The 10 Most Common Mistakes Cell Tower Leasing Owners Make

1. Do it yourself. Try to handle lease negotiations on your own. When a property owner is a control freak or tight-fisted, he will cost himself and his family hundreds of thousands of dollars over the decades-long term of the lease.

2. Assume that a lawyer, CPA or real estate agent is sufficient. Unless these professionals work in the wireless industry on a regular basis, critical parts of negotiations will be missed.

3. Trust the person who has contacted you on behalf of the tower builder or buying company. These individuals are salespeople looking to make money for their organizations, not you.

4. US Real Estate “Cap Rates” as Basis for Value. Capitalization rates make several false assumptions, and the use of capitalization rates reflects a person’s lack of experience in the industry.

5. Failing to keep proper records. A poor record can cost the owner rents and the full value of the asset.

6. Use other towers in the area as a base for market rent. Often times, the entire area is severely below the market because the same seller has traded the entire area lower.

7. Not auditing the leased area. Most landlords forget about the leased area and only focus on receiving the monthly rent check

8. Extending your lease out of fear. Extension negotiations on the best time to correct rental rates, which are often well below market at the time.

9. Not developing a long-term plan for your asset. This is a valuable asset that needs to be managed accordingly.

10. Not understanding the real value of the asset. They do not understand the value of the asset in relation to the income it generates.