How to negotiate better cell site maintenance and liability clauses

Over the life of a given cell site your tenants will need to add, upgrade and expand the equipment used on the cell site. This means, your cell site tenant will need to park, stage and construct outside the lease area and if left unchecked, cell site maintenance can cause a variety of problems for both tenants and landlords.

Poor cell site maintenance terms are one of the most common areas overlooked when negotiating a cell site lease is not having well defined maintenance and liability clauses. 

Based on my expertise in cell tower leases, here are some key strategies landlords can use to negotiate better maintenance and liability clauses:

  1. Clearly define maintenance responsibilities. Specify in detail which party is responsible for maintaining different aspects of the cell tower site, including the tower itself, equipment, fencing, landscaping, access roads, etc. Be as specific as possible to avoid ambiguity.

  2. Require regular inspections and maintenance. Include provisions that mandate the tenant to conduct regular inspections and perform preventative maintenance on a defined schedule. This helps prevent small issues from becoming major problems.

  3. Set standards for repairs. Establish clear timelines and standards for how quickly repairs must be made when issues are identified. Consider including penalties for failure to make timely repairs.

  4. Address environmental concerns. Include clauses that make the tenant responsible for any environmental contamination or hazards caused by their equipment or operations. Require proper disposal of any hazardous materials.

  5. Expand indemnification provisions. Negotiate broad indemnification clauses that protect the landlord from liability related to the tenant's use of the property, including injuries to workers or visitors, property damage, and environmental issues.

  6. Require comprehensive insurance coverage. Specify minimum insurance requirements the tenant must maintain, including general liability, property damage, environmental liability, and workers' compensation. Require the landlord to be named as an additional insured on these policies.

  7. Include a site restoration clause. Require the tenant to restore the property to its original condition upon termination of the lease, including removal of all equipment and structures.

  8. Address technological changes. Include provisions that require the tenant to upgrade or modify equipment to comply with new safety standards or regulations that may emerge over time.

  9. Retain approval rights. Maintain the right to approve any significant changes or additions to equipment or structures on the property.

  10. Consider a performance bond. For larger installations, consider requiring a performance bond to ensure funds are available for site restoration if the tenant defaults.

  11. Address access and security. Clearly define when and how the tenant can access the site, and specify security measures they must maintain to prevent unauthorized access.

    By incorporating these elements into the maintenance and liability clauses, landlords can better protect their interests and ensure the cell tower site is properly maintained throughout the lease term. Remember to have any lease agreement reviewed by a cell site leasing expert experienced in cell tower leases before signing.

    As always, CSA is here to help, if you have questions or need assistance at any time please contact us by email info@cellsiteappraiser.com or call 213-986-7620

Clarence McDowell
10 things property owners can do to attract and secure a wireless lease
Cell site landlord receiving cash from a cell carrier.

Property owners looking to attract and secure a wireless lease for cell site deployment, there are several proactive steps you can take. Here are ten suggestions:

Understand the Market: Educate yourself on the wireless industry and what carriers and tower companies are looking for in a cell site. This includes understanding the technology, coverage needs, and the specific requirements carriers have for cell sites.

Site Promotion: Make the availability of your property known to wireless carriers and tower companies. You can do this by listing your property on industry-specific sites or directly contacting the real estate departments of wireless carriers.

Infrastructure Readiness: Ensure your property has the necessary infrastructure or the ability to support infrastructure, such as access to power and utilities, which are critical for cell site operation. Most crucial in this area is access to high speed fiber internet that is now essential for any new cell tower placement.

Zoning and Permitting: Familiarize yourself with local zoning and permitting processes. Having a site that is pre-zoned for wireless use, or even better, having a pre-approved permit for a cell site can be a major advantage.

Ease of Access: Make sure your property has good access for construction and maintenance. Carriers prefer sites that are easily accessible for their crews. New tower sites will require lifts, cranes and other heavy equipment to install tower apparatus.

Minimal Encumbrances: Clear your property of potential encumbrances that could impact a wireless lease. This includes resolving any legal disputes or liens that might complicate the lease agreement. If you have a loan on your property, you will need to confirm your lender will agree to sign a non-disturbance agreement.

Professional Representation: Consider hiring a consultant or attorney who specializes in wireless leases to negotiate on your behalf. A qualified consultant will have access to the latest lease rates, terms and trends that can help make your property more attractive to potential lessees by crafting favorable lease terms.

Competitive Pricing: Your lease consultant can determine a competitive lease rate based on the type of site, location and market rates but be prepared to negotiate. The carriers typical want to base starting terms between $1,000-$2,000 per month with 2-3% annual escalator so knowing the current market rates for cell site leases in your area is essential.

Flexible Lease Terms: Be flexible with lease terms to accommodate the needs of the wireless carrier or tower company, such as allowing for technology upgrades and subleasing. That said, it’s important you know the true value of your site location before making unneeded concession’s.

Marketing Package: Develop a professional marketing package for your property that includes photos, maps, a description of the site, and any other relevant details like topography, height above average terrain (HAAT), and proximity to utilities.

Securing a wireless lease can be competitive, and it's important to position your property as an optimal choice. Highlighting the features and benefits of your site, being prepared, and understanding the needs of the wireless carriers and tower companies can significantly increase your chances of securing a lease.

Clarence McDowell