Getting Down To Basics with Cellular
Considerations During Agreement on Telephone Tower Space.
A mobile phone tower lease is an agreement signed by both the telephone company and the subsequent owner of the land. The contract is aimed at renting the land to the interested cellphone company for a period to construct their tower. In exchange to the land leased out to the mobile company, a landowner gets to enjoy the income. Depending on the terms, the landowner is entitled to thousands of dollars, either annually or monthly, as it is a good source of ancillary income. The preceding variables are thus limiting factor in determining leasing rates.
There is a great effect location has on the cell phone tower lease. The location factors affecting leasing rates are the value of the land as well as the average price of nearby property. Besides, the location of nearby tower, around the target land, has an effect too on the rates. It is a characteristic of mobile companies to want their towers constructed away from the competitors. As a result, leasing rate is affected by presence or absence of competitors towers in the region. Various states or cities have set rules that dictate permission requirements or some zones specific to construction of the towers, adding some cost to the rates.
The construction of cellphone towers require specific infrastructure requirements like the availability of power, roads, telephone lines and roads. The construction of the towers will need construction. Therefore it is important that the location is accessible. When a particular location lacks the necessary infrastructure, the leasing rates become lower, and there can’t exist even a single negotiation.
The land itself can affect the leasing rates. Flatland with almost no barriers are the best choice of land to the mobile companies. extra cost are incurred by the mobile companies when building their tower, in case they encounter obstructions like trees, therefore the need to remove them. What can also make land more desirable is its ground elevation. Carries not only consider ground elevation, but also other desirable assets appropriate for the construction of the tower.
In case one is considering renting out their land to a cell phone company, they ought to have an advocate who knows the industry. A thorough evaluation is important when the landowner submit their property details to consulting bodies.
The consulting organizations will help the landowner to analyze their land details and get the perfect contract by producing the optimum value of the land.
It is not proper to get involved in a contract of land leasing when you don’t know the actual value of the land as some cellphone companies can pay way less.
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