Cell towers are commonly seen in dozens of locations in cities and in the rural countryside, but a cell tower lease can be full of problems. City leases for cell towers don’t always run smoothly but rural leases and rates seem to be rocky from the get-go. Why is that? Well, the trouble is that there is a lot of land available in the rural parts of the region and that means anywhere is up for grabs – for the right price. So, what do you need to know about rural cell tower lease rates? Why don’t you read on to find out more?
Companies Want 99 Year Leases In Exchange For Higher Lease Rates
A few years ago, tech companies were looking for two year leases for a reasonable amount of rent per month to the landowner, but now, more people want longer lease terms. Why is that? It’s less hassle for them and less money as they don’t usually have to renegotiate over costs. However, 99 year leases for high lease rates in rural areas are not a smart idea because essentially they have control over that land. You’re not getting a bargain when the tech companies have control over your land because it means selling later may be even more difficult. cell tower lease rates can look great, but not when they come with a long-term rental agreement.
Companies Low-Ball Rural Landowners
Another thing you need to be aware of is that tech companies may offer extremely low rental rates in exchange for the land they use. This often happens in rural areas as there’s the feeling that since there’s a lot of land available, landowners will be happy with whatever they’re offered. Sometimes, landowners don’t care what they’re offered as long as they’re getting paid, but if it’s a low amount, they could end up being out-of-pocket. A cell tower lease can be tricky at times and being low-balled by a company is common, but you can’t always afford to accept the low offer. Check here!
Companies Always Want To Negotiate For A Better Deal
cell tower lease rates can be a great windfall for land and property owners, but some companies see rural land as easy pickings. Why is that? Rural areas often have more land available and that means another property owner might be happier with the price offered. Sometimes, the rates will start reasonable for the first two-year period and then when it comes time to negotiate for a renewal, the company will offer a lower amount. They except you to negotiate for a higher price and will try their best to wear you down so that they don’t pay much more than what they were.
Landowners Deliberately Price Low To Get Picked
You want to get a cell tower lease and earn money from your property, but sometimes you can get too carried away and accept an offer that leaves you out-of-pocket. One thing you need to know about cell tower leases and lease rates is that you can deliberately price yourself low enough to get picked but be left receiving nothing at the end of the year. Why is that? You’ll have legal expenses to pay and those can cost far more than the rental income received.
When The Numbers Aren’t Right For You Walk Away
cell tower lease rates aren’t always good, even when you’ve been in a month of negotiation. When that happens and the company isn’t budgeting and you refuse to accept their rental offer, you have to walk away. Why is that? Won’t you be losing money? Would you be happy to accept a price that’s not viable for your property or walk away with some dignity intact? Sometimes the rates don’t increase in rural areas and are actually far lower than what you would except to see in the cities. When that happens and you don’t want to accept the costs, walk away.
Professional Eyes Are Needed
Cell towers probably aren’t your area of expertise and that means you need someone who knows all about those things. You need someone who can read over the legal terms of the contract as well as advise you on the best way to proceed. Hiring a professional is the smart way to approach rural cell tower leases and it may make it easier on you as well. Keep a cell tower lease as simple as possible and get a fair deal. For more information visit: https://www.investopedia.com/ask/answers/122314/if-telecommunication-company-wants-build-tower-my-land-how-much-should-i-charge.asp