Cell Tower Leases for HOAs & Condo Associations: What You Need to Know

If you’re part of a homeowners association (HOA) or condo association, chances are you’ve either been contacted about a new cell tower lease or are currently managing one. These types of lease agreements are becoming increasingly common, especially for multi-unit residential properties like condominiums, townhomes, and high-rise communities.

Why the growing interest?

Because telecom companies are in a race to upgrade their infrastructure to meet the surging demand for wireless connectivity. And the rooftops of your buildings, along with excess land or utility easements, are prime real estate for these installations.

Whether you’re being approached to sign a new lease, renegotiate an existing agreement, or sell your lease for a lump-sum buyout—this blog post will walk you through what to consider, how to protect your association’s best interests, and how to turn these inquiries into long-term financial wins.

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Why Are HOAs & Condo Associations Being Contacted?

Telecom carriers like Verizon, AT&T, T-Mobile, and tower companies such as Crown Castle and SBA Communications are constantly looking to expand and densify their networks. Condo and HOA buildings—especially mid- to high-rise structures—are ideal candidates for rooftop cell sites because they:

• Are strategically located in densely populated residential areas
• Provide excellent elevation for signal coverage
• Already have the utilities (electricity, fiber) in place
• Can accommodate discreet rooftop installations that are out of sight

In addition, associations are often seen as long-term, stable partners who are less likely to sell or redevelop the property compared to private owners or commercial landlords.

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What Are the Benefits of a Cell Tower Lease for HOAs and Condo Associations?

The most obvious benefit is financial—and it can be a game changer.

Cell tower lease agreements provide a steady stream of income, often with annual rent escalations built in. This passive income can help your association:

• Supplement dues and assessments
• Delay or avoid increasing member dues
• Fund major capital improvement projects
• Build reserves for future maintenance
• Pay off existing debt
• Reduce reliance on special assessments

For many associations, this income is not just “nice to have”—it’s a strategic asset. With the rising costs of insurance, maintenance, and construction, having another income source can significantly improve your association’s financial health.

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How Much Income Can a Cell Site Generate?

Cell site lease income can vary depending on factors like location, equipment size, tenant type (carrier vs. tower company), and competition in the area. However, here’s a general idea of what to expect:

• Rooftop lease: Contact Airwave Advisors to discuss
• Ground lease (e.g., for monopoles): Contact Airwave Advisors to discuss
• Annual increases: Typically 2% to 4% per year
• Lease term: Usually 25 to 30 years with renewals

Over the life of a lease, a well-negotiated agreement could easily generate $500,000 to $1,000,000+ in revenue.

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Should We Sell Our Lease?

This is a common question—and a valid one.

Wireless carriers and third-party companies often approach associations offering a buyout—a lump-sum payment in exchange for the right to collect the rent from the cell site. Depending on your lease terms, they may offer anywhere from $100,000 to over $1 million.

But should you take the deal?

Consider selling your lease if:

• You need immediate capital for a large capital improvement project (roof replacement, elevator upgrade, exterior painting, etc.)
• You want to pay down debt
• You’re trying to avoid a special assessment
• You want to invest in a safer, more diversified portfolio of assets (e.g., CDs, T-bills, or other low-risk investments)

However, it’s important to remember that selling the lease means forfeiting long-term income. In many cases, a buyout offer undervalues the future cash flow of the lease—sometimes by hundreds of thousands of dollars.

This is why it’s essential to consult a cell tower lease expert to evaluate the buyout offer, negotiate on your behalf, and help your association make a fully informed decision.

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What Happens When the Tenant Wants to Expand or Upgrade Their Equipment?

As technology evolves, wireless tenants often need to upgrade or expand their equipment. For rooftop sites, this could mean:

• Adding new antennas
• Installing 5G radios
• Expanding the lease footprint
• Increasing the weight load or modifying the structure

These changes trigger an opportunity to renegotiate terms—often resulting in increased rent or one-time payments to the association.

But here’s the catch: many tenants present these upgrades as minor “maintenance work,” hoping to avoid paying additional compensation.

This is where your association can easily leave money on the table.

By having a lease expert review the proposed changes and the current agreement, you can:

• Ensure the tenant is operating within their lease rights
• Charge appropriate fees for additional equipment
• Renegotiate rent or add escalation clauses
• Require structural studies and insurance upgrades

Every upgrade is a chance to improve the value of the lease—don’t give that away for free.

