Importance Of Cell Phone Tower Leasing.
An agreement between a landowner or a property owner-manager and a tower company allowing the cell tower company to maintain and install a tower for a given number of years is called a cell tower lease.Cell phones have been made available these days as they are found almost everywhere.
This is evident in the number of people that have ditched home phones and embraced cell phones as their primary means of communication.The high demand for cell phones from users has moved cell phone companies to work extra to bridge the demand gap.
It should be noted that increased use means the increased desire for reliable, wide-ranging networks.This has led to many cell phone companies reaching out to property owners, not leaving behind schools, churches and local municipalities about placing cell towers on their land.The traditional towers large enough to scale to smaller antennas quietly tucked away on a rooftop show how the cell sites come in some sizes.
Improved service delivery is a benefit enjoyed naturally.Less downtime and better service is one of the benefits that will be enjoyed by the people who subscribe to the cell provider.Local business people and people from home grab themselves an enormous perk from this.
In the scenario that the cell tower lease is extended over a long period, there is a possible income stream that leads to longtime financial benefit.Moreover, the value of the property itself rises as a result of cell tower company’s use.
Lease negotiations and increased property value are made stronger as time goes by.The rent accrued from the rent service provider will ensure the property owner gets immediate revenue stream determined from how the cell site’s lease agreement was structured.The individual value of the tower and well-negotiating strategies employed will inform this amount
The property owner as an alternative can be paid to the property owner in lump sum.Property owners collect ancillary lease income, the amount which is dependent on tower location, nearby traffic counts, local population density Tower companies and wireless carriers own or manage cell towers on leased land from various property owners across the country.
Tower leases are sold to private investors, wireless carriers, third-party lease buyout companies by property owners.The primary lease value factors include rent, remaining lease duration and rent escalators.
Cell tower ground leases allocate responsibilities such as revenue sharing, government approvals, termination, removal, option areas, equipment installation, construction, collocates, access, fees, option periods and option fees in addition to determining rent and escalate clauses.
One or two six-month option periods, an initial five to ten-year lease term and multiple five-year lease option terms, extending the potential lease to a total term of thirty to fifty years or more is the time it takes to draft a lease agreement.Cell tower ground leases are also are also contained in cell tower ground leases to permit the lessee to terminate the lease with little notice or penalty.