How to Get the Best Rentals in Cell Tower Lease Agreements

Property owners today can lease out their land for tower construction to wireless companies and enjoy the payments made in lieu of the lease. This can be a lucrative business proposition for the owners of properties; however, the cell tower lease agreements need to be properly negotiated for the owners to maximize their cash inflow and minimize risk.

In general, the lease agreements for cell towers often tie up any real estate for decades. So, it becomes important for property owners to negotiate the most favorable terms in the agreements they sign with tower companies. The best way to go get a fair market value for a new cell tower lease is to hire the services of cell tower lease experts. The experts can evaluate the availability of alternate cell sites and optimal radio frequency signaling factors to make sure that the landowners are getting rentals that their sites deserve.

The process usually starts with a site acquisition agent, working on the behest of a wireless company, scouting the area and zeroing on a few parcels suitable for the location of a wireless tower.
The agent than gets in touch with the land owners and enquires whether they would be interested in leasing their land for the construction of a tower.  Often, the agent contacts multiple landowners having suitable sites to find that one person who would act fast and agree to the terms of the proposed agreement.

In the next phase, the agents take the GPS coordinates of a property to assess its suitability for being used as a tower site. The agent contacts a landowner and initiates negotiations, only after the land is found to be suitable. The initial offers made are usually by the agents themselves; however, there is a cap rate which they cannot exceed while making the starting offer.

The owners of properties need to move fast if they want to lease their land to the tower companies as there could be multiple interested parties. The site acquisition agent is often interested to sign a lease with a person least likely to get the lease agreement analyzed by an expert. However, it is in the interest of site owners to get in touch with lease negotiation experts and gain from their valuable insights. This is necessary to make sure that the interests of the landowners are not being compromised in any manner.

It is imperative for landowners to enter into these agreements only after reviewing them in some detail. The landowners should only sign on the cell tower lease agreements after they are totally satisfied of the terms and conditions.

The Best Way to Negotiate Cell Tower Lease Rates

Property owners can opt for consulting services to know more about the cell tower lease rates they should charge from a cell tower company for the use of their land. This becomes all the more important, when they are asked to extend or sell their existing lease. The established trend of relying on market rates to gage the rate for leasing properties often do not work and can cost them thousands of dollars over the life the agreement. They can maximize their revenues by working with a company offering consultation services on cell tower leases to get the full compensation from the use of their land.

What property owners need to understand is difference of cell tower leases from other real estate assets. The cell tower leases are considered as telecom assets by the wireless companies; it is also in the interest of property owners to consider them as such.

The owners of properties need to be absolutely clear about the fact that the value of every cell tower site is different. Two cell towers from the same company can be located within a few miles of one another with the same rent and similar terms for leasing. However, the cell tower lease rates can be significantly different in the two instances, as the value of the land is not calculated in deciding the same.

The process followed in determining the lease rates involves the evaluation of the properties to find out more about cell tower suitability. A site acquisition agent often works for the tower company and contacts the property owners with a starting lease rate, which is influenced by the existing rates agreed upon by other similar property owners. These agents are local and have a complete understanding of the region and the probable cell tower sites. They also work for incentives and have a strong motivation to acquire properties at the lowest possible rates.

Given this backdrop, property owners are better off when there is someone experienced and reliable representing them in the cell tower lease or buyout agreements. A reliable consulting company can help them get the best possible deals, which would prove to be profitable even after the deduction of the consulting fees. Once the deal is signed and sealed, there is no scope to revisit the same again and the owners of properties have to make do with whatever cell tower lease rates agreed upon. So, it makes every sense to act when there is still time and finalize the best possible rates rather than getting locked up for decades.

How much can you Earn on Cell Phone Tower Lease

When a friend or acquaintance advises you on giving your property on lease for the cell phone  companies to put up their towers , the first question that may come to your mind is how much will I earn. But even if your friend knows and gives you a figure it may not be similar to what the company may offer. It could be more or it could be less. There are a few points that are to be considered before the cell phone tower lease rates can be finalized.

The factors that influence the lease rates are a] new lease or b] renewal of lease. Fresh lease usually has the rates fixed based on the area and connections. An extension or renewal of lease would mean increase in rental rate from what you were getting. An existing tower saves on installation costs so the company would prefer to pay more and continue there rather than change the tower unless they were having any signal problems there. You as an owner can negotiate based on the situation in your area.

Points to discuss on:

1. In case you are in a densely populated area, there would be many people using the phones and the company is benefited with the tower in your premises. You could also take advantage and insist on terms beneficial to you.

2. If there are many landlords willing to let out their premises, you have no choice but to accept what the company is willing to give, They have many alternative properties to approach.

3. If the lease is on and the company wants to add more antennas because of increase in traffic, you could ask them for extra payment because they are only earning without spending.

There are many ways that you can discuss on while negotiating the cell phone tower lease rates with the mobile carrier.

Points You Need To Consider While Opting For Cell Tower Leases

You need to realize that cell tower leases are a type of property contract that generally takes place between the owner of a land and a telecom company. If you have leased out your piece of land for the purpose of setting up a tower lease, there are a few points that need to be taken into estimation. The first and foremost point you need to take into guesstimate is handling all types of negotiations on your own. If you hold the ability to control all types of property related affairs, it certainly will not be a difficult task to save thousands of dollars.

It indeed is a nice thought hiring the services of a Real estate agent. Pondering as to what might be the possible reason behind the need to consider hiring the services of an attorney who holds expertise in the same area? Well! The reason behind the same is that an attorney holds the right kind of experience in similar matters and can play an instrumental role as far as letting you know as to which path can help you in earning rewarding advantages. An astute legal representative who holds the right kind of experience in similar legal related affairs can help in discerning the real meaning involved.

Prior to entering into the cell tower leases, it is important to enter into a leasing contract that remains associated along with the evaluation of the land. You need to stay informed about the truth that there are a number of factors that determine the involved leasing cost. A few of the important factors that do hold an impact on the same include the type of area, background of the building and market value of the land. It is important to realize that positioning of the building in terms of the zoning also holds a strong impact on the overall involved cost. It is sagacious to stay informed about the rental values that remain associated along with the cell phone tower leases. There is no real point in relying upon the ‘Cap Rates’. The reason behind the same is that on most occasions it has been perceived that cap rates are unable to make the right assumption about the value of the property existent in the marketplace.

While carrying out the negotiation process, it is never a wise thought to get bogged down by the

offers made by the representatives of the cell phone tower companies. There may be situations where the tower companies may pressurize you to part with the land. However, if you want to get saved from incurring substantial losses, you need to ensure that you are not influenced by the offers thrown at you. You can always search the online resources in order to learn a few of the other important factors.