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What If the Tenant Wants to Renew the Lease? Are We Getting a Good Deal?

When tenants approach your association about renewing an existing lease, they’re typically looking to lock in favorable terms for themselves—often for decades.

They might offer a small rent increase (or none at all) and suggest that it’s a standard agreement.

Here’s the reality: You’re in a strong negotiating position.

Why?

Because relocating a cell site is extremely expensive, time-consuming, and regulated. The tenant is highly incentivized to stay in place, which gives you leverage to:

• Increase rent to match market value
• Update outdated lease language (insurance, liability, rights)
• Add revenue-sharing clauses for subtenants
• Negotiate upfront renewal bonuses
• Shorten automatic renewal terms to maintain future flexibility

Associations often don’t realize they can ask for significantly more than what’s offered. That’s why it’s critical to have someone who knows the telecom industry and HOA dynamics in your corner.

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What Makes Cell Tower Leases Unique for Associations?

HOAs and condo boards have unique responsibilities and decision-making processes. Unlike private property owners, boards must act on behalf of the entire community and comply with governing documents and state laws.

Key considerations include:

• Board authority: Does the board have the authority to enter into or sell a lease without a member vote?
• Member approvals: Will the lease or sale trigger requirements for majority approval?
• Common area usage: Is the proposed lease area classified as a common element or limited common element?
• Insurance and liability: Will the tower or site impact the association’s insurance premiums or coverage?

An experienced advisor can help guide the board through these concerns and work in tandem with legal counsel to ensure all bases are covered.

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Real-Life Example: A Community Win

Let’s say a 150-unit condo association in Southern California had an aging roof and limited reserves. They were approached by a buyer offering $400,000 to purchase their rooftop lease outright.

After contacting us, we can review the lease and would by determine its market value was closer to $650,000. We thereby would have negotiated a better buyout offer, which gave the association enough capital to:

• Replace the entire roof
• Repaint the building exterior
• Add funds to reserves
• Avoid increasing monthly dues

The result? The board avoided a special assessment, preserved harmony in the community, and improved the property value—all while securing top dollar for their lease.

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Partner With a Cell Tower Expert Who Understands HOA Boards

Our President and Founder, Nick G. Foster, is not only a leading expert in cell tower lease negotiations—he’s also a current HOA board member. Nick brings firsthand experience navigating the responsibilities and limitations of serving on a board while balancing the long-term needs of a community.

Whether you’re in the early stages of reviewing a lease, facing pressure to sell, or just unsure what your options are, we’re here to help. At Airwave Advisors, we specialize in representing HOAs and condo associations across the country.

We’ve helped communities:

• Increase monthly rent by 30% to 70%
• Negotiate lump-sum buyouts up to $1 million+
• Secure favorable terms in lease upgrades and renewals
• Protect their property rights and limit liability
• Strengthen their financial health for years to come

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Frequently Asked Questions (FAQ)

Q: Our association has been contacted to sell our lease. Should we sell?
A: It depends. If your association has a pressing capital need—like roof replacement, elevator upgrades, or major debt—you may benefit from selling your lease. But be cautious. Many offers are below market value. Consult a lease advisor to ensure you’re not leaving money on the table.

Q: Our tenant wants to expand or upgrade. What do we do?
A: Treat any expansion as an opportunity. Have the proposed plans reviewed by a cell tower lease expert to make sure your association is compensated fairly and the structure is safe. Don’t approve anything without a formal review.

Q: Our tenant wants to renew the lease. Are we getting a fair deal?
A: Probably not. Tenants often propose minimal rent increases, hoping you’ll accept them. But your association holds the power. With the right strategy, you can increase rent, tighten protections, and improve terms.

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Let’s Maximize Your Lease Together

A cell tower lease can be a valuable financial asset—but only if it’s managed strategically. Whether you’re being approached for a new lease, renegotiating an old one, or considering a buyout offer, we’re here to help you make the most of the opportunity.

Don’t go it alone. Tap into our experience, market data, and negotiation expertise to ensure your HOA or condo association gets the deal it deserves.

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Call Us Today!

(888) 443-5101