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.
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 Sometimes, the company will no longer need or want their equipment (this could be because it’s old, damaged, or outdated) and it may fall to you to remove.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