As a landowner, you can make good use of your land through a cell tower lease. Companies dealing with cell phones and other cellular gadgets rely on cell towers to elevate antennas. These antennas facilitate the reception and transmission of radio frequency signals.
This cell phone tower lease review will help you understand cell tower leases and why you need to consider them.
What Is a Cell Tower Lease Agreement?
A cell tower lease agreement involves two parties: the lessor (landowner) and the tenant (cell tower company). The landowner allows the tenant to lease some space for the erection of a cell tower and other necessary equipment.
The lease rates for cell phone towers are highly dependent on your property's geographical location, the company's network needs, demography, and construction restrictions.
Benefits of Cell Tower Lease Agreements
Cell tower companies will pay a reasonable amount to use the property. Therefore, a cell tower lease agreement enables you to use vacant land to augment your finances. You may agree to receive monthly checks or get a lump sum settlement.
Besides, tower lease agreements often offer you more income than most other different projects. It's unlikely you will find tenants that pay similar lease rates as cell tower companies to use your property.
In most cases, once you have added a tenant that generates income on your land, its value escalates. And, in the future, you can choose to sell the lease to a buyout company. Most buyout companies pay more than the yearly cell tower lease rate.
Cell tower companies are credit tenants. This means their sizes and financial capabilities qualify them for an investment-grade rating. Therefore, expect their default rates to be virtually nonexistent.
Furthermore, you won't need the high maintenance associated with residential and commercial tenants with cell tower leases. Cell tower tenants generally maintain the property they've leased, take care of insurance, and handle their infrastructure.
Things To Consider Before Signing a Cell Tower Lease Agreement
Before agreeing to a cell tower lease, you need to ensure the terms included are in your favor. That means getting acquainted with your property value, the amount of rent you deserve, and how the lease will affect your property.
Ensure you have read the agreement thoroughly. Remember, you won't be able to terminate the lease, so any mishaps and regrets will last as long as the agreement is valid.
To be safe, hire professional consultants. They will help you get better offers, organize for reasonable rent increments, and ensure you don't give up too many of your rights as a property owner.
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