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Resolving Disputes with Cell Tower Operators 

Dispute resolution arises from issues between property owners and cell tower operators. Often, these issues have been problematic for an extended period, making timely resolution crucial. If you're experiencing challenges with your cell tower lease, JP Tower Consulting is here to help. 

Contact JP Tower Consulting today for expert assistance in resolving your cell tower disputes. 

Addressing Encroachment Issues 

Encroachment occurs when a cell tower operator uses space beyond what’s leased. This issue, though not common, requires property owners to be aware of the exact leased area. Tower companies may rectify this in the next agreement, often without the property owner's knowledge. It's essential to have an attorney review the contract if you suspect encroachment. Another form of encroachment involves carriers installing fiber outside the easement. This can be identified through a survey, as carriers may take shortcuts to be cost-effective. Ensuring that all installations comply with the lease terms protects your property rights. 

Ensure your property rights are protected. Schedule a contract review with JP Tower Consulting today. 

Handling Mislocated Towers and Other Disputes 

In some cases, towers have been built on the wrong property. When this occurs, it often leads to substantial renegotiations, especially if the tower hosts multiple carriers. Additionally, issues such as non-escalating leases, missing revenue share payments, or missed payments can arise. These disputes can significantly impact your revenue and property value. It’s advisable to have a consultant handle these disputes to ensure they are resolved effectively. 

Don't let disputes affect your property value. Reach out to JP Tower Consulting for professional dispute resolution services. 

Dispute Resolution FAQs

  • What is my cell tower lease worth?
    The value of your lease depends on several factors. If it has over 15 years left and escalates at 3% annually, its market value is roughly 19 times the annual rent. However, lower escalations or a Right of First Refusal (ROFR) can decrease its value. For leases within 15 years of expiration, tenant composition and lease duration are critical. Closer expiration dates increase value, especially with multiple carriers. Sites with less than 5 years left are valued based on a multiple of what the perceived negotiated rent would be at final lease expiration. While a site under 2 years from expiration is based more on a multiple of tower cash flow.
  • How long will the process take to sell my tower lease?
    The timeline for closing depends on any title defects and how quickly attorney redlines are resolved. It's crucial to clear any lines, judgments, or back taxes before starting the process to sell your lease to avoid complications. If there's a mortgage, discuss an SNDA with the lender as it's often required for closing, especially if the loan amount matches or exceeds the purchase price. Properties without a ROFR are simpler to transact. Typically, closing takes 3-6 months, but unforeseen issues might extend it beyond a year, especially with ongoing negotiations between attorneys.
  • When is the best time to sell my tower lease?
    Consider selling your lease if it has less than 10 years remaining, as it's often valued differently by tower and third-party buyout companies. Another opportune moment is just before or after an escalation hit if your lease is long-term. Ensure you have a plan for the proceeds before selling.
  • Should I have an attorney review this lease buyout?
    Absolutely, I recommend getting legal advice. If you sell the property without proper consideration for the tower lease, it could complicate the sale or burden the buyer with unexpected costs like property taxes. That’s why you’d want to account for a reimbursement for property taxes so a future buyer wouldn’t be on the hook for taxes on a tower they receive no benefit from. Contract terms will always favor the tower company and hiring a telecom attorney for that piece of mind is crucial.
  • How long is the buyout for?
    Lease buyouts are often structured as perpetual or 99-year easements. If you prefer shorter terms, third-party buyout companies offer options with 50- or 60-year easements.
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