Looking at the numerous leases that exist today, the most unfamiliar one to the general public is a cell tower lease. However, this does not dispute the fact that it’s an exceptional asset.
If it’s your first time to hear about this lease, it’s important to know that it’s between a property owner and a cellular service provider or a cellular company.
As a property owner, you are paid a certain amount by the cellular service provider or the cellular company for housing their cell tower. You’ll earn the lease amount for the time specified in the contract.
In the US, you can receive anything between $100 and $150,000 per year depending on a few factors.
The Determining Factors
Several factors dictate the cell tower lease rates that you are given by a mobile carrier company and it’s important to be familiar with them before accepting an offer from a cellular company or a cellular service provider. The main ones include:
• Coverage Demand: Do you have poor or good cellphone coverage in your area? In the case of the latter, you are likely to earn more from the cellular company or service provider.
• Cell Tower Supply: Are there a few or many cell towers within your local area? In the case of the former and the coverage demand is found to be okay, you are likely to get more money from the cellular company or service provider.
• Existing Competition: Cell tower companies and service providers often go for property owners who ask for a lower rate. It makes sense to go for cheaper lease rates if the competitors are found in the same location and their properties have similar characteristics or potential.
• Population Density: A cell tower that’s installed in a densely populated area is a plus for the cellular service provider since they are guaranteed more subscribers. So, they won’t hesitate to pay you more.
• Installation Site: A cell tower can be installed on top of a building or on raw land. Normally, you’ll earn more if it’s fitted on your rooftop as opposed to raw land provided that the other factors remain constant.
In 2019, the cell tower lease rates are looking impressive. Even though there is a huge disparity between them, it’s irrefutable that having a cell tower lease is an assurance of financial returns. The money will keep on coming as long as the contract remains valid. To get the best rates for a cell tower lease, do your research on the current rates and don’t hesitate to negotiate for the better rates.
