Property owners fight for great cell tower lease rates. It’s easy to see why; a mobile company can earn millions of dollars just from one cell tower. Of course, cell towers are in great demand because better connectivity is required. That does create a debate over the use of cell towers and whether they’re worth it. So, what do you give up and what do you gain when you have a cell tower on your land?
You’re Locked in an Agreement for A Considerable Period
First of all, it’s important to understand that when you sign a lease to house a cell tower on your land, that’s a legal-binding contract. Once you sign the cell tower lease, you are locked into that agreement. However, some tower leases can run upwards of over 20-years; on occasion, they run 99-years. It can vary considerably and that creates a major headache. Technically, you’re giving up that part of your property for a considerable period. That can have an impact when you sell your property, for example.
You Gain a Sizeable Income
On the plus side, cell tower lease rates can be very impressive. Creating a second stream of income through a cell tower can be a smart idea, especially if you aren’t using that piece of property. Of course, if you are renewing your lease, you should renegotiate the terms and increase the rates. This will depend on the demand for your property and how long the mobile company wishes to rent your land for. Know more here!
The Rewards and Risks
Cell towers have their advantages and being chosen to rent your land to a mobile company can be a great idea. Of course, there are risks and rewards that come with it. As said, a cell tower lease is a binding agreement, and you are stuck with it until the contract runs out. That means if you don’t like the cell tower, you can’t get rid of it after 2-years. On the other hand, if you have a sizeable piece of property and don’t mind a cell tower, it’s a great way to earn a little more money. It can be well worth it – if cell towers work for you.
Is It Worth It?
Cell towers can be great but only when they’re right for you, personally. For instance, you have a small piece of property but want to sell in 2-years. The lease with the mobile company will last 5-years. While you think it’s a great addition to your property, potential new owners might not. That means you could struggle to sell the property which means taking a lower offer or finding a buyer that’s happy with a cell tower. Of course, if the cell tower lease rates are great and are happy to put off selling, it can be worth it.
The Love of a Cell Tower Lease
Cell towers have become in great demand with the extension of the internet and smart devices. In cities, suburbia, and the countryside, there’s growing need for connectivity. That does mean companies will continue to search for cell tower locations. Many companies look to privately-owned property to find a prime location. It can be valuable, especially if there is great demand in your area but few cell towers. So, if the cell tower lease rates are good and the term isn’t extensive, it can be a wonderful opportunity. For more details read our article: https://www.bcsfuelcells.com/leasing-land-to-a-telecommunications-company-to-build-a-tower/