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. 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 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. 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 mobile company will need to have some construction of their facility and the need for accessibility to the intended location is imperative. In situation where your location lack these infrastructures, a lower rate will be agreed on, or even no negotiation is done.
Leasing rates are also affected by land itself. 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. Not only does the ground level is considered, but also the mobile companies would prefer to consider other limiting elements that would be favorable for the construction of a 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.
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.