Factors to Consider When Signing Cell Phone Tower Lease.
A cellphone tower lease is an agreement agreed upon by a telephone company and the owner of land. It is a contract to give away land by a landlord, to a particular mobile company interested in the land for a span of time. Earning income is one of the benefits the landowner gets, in exchange for the land they lease out to the mobile company. Depending on the terms, the landowner is entitled to thousands of dollars, either annually or monthly, as it is a good source of ancillary income. The preceding variables are thus limiting factor in determining leasing rates.
Location causes significant effect on leasing rates. The average price of property nearby, value of the land all have an impact on the rates altogether. Besides, the location of nearby tower, around the target land, has an effect too on the rates. It is a characteristic of mobile companies to want their towers constructed away from the competitors. Due to this reason, the extent of coverage by the towers, or their absence in the location has an impact on the leasing rate. Different states or cities have permitting requirements or specific zoning that can add additional cost to the rates.
Specific infrastructure necessities are required for the construction of cellphone towers like water, power, roads and telephone lines. The construction of the towers will need construction. Therefore it is important that the location is accessible. When a particular location lacks the necessary infrastructure, the leasing rates become lower, and there can’t exist even a single negotiation.
The land itself can affect the leasing rates. The best land of choice by cellphone companies to construct their tower is that which is flat with no obstacles. With the presence of some obstructions like trees, the mobile companies will have to remove them, thereby incurring additional costs. What can also make land more desirable is its ground elevation. Mobile companies not only prefer that land with ground elevation, but also look into other factors that that make it appropriate for tower construction.
In case one is considering renting out their land to a cell phone company, they ought to have an advocate who knows the industry. The landowners are supposed to submit their land information to consulting organizations for an appropriate evaluation.
They will help you produce the maximum value of the land and getting the best agreement.
It is not proper to get involved in a contract of land leasing when you don’t know the actual value of the land as some cellphone companies can pay way less.