Benefits Of Cell Phone Tower Leasing
A cell tower lease is an agreement between a tower company and a landowner or property manager allowing the cell tower company to install and maintain a tower for a specified number of years.These days it is easy to find cell phones all over the place.
The number of people that have left aside home phones and started using cell phones is noticeable.The high demand for cell phones from users has moved cell phone companies to work extra to bridge the demand gap.
The meaning of increased use is the yearning for reliable, wide-ranging network.Cell phone companies have been forced to approach churches, property owners, schools and local municipalities in a bid to place cell towers on their land.These very cell sites come in some sizes, ranging from a traditional tower large enough to scale to smaller antennas quietly tucked away on a rooftop.
Naturally, an immediate and noticeable benefit of the area is improved service.The people who subscribe to that particular cell provider will experience less downtime and better service.Local business people and people from home grab themselves an enormous perk from this.
It is also possible for the income stream to culminate to long-term financial benefit in the case of extension of the tower lease over a long period.Moreover, the value of the property itself rises as a result of cell tower company’s use.
In future, increased property value, and lease negotiations are made stronger.Additional income is the largest benefit for property owners when formulating a cell site’s agreement.The rent service provider’s rent will ensure the property owners experience an immediate revenue stream.This will be determined by the individual value of the tower and the negotiating strategies employed.
The revenues generated can be paid in lump sum to the property owner.Tower location, nearby traffic counts, local population density are part of the income that is collected by property owners aside ancillary lease income.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.
In addition to determining rent and escalate cell tower ground leases give clauses, mandates such as revenue sharing, government approvals, termination, removal, option areas, equipment installation, construction, collocates, access, fees, option periods and option fees.
These are usually drafted within 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.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.