Cell Tower Land Lease: Setting Realistic Expectations

So there’s a new telco player in town and everyone is excited about their entry. Landowners are particularly enthused because they could gain a lot of money from cell tower land lease. It’s a good long-term source of income that would make their lands more productive. Having a nearby tower would also give them the best position to enjoy high-speed Internet and stable voice calls. However, it would be best to temper expectations by learning more about how the lease works. Not everyone can qualify and the amount may not be as high as the rumors say. The tower might not even get built at all in some cases.

The Ideal Site

Companies will search for ideal sites to maximize the potential of their structure. It would be foolish of them to build a tower where it will not be able to propagate its signal to a wide area. For example, in the middle of a wooded region or at the bottom of a gully. There will be too many obstacles blocking the signal and rendering the tower useless in these situations. Instead, they will pick the locations that give them an advantage such as elevation in the form of a hill or a tall building. The surroundings should also be free from obstructions.

The Lease Amount

Some people hear of massive amounts when it comes to these leases so they get their hopes up. They might see mentions of millions of dollars flying around and think that it is too good to pass it. However, such amounts are unlikely to be true in this case. A few thousand dollars monthly would be realistic. A few hundred dollars would be common for smaller towers and rural properties. Remember that the lease follows basic property rules in that exclusive areas command more money than the rest. City properties are more expensive to rent than rural properties. They also rarely pay large amounts upfront. Rather, they often pay in trickles with monthly rents via check. It is possible to negotiate a different arrangement.

The Red Tape

Even after the company and the landowner agrees on the terms, the construction of the tower may not be able to proceed right away. It could take months before they can get the permits from the local governments and gather other requirements. The red tape is notorious for delaying many projects.

Find actual landowners with cell tower land lease and talk to them to learn more. You may also discuss the matter with expert advisors.

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