The Determining Factors Of Cell Tower Lease Rates

Are you getting the most out of cell tower lease rates? This is one of the most crucial question landowners usually ask themselves when planning to have a cell tower installed in their land. However, it is essential to note that both the property prices and cell towers share-alike factors that determine the cost, including design, offers, and age. But the cell tower carrier rates are far more complicated. This means that the contribution of the tower to the carrier network will heavily define how much leasing income you will be receiving.

Rooftop Areas Pays More

One of the major determining aspects for better rates is the cell tower site found in your land. Rooftops sites will generally provide higher monthly income rates than a typical raw land site. This is because rooftop sites will not require the installation of the cell tower when it comes to supporting the antenna facilities. This means that the carrier gets to save more cost, including insurance, FAA lighting, together with liabilities.

Raw Land Sites

The cell tower construction mostly occurs on privately owned land or leased land. The area is then fenced to stop outsiders from accessing the area, however, due to the expensive maintenance and construction cost. The landowner is more likely to receive less monthly incomes. The location of the land is also a determining factor.

Concentrated Population Increases the Coverage Demand

High population areas offer a chance of asking for high rates. However, this depends on the proximity of the cell site to a targeted population. Most carriers prefer a cell site that is near metropolitans since it is simple for the tower to handle the considerable call and internet traffic coming from such areas. This means that landowners have a better chance of demanding higher rates as the land offers an excellent and strategic location.

The Leasing Duration

Most of these contracts are usually long term stating form five years to a maximum of 30 years. Understanding this allows you to properly think about how much you wish to get as rent from the company. Once the leasing duration is over, you also get an opportunity to set new terms, which includes new leasing rates.

To make the most out of cell tower lease rates, it is essential to ensure you put the above factors into consideration. This will assist you in negotiating for a better leasing rate from the carrier without any problem.

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