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:
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.
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.
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.
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.
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.
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.
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.
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.
Retain approval rights. Maintain the right to approve any significant changes or additions to equipment or structures on the property.
Consider a performance bond. For larger installations, consider requiring a performance bond to ensure funds are available for site restoration if the tenant defaults.
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