Frequently Asked Questions

General Topics
How is a telecom lease typically structured?
Where does TLA fit in among wireless carriers and tower companies?

Telecom Lease Acquisition
What does "non-recourse" mean?
If my lease is risky, why do you want to buy it?
What are my tax liabilities if I sell my cell site lease?
Do I need to get my cell site tenant's approval before I sell my telecom lease?
I may sell my property in a few years. Can I still sell my telecom lease now?

Telecom Lease Negotiation & Consulting
I have been approached to participate in a Lease Optimization program. What should I do?
What is the fair market rent for my cell tower or rooftop site?
My telecom lease is up for renewal soon. Can you help me get a higher rent?

General Topics

How is a telecom lease typically structured?

Telecom leases for cell sites, cell towers, or rooftop antennas are agreements between a real estate owner and a wireless carrier or a cell tower company. The leases generally have an initial five-year term plus four five-year automatic renewal terms, for a total of twenty-five (25) years. The rent is generally paid monthly or annually, with increases – known as escalators – due either annually or every five years. Most of the leases contain a very one-side cancellation clause that allows a cell site tenant to terminate the lease with as little as thirty (30) days’ notice.

Where does TLA fit in among wireless carriers and tower companies?

Telecom Lease Advisors is not affiliated with any wireless carriers; we are also completely independent from major cell tower companies. If you have entered or are about to enter into a telecom lease or cell tower lease agreement, we can purchase your lease through our Lease Acquisition Program, help you negotiate for favorable terms, or offer general advice and consulting.

Telecom Lease Acquisition

What does "non-recourse" mean?
Our Lease Acquisition Program is a non-recourse transaction, meaning that once the sale is complete, the funds are yours to keep no matter what. This is what makes a lease buyout such an attractive option for many cell site landlords – the landlords no longer have to be concerned about lease cancellation or rent reduction due to changes in the industry or in technology.

If my lease is risky, why do you want to buy it?

Telecom Lease Advisors has a portfolio of leases that is diversified by type (cell tower vs. rooftop antenna), wireless carriers, cell tower companies, tenant, and geography. The more leases we buy, the larger the risk pool becomes. So one lease termination would not affect TLA the way it would affect you.

What are my tax liabilities if I sell my cell site lease?

Our telecom lease acquisition transactions generally qualify for capital gains treatment. Real estate investors can further defer their tax liability by doing a 1031 like-kind exchange. TLA is not a tax advisor and you are strongly advised to consult with your accountant or tax advisor.

Do I need to get my cell site tenant's approval before I sell my telecom lease?

In general, the answer is no. However, if your cell site tenant has a "Right of First Refusal" clause in the lease, or if the lease assignment requires consent, the transaction may require approval. We can review your lease and make that determination.

I may sell my property in a few years. Can I still sell my telecom lease now?

YES. The cell site lease acquisition will not change the ownership of the property as a whole. You are free to sell your property at any time, and still keep the money that you received from TLA.

Telecom Lease Negotiation & Consulting

I have been approached to participate in a Lease Optimization program. What should I do?

Lease Optimization is a fancy name for reducing your telecom lease rent. Before you agree to the new terms, talk to TLA so we can help you assess the offer and recommend a course of action.

What is the fair market rent for my cell tower or rooftop site?

The rent that you receive is determined by a host of factors such as the property’s elevation, its proximity to hotspots and major thoroughfares, and your tenant’s coverage needs. This information isn’t readily available to the average cell site landlord, but TLA has reviewed thousands of leases, and has the knowledge and experience to help make that determination.

My telecom lease is up for renewal soon. Can you help me get a higher rent?

Absolutely! We can begin by reviewing your current lease and comparing it against like leases. Give us a call to begin the process.