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 value of the land, the average price of the nearby property altogether have an impact on the leasing rate. On the other hand, when there are nearby towers around the target land, affects the leasing 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.
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. No negotiations and low leasing rates are witnessed in those regions which lack the necessary infrastructure.
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. Another factor that can make land more desirable is the ground elevation. 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.
Good advocates with appropriate knowledge about the industry are recommended to those landowners who are willing to rent out their land to mobile company. It is important to have a submission of the site details for proper evaluation by the consulting groups.
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.