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.These days it is easy to find cell phones all over the place.
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.
The meaning of increased use is the yearning for reliable, wide-ranging network.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 array of sizes, showing from traditional towers that are large enough to scale smaller antenna that is quietly tucked away on a rooftop show the number of sizes the cell sites come in.
An evident and natural benefit of the area is improved service.The people who subscribe to that particular cell provider will experience less downtime and better service.Local homes and business people enjoy the most 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.The value of the cell tower’s company use rises the value of the property.
Lease negotiations and increased property value are made stronger as time goes by.The structure of the lease agreement of the cell site will inform the amount of revenue stream that will be earned by the property owner.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.Tower location, nearby traffic counts, local population density are part of the income that is collected by property owners aside ancillary lease income.The management or ownership of cell towers on leased land is mandated to the tower companies and wireless carriers 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.