Cell Tower Lease Rates: Here Are the Determining Factors

Land is a property that can benefit you in different ways. Besides using it to keep animals and grow cash crops, you may also lease it to a company interested in erecting a cell tower. When most landowners are approached to strike a deal with the company, they begin by assessing the value of their land. They forget that the lease rates vary due to different factors. The leasing company may have to look into certain factors in order to determine the rate of cell site leases that landowner would receive. Here they are:

Tower companies

The tower companies that rent the land to erect their cell towers are also responsible of managing them. After a particular tower company pays the landowner the agreed amount, it can also lease the tower space to other wireless carriers who show interest in that space. If the landowner had erected a tower in the land space, the leasing company may decide not to operate it, but instead insist on erecting their own tower. Depending on the cell tower lease market rents, the tower company may take close to 70 percent of the profit earned and give the remaining to the landowner.

Land location

Land location is among the most influential factors that determine the rate of cell tower lease. The wireless carrier would first determine if the location of the land is desirable to them or not. Location plays a major role especially if the tower company is new and it is getting into a new cell tower lease for the first time. The location is suitable for the leasing company if the population it intends to serve is sizable and if the land topography is favorable for tower operations. Those leasing the land to erect their tower may consider the neighboring plots when coming up with the leasing rate.

Negotiation

If the landowners mandate the tower companies to determine the lease rate without involving them much, they may end up getting a lower lease rate. The ability of the landowner to negotiate for the lease rate increase could bear unexpected favorable results. What this stipulates is that the landowners may have to know the land lease rates in their respective regions. Besides negotiating for increased lease rates, the landowner could also negotiate for cell tower lease extension. How favorable or unfavorable the leasing terms become may highly depend on the negotiation skills of the landowner. Check out Cell Tower Lease Experts

Miscellaneous expenses

Once the landowner and the leasing company have agreed on a certain leasing rate, they seal the deal. However, most leasing companies fail to see other expenses that may have to accompany the tower erection process. For instance, it would not be easy erecting a tower on a bushy piece of land. They would have to clear it first using money they never included in the leasing budget. They may also set some money aside for routing in power, building an access road, fencing around the tower as well as leveling among others. If these expenses are included during negotiation, the cell site leases would decrease.

It’s now evident that determining lease rate may not be done without considering certain factors. Although most of these determining factors are unchangeable, they don’t deny the landowner a room for negotiation. However, the cell site leases should leave both the leasing company and the landowner happy with the agreed terms. For additional details visit http://www.celltowerleaseexperts.com/cell-tower-lease-buyouts-2/

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