rental rates

by David C
(Malad, Idaho)

I have a cell tower on my property that was installed in 1996. It has no carriers on it and never has had one. It is owned by American Tower. They re-negotiated my contract 4 years ago reducing my monthly rent from $600 per month to $350 per month, extending my lease to 50 years and giving me a 13% revenue sharing when carriers were installed. Also the first month after a tenant was installed my rent would go back up to its original amount.

Now American Towers has contracted with MD7 to re-negotiate my contract again. They are proposing my rent to be $200 per month, $1800 one time signing bonus and a revenue share of 15% for future tenants after the anchor tenant is installed.

I am thinking of two options. One, negotiate with them for a little more and settle. And two, tell them to increase my rent to $1000.00 per month or they can come and get their tower off my land. It has been there for 22 years with no activity. I don't believer they will ever have tenants on that tower. There is an active Verizon tower less about a quarter mile away. On the other side about a quarter mile away there is an old Verizon tower now owned by Union Comm. out of Gillette Wyoming that is vacant.

What are your thoughts on the subject?
David C
Malad Idaho

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Aug 18, 2019
American tower lease rent reduction
by: Lou Ann

American Tower Corporation has had a cell tower on my land for 5 years. They have been paying $400 per month with a recent increase to $440. Now they say since a carrier hasn’t been hooked up on it yet they are losing money and want to reduce my rent to $200 per month. They say if I don’t take this proposal they will take tower down. What are your thoughts on this?

Tower Genius / Editor's Comment: Lou Ann. Thanks for your comment and question. It's important to look at the lease. We can do that for you of course. But see if you can find a Paragraph that pertains to Termination and / or Tower Removal. Then see it says, MAY remove tower or SHALL remove tower... That is a big difference. You don't want to be left with a tower that you are forced to pay to remove by your county or town if American Tower can potentially abandon the tower. If you ask me, $200 per month is not going to break the back of American Tower. Their C-Level executives probably spend more on than that on Martini's at lunch every week.

Feb 07, 2019
My thoughts
by: Stephen

Hello David

I would politely tell them to blow their ridiculous offer out their rear-ends.

Tower Genius

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