How much can you actually make by leasing your cell tower? Renting out your property to a phone company is much like renting a house in that certain market considerations apply. Cell phone tower lease rates depend on a number of factors. It is important to know what influences them so that an appropriate deal can be negotiated. Here are a few of the important things to consider when looking at cell tower leasing.
The location of the cell tower has a huge impact on possible cell tower lease rates. The value of your land, and the average price for property nearby, impacts cell phone tower lease rates. The locations of nearby cell towers, in proximity to your real estate, matters too. Carriers need their cell towers placed a certain distance from each other, so the amount of coverage already in your area (or the lack thereof) will have a significant effect on your rates. Different cities and states may have specific zoning or permitting requirements that can add extra costs, so be aware of those as well.
Cell towers require certain utilities including power, water and telephone lines. The carrier will need to do some construction on the property and they will need accessible roads to get building materials to the site. Lacking any of these elements at a remote location could impact lease rates, or even make a negotiation impossible. The farther away the location is from basic infrastructure, the lower the lease will be to counter these costs.
The property itself can affect cell tower lease rates. Flat ground with minimal obstacles is the best kind of land to have when it comes to a cell tower lease. Obstructions like trees will need to be removed, usually at the cost of the carrier. Ground elevation, while not a huge factor, can make a site more desirable. Carriers will look at more than just elevation in cell tower leases. If a site has other desirable assets, an appropriately sized tower can always be built.
When considering renting your property to a carrier or a cell tower lease buyout, it is important to have a knowledgeable advocate on your side. Be sure to submit you cell site to an experienced company for evaluation. Here at TowerPoint we will help you maximize the value of your property to get the best agreement possible. Don’t walk into a negotiation without knowing your property’s true value. Contact us to find about discounts and get more information.