in your area and ask for the tax hit to be added in the initial lease payment.


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Re: cell tower question [Re: throckmorton_hunter] #6309527 05/24/16 03:55 PM
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Make sure they are planning a self supporting tower, no guy wires. They will also need major power and phone cabling, insist on underground cables. They will also need access and egress, at all hours. Plus a gravel road most likely and a parking pad.


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Re: cell tower question [Re: Cast] #6309536 05/24/16 04:00 PM
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Originally Posted By: Cast
Make sure they are planning a self supporting tower, no guy wires. They will also need major power and phone cabling, insist on underground cables. They will also need access and egress, at all hours. Plus a gravel road most likely and a parking pad.


Out of curiosity, why no wires?

Re: cell tower question [Re: krmitchell] #6309563 05/24/16 04:14 PM
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Originally Posted By: rexmitchell
Originally Posted By: Cast
Make sure they are planning a self supporting tower, no guy wires. They will also need major power and phone cabling, insist on underground cables. They will also need access and egress, at all hours. Plus a gravel road most likely and a parking pad.


Out of curiosity, why no wires?


They take up acres and acres of space and you can't mow around them safely. Clip one with the tractor, and you just might be dead. If you must have guys, insist that they are elevated so they don't clothes line you, and insist that they fence around each guy elevator with gravel inside the fence so grass won't grow.

Old tower guy's advice. And take the offer. Once they are in, get the increase.


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Re: cell tower question [Re: throckmorton_hunter] #6312764 05/27/16 12:29 AM
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- Tax liability/increase due to Commercial use is theirs and theirs alone.
- When it is no longer in service, who owns it and who removes it?
- Require Bonding for the removal such that the bonding requirement is part of any future lease assignment or sale.
- Require indemnification.
- it goes on and on...

Re: cell tower question [Re: throckmorton_hunter] #6312813 05/27/16 01:22 AM
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My barber gets $1500/month near Waller, Tx. They offered and he accepted. I have no idea what the terms are other than the monthly fee.


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Re: cell tower question [Re: throckmorton_hunter] #6312858 05/27/16 01:56 AM
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Re: cell tower question [Re: throckmorton_hunter] #6313532 05/27/16 05:39 PM
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$10,000 in hand??? I would take it and hit them for a big increase on the renewal- the tower will already be up.

Re: cell tower question [Re: throckmorton_hunter] #6315220 05/29/16 04:24 PM
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Throckmorton:

If you are able to, get language in your lease that subletting is not allowed without negotiation of additional payments. For example if your deal is with Verizon, it's ok for them to hang whatever they want to but if they want to allow another company to come put some stuff on it then the new company has to agree to lease terms with you (new payment, indemnify you for liability, etc.). I have seen someone be able to get such terms.

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