The meaning of cellphone tower lease is a contract agreed upon by a landowner and a targeting mobile company. 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. The landowner is entitled to earning ancillary income, as the contract can be that offering thousands of dollars, either monthly or annually. When determining the leasing rates, the following factors are considered.
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. 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. Due to this reason, the extent of coverage by the towers, or their absence in the location has an impact on the leasing rate. some cities and states have enacted laws that permit the necessities and specified area where these towers can be constructed, affecting the leasing rates.
The construction of cellphone towers require specific infrastructure requirements like the availability of power, roads, telephone lines and roads. The mobile company will need to have some construction of their facility and the need for accessibility to the intended location is imperative. When a particular location lacks the necessary infrastructure, the leasing rates become lower, and there can’t exist even a single negotiation.
The land in particular also can be affecting the leasing rates. Mobile companies always prefer those lands that are evenly flat with no barriers. When there are obstructions like trees, they ought to be removed, and the carrier have to incur these costs. What can also make land more desirable is its ground elevation. 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. A thorough evaluation is important when the landowner submit their property details to consulting bodies.
The consulting groups will help in evaluation of the details producing the maximum value of the land and getting the most appropriate contract.
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.