What to Consider When Leasing a Cellphone Tower Space.
A cellphone tower lease is an agreement agreed upon by a telephone company and the owner of land. It is an agreement signed to lease space by the landowner to a specific cellphone company for a particular period. The landowner, therefore gets to earn income in exchange, as the mobile company gets to pay rent for space. It is a good source of ancillary income for a landowner, as they earn thousands of dollars monthly or annually, depending on the terms. The following factors, therefore, affect the rates of leasing.
Location has a 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. most mobile companies prefer their towers located away from those of other mobile companies. As a result, leasing rate is affected by presence or absence of competitors towers in the region. Various states or cities have set rules that dictate permission requirements or some zones specific to construction of the towers, adding some cost to the rates.
The construction of cellphone towers require specific infrastructure requirements like the availability of power, roads, telephone lines and roads. Accessibility to the intended location is important as the mobile company will require to the construction of the towers. In situation where your location lack these infrastructures, a lower rate will be agreed on, or even no negotiation is done.
The land itself can affect the leasing rates. Mobile companies always prefer those lands that are evenly flat with no barriers. extra cost are incurred by the mobile companies when building their tower, in case they encounter obstructions like trees, therefore the need to remove them. Ground elevation is a key factor that can influence the desirability of a land. Carries not only consider ground elevation, but also other desirable assets appropriate for the construction of the tower.
When one is considering to lease out their land to a mobile company, they are supposed to be advised by their lawyers who have good knowledge in the industry. The landowners are supposed to submit their land information to consulting organizations for an appropriate evaluation.
The consulting organizations will help the landowner to analyze their land details and get the perfect contract by producing the optimum value of the land.
Some cell phone companies can pay way less, so it is not advised to get in any agreement with them before knowing the actual value of your land.