Leasing Rates for Cell Phone Towers

Just like when you are determining the correct value for your home, the same idea applies to cell tower lease rates. The value is affected by size, quality, neighborhood, age, style, color, comparable sales etc. However, there are few more things to keep in mind when leasing a cell tower site. Cell tower involves technology, legal, engineering and wireless carrier marketing. It is also important to note that a single site is largely dependent on a much larger cellular network.

Why is a cell site needed? In a time where mobile comes first, there are many reasons why cell sites are needed. To name a few, cell sites can reduce excessive dropped calls, poor quality phone calls, increase data download speeds, radio frequency engineering department usually builds additional sites because of new construction in homes, businesses, or venues and data capacity can be significantly improved so that wireless users can have faster data connections for audio/video uses.

A cell tower lease is an agreement between two parties. The agreement is based on the cellular provider’s approval to operate equipment on the property owner’s land in exchange for rent.

How do you determine your Lease Rate?

Just like real estate, cell tower lease rates are variable based on location. For some property owners, rental fees from a single cellular provider can range from  $150,000 in a single year to barely $100 per month.

Cell tower lease rates are essentially based on these 3 factors:

1.     Cell Tower Lease Types

2.     Location of the Cell Site

3.     New Technologies

Cell Tower Lease Types:

Cell Tower Ground Lease – This is a standard lease agreement between a cellular provider and a property owner. This agreement specifies how much land will be dedicated to the construction of the cell site and the contract provides the wireless operator permission to access the lease premises. Click here for further details: https://www.bslassociation.org/what-to-look-for-in-a-cell-tower-lease-consultant/

Lease Expansions – This type of cell tower lease agreement occurs when a party wants to expand the agreed-upon area from the original ground lease. This agreement typically applies when there is a plan for area expansion and/or equipment upgrade.

Additional Ground Space Lease – Unlike a lease expansion, this lease involves leasing a completely new section of land to a separate carrier.

Tower Collocation Lease – This type of lease is used when a carrier wants to utilize the cell tower and ground space on an existing cell tower already owned by another wireless carrier or tower company.

Rooftop Cell Sites of Commercial – These cell towers are antennas installed on commercial building rooftops. Rooftop sites tend to be popular in the metropolitan areas where there are many tall buildings.

Location of the Cell Site

In tightly packed urban areas, cellular rents are naturally higher. Why? There’s competition. This can put cellular providers and tower companies in a critical state because any delays in Internet connectivity for their customers will ultimately result in a loss of profit.

New Technologies

Small cells, such as microcells, are beginning to become a more favorable option for cellular providers, as they are more efficient, less costly, and somewhat easier to implement in a variety of locations. Microcells are most popular in urban areas where open space is limited. Check here!

References:

https://www.landmarkdividend.com/cell-tower-lease-rates-explained/

https://cellwaves.net/cell-tower-lease-rates/

What to Look for in a Cell Tower Lease Consultant

You can never underestimate the role of cell tower lease contractors in helping you get an excellent cell tower lease deal. Without them in the equation, most property owners will probably end up getting poor deals.

Do you know that in 2018 alone, some of the biggest cell tower companies made over 3 billion dollars in revenue? And 85% of this revenue was their profit.

Amazing right? But the owners of the properties that were used for these cell towers got just 8 to 12% of the generated revenue. So, the next time you are trying to lease out your property to a cell tower, you need to contact a consultant.

Cell tower lease consultants are experts who understand the nitty-gritty of a cell tower lease deal. They know every piece of the puzzle and guide you through the financial, legal, and development aspects of a cell tower deal.

So, if you are planning to hire a cell tower lease consultant for your next deal, here are some of the things to look out for;

#1. Track Records

One of the most important things you should check out before hiring a cell tower lease consultant is their track records. The track records should show how many clients they were able to increase their cell tower lease in a year.

Most times, a consultant that doesn’t have anything to offer may try to convince. But always demand results. Otherwise, you may hire the wrong person.

#2. Expertise

There’s a famous Latin maxim that states “Nemo dat quod non habet” meaning you can’t give what you don’t have. If you want to get the best from your cell tower lease deal, you need to work with an expert. If possible, discuss with people around you for referral…

#3. Experience

As a rule, hire a cell tower lease consultant who has spent several years in the industry. Trust me, getting a juicy cell tower lease deal is complicated, and it requires a wealth of experience. Click here!

#4. Resources

The cell tower consultant you are hiring should have unrestricted access to resources. They should have a database of the different cell sites in your area, including lease value, network dependency, and alternative to cell tower companies that are willing to lease your property at a higher rate.

#5. Credibility

In the words of Warren Buffet, “honesty is an expensive gift and don’t expect if from cheap people.” it’s essential to consider the credibility of a cell tower consultant before hiring one.

Read about the consultant, check different review platforms to know what other people are saying about them.

#6. References

This is one of the most important factors to consider when hiring a cell tower consultant. Ask the consultant to provide contacts of property owners they helped get a great cell tower lease deal. With this, you can determine if the consultant you are hiring is reliable or not.

