The 5 Commandments of Leasing And How Learn More
Factors to Consider When Signing Cell Phone Tower Lease.
A cellphone tower lease is an agreement agreed upon by a telephone company and the owner of land. The contract is aimed at renting the land to the interested cellphone company for a period to construct their tower. In exchange to the land leased out to the mobile company, a landowner gets to enjoy the income. 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. The preceding variables are thus limiting factor in determining leasing rates.
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. On the other hand, when there are nearby towers around the target land, affects the leasing rates. most mobile companies prefer their towers located away from those of other mobile companies. For this reason, the amount of coverage in your location, or its unavailability too has an impact on the rates. 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.
Specific infrastructure necessities are required for the construction of cellphone towers like water, power, roads and telephone lines. Accessibility to the intended location is important as the mobile company will require to the construction of the towers. When a particular location lacks the necessary infrastructure, the leasing rates become lower, and there can’t exist even a single negotiation.
The land in particular also can be affecting 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. Another factor that can make land more desirable is the ground elevation. 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.
The consulting groups will help in evaluation of the details producing the maximum value of the land and getting the most appropriate contract.
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.
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