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. In exchange to the land leased out to the mobile company, a landowner gets to enjoy the income. The landowner is entitled to earning ancillary income, as the contract can be that offering thousands of dollars, either monthly or annually. The following factors, therefore, affect the rates of leasing.
Location causes significant effect on leasing rates. The value of the land, the average price of the nearby property altogether have an impact on the leasing rate. Leasing rates are also affected when there are preexisting mobile towers around the target land. It is a characteristic of mobile companies to want their towers constructed away from the competitors. 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.
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. No negotiations and low leasing rates are witnessed in those regions which lack the necessary infrastructure.
Leasing rates are also affected by land itself. Mobile companies always prefer those lands that are evenly flat with no barriers. 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.
The consulting groups will help in evaluation of the details producing the maximum value of the land and getting the most appropriate contract.
It is not advisable to be involved in an agreement of a site before knowing the actual value as the cellphone companies can pay you less than expected.