These are the factors you should consider before hiring a cell tower lease consultant. If you adhere to this, you will certainly get a reliable consultant who will attract you great deals. Click here for more information: https://www.bslassociation.org/what-to-expect-in-a-cell-tower-lease/

What to Expect In a Cell Tower Lease

Cell tower lease rates can be profitable when the right deal is struck. For a majority of landowners, they’re lucky to receive an offer and are able to earn a decent rental income each month. Of course, not all owners will be as lucky but it’s all about knowing the cell tower leasing agreement inside out. Also, having a helping hand in the form of a tower consultant might be the best way to proceed. So, what should you expect to see in a cell tower lease agreement?

How Long the Rental Agreement Lasts For

One of the first things to be discussed and set out in the leasing agreement is the duration of the lease. In most cases, cell tower lease rentals initially begin with a five-year period before being extended. Once the initial rental period is over, a further twenty or thirty years can be added. However, some agreements last shorter and some longer, depending on specific terms of the contract. You have to be wary of certain contract clauses which might impact the long-term value of your renter’s agreement. For instance, the wireless carrier may walk away if the tower loses value or isn’t required anymore. 

Cell Tower Lease Rates for Landowners or Landlords

Cell tower leases usually set out the amount of money or rent the landowner (called a landlord) will receive. That’s one of the first things you’ll see on the leasing agreement, usually before or after it talks about the duration of the lease. However, what you need to note is that rent prices vary considerably. There are a variety of factors that determines how much rent a site is worth, including its location, the demand, construction costs, and much more. Also, you’ll need to agree to the rental amount. A cell tower lease can be easy to understand once the jargon’s out of the way. If it’s stripped back, it’s really easy to understand.

Termination Clause

A termination clause gives the wireless carrier the ability to terminate the contract early and with very little notice given to landlords. This means you lose out on money and you probably have the company’s property on the land to deal with too. Sometimes, the company will no longer need or want their equipment (this could be because it’s old, damaged, or outdated) and it may fall to you to remove. It can be a costly process and there’s also the right of first refusal clause to contend with too. If the lease ends, they have the right to match any offers made and have theirs accepted. While you think cell tower lease rates are the only things to worry about, there’s far more. 

Seek Help from a Trained Professional

Cell tower consultants are probably the best people to turn to when you need help, support, and advice about leasing your land to a wireless company. Remember, these are trained professionals who know this area better than most. They’ll be able to, hopefully, secure the best deal possible so you don’t miss out. There are a lot more things set out in a cell tower contract and it’s hard to understand every point. That’s why a consultant is needed. A cell tower lease agreement will seem easier to understand then

 

5 Things To Know About Rural Cell Tower Lease Rates

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

How to get a Cell Tower on your Land

You want a cell tower lease so that you can earn a lot of money. There is a big monetary reward when you have a cell tower on your land because the companies renting out the land pay very well. However, just because you have a lot of land available, that doesn’t mean to say companies will recognize your potential to house a cell tower. If you’re interested in getting a cell tower on your land, maybe it’s time you found out how to go about it?

Do Your Research

There may be several hearings throughout the local area where companies look for approval for putting up a tower in the area; these are the meetings you want to attend. You may be able to approach an agent of the company and let them know you have land available to lease. You may be able to speak to a cell tower consultant and get the ball moving, and that’s a great start. However, while attending meetings are useful, they may not yield the results you want. It’s vital to do some research over which areas or regions have lots of cell towers and what restrictions there might be also.

Put Up a Sign Showing Land Available For Leasing

When you have the right zoning permits or permissions, why not put up a large sign on your property, visible to the road stating you have land available for leasing of a cell tower. You want to get a cell tower lease and you absolutely have to ensure people know you have land available. Putting up a sign can get the groundwork started because people will know there is land available and you might get offers. However, you must include a daytime telephone number or an email address so that if a company is interested, they’re able to contact you without delay. Read more!

Patience Is Needed

While you might like the idea of approaching a cell tower consultant and approaching a dozen different wireless companies, think again. If a company isn’t looking in your area for a cell tower, there is nothing you can do, and it’s a waste of your time bothering the company. Instead, you have to be patient. You must be patient and wait for the people to come to you, even if it takes several years. Sometimes, it does take a long while before anyone takes interest in your land. Remember, there is lots of land out there and that means yours might be passed by, but when the right time comes, it’ll be profitable.

Never Pay To Get a Lease

However, don’t think about paying a company to lease your land because that’s not how the game works! You want to remain patient and research before you start advertising your land for leasing. It’s not too difficult to get someone interested in your land, but it doesn’t guarantee you will be chosen for a cell tower, even with acres of land. Remember, it’s about location and how good the land is to house a cell tower. Hopefully, you’ll get a cell tower lease in the future. Learn more details at: https://www.quora.com/What-are-some-ways-to-get-a-cell-tower-on-my-property