Considerations During Agreement on Telephone Tower Space.
A mobile phone tower lease is an agreement signed by both the telephone company and the subsequent owner of the land. The contract is aimed at renting the land to the interested cellphone company for a period to construct their tower. Earning income is one of the benefits the landowner gets, in exchange for the land they lease out to the mobile company. Depending on the terms, the landowner is entitled to thousands of dollars, either annually or monthly, as it is a good source of ancillary income. When determining the leasing rates, the following factors are considered.
Location causes significant effect on leasing rates. The location factors affecting leasing rates are the value of the land as well as the average price of nearby property. Leasing rates are also affected when there are preexisting mobile towers around the target land. most mobile companies prefer their towers located away from those of other mobile companies. As a result, leasing rate is affected by presence or absence of competitors towers in the region. Various states or cities have set rules that dictate permission requirements or some zones specific to construction of the towers, adding some cost to the rates.
The construction of cellphone towers require specific infrastructure requirements like the availability of power, roads, telephone lines and roads. The construction of the towers will need construction. Therefore it is important that the location is accessible. When a particular location lacks the necessary infrastructure, the leasing rates become lower, and there can’t exist even a single negotiation.
The land itself can affect the leasing rates. Flatland with almost no barriers are the best choice of land to the mobile companies. With the presence of some obstructions like trees, the mobile companies will have to remove them, thereby incurring additional costs. Ground elevation is a key factor that can influence the desirability of a land. Carries not only consider ground elevation, but also other desirable assets appropriate for the construction of the tower.
In case one is considering renting out their land to a cell phone company, they ought to have an advocate who knows the industry. It is important to have a submission of the site details for proper evaluation by the consulting groups.
They will help you produce the maximum value of the land and getting the best agreement.
It is not proper to get involved in a contract of land leasing when you don’t know the actual value of the land as some cellphone companies can pay way less.