Landlords Biggest Mistake – Lease Extensions
Updated: Nov 11, 2020
Posted on December 23, 2015
The cell industry has been leasing sites for over 20 years across Canada. The cell leases used by most carriers such as Rogers, Telus, Bell and WIND are full of elements that put the landlord at a huge income disadvantage.
Most established leases fix rents to CPI or the lowest comparable that the cell providers can find. Of course they keep all rates out of the public eye – mostly with confidentiality clauses in their leases.
Have you ever tried to find cell rent comparables?
Most landlords just sign off on renewal offers assuming there is not much they can do. Most landlords just don’t have the time or information to negotiate rates every 5 years. A favorite cell carrier tactic is to add lease renewal extensions to the existing lease. Not renewals —- extensions. They create more years for the Carrier to use your site without changes. Always to the advantage of the Carrier. Typical leases of 20 years get extended to 30, 40 even 50 years – using extensions. Usually offered on every term renewal. If leases are extended – they are hard to change in favor of the landlord. Usually only the rate can be adjusted – and then only every five years Our advise ???
NEVER ALLOW LEASE EXTENSIONS.
Let the lease expire and negotiate a new lease on your terms.
This can double the appraised value of your site.
We also do lease appraisals……
Call us for planning strategies.
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