Poor cell phone reception and dead zones are not issues you want your tenants and their customers enduring. The proliferation of cell phones has made the office desk phone almost obsolete. With the rise of the cell phone as a primary communication tool, tenants have come to expect reliable network coverage for their premises and related common areas. The challenge for many tenants, however, is that their employees may all use different cellular service providers, with varying levels of coverage.

In most cases, landlords are in the best position to provide the infrastructure for good cell service to their building. In fact, the provision of reliable cell service infrastructure is quickly becoming as vital as other essential and expected utilities, such as electricity or running water. Ideally, cellular infrastructure should be implemented when a building is being constructed or remodeled; however, such infrastructure can be installed at any point.

FACTORS LANDLORDS SHOULD CONSIDER

  • The basics about the property: The type of structure used is dependent on certain basic factors relating to the property. Know your property well before deciding. Is there already a cellular system in place? Will one of the tenants have a business plan with a particular cellular company? Does your building involve condos or any other bifurcated legal structure that could impact who approves a system? The list goes on!
  • Who owns and maintains the system? Cellular systems can be owned by the property owner, a tenant of the building, a third-party company or a cellular carrier. Don't jump to one option without thinking through the ramifications.
  • Who pays for the system? As with ownership, cellular systems can be funded by the owner, a tenant, a third-party company or one or more cellular carriers. Funding and ownership do not have to be the same.
  • Cellular service versus profit: In-building systems are different than rooftop or tower facilities; they only benefit those inside the building. Except in rare situations, the negotiation should not be about who is paying you a license fee, but who is paying for the system.

BOTTOM LINE: Before signing an agreement, consider all factors mentioned above. You do not want to be locked in with a third-party provider before you decide what is best for your property.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.