Benefits 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.Cell phones have been made available these days as they are found almost everywhere.
This can be seen from most people who have abandoned the use of home phones for the use of cell phones in communicating.Due to the high demand of people using cell phones, cell phone companies are doing their best to meet the demand.
It should be noted that increased use means the increased desire for reliable, wide-ranging networks.Cell phone companies have been forced to approach churches, property owners, schools and local municipalities in a bid to place 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.
Naturally, an immediate and noticeable benefit of the area is improved service.Less downtime and better service is one of the benefits that will be enjoyed by the people who subscribe to the cell provider.Local business people and people from home grab themselves an enormous perk from this.
Long term financial benefit and income stream is a result that can be achieved by extending the tower lease over a certain time frameThe value of the cell tower’s company use rises the value of the property.
This sets the stage for stronger future lease negotiations or increased property value when sold to another party.Additional income is the largest benefit for property owners when formulating a cell site’s agreement.The rent service provider’s rent will ensure the property owners experience an immediate revenue stream.This will be determined by the individual value of the tower and the negotiating strategies employed.
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.
Revenue sharing, government approvals, termination, removal, option areas, equipment installation, construction, collocates, access, fees, option periods and option fees in addition to determining rent and escalate clauses are some of the responsibilities allocated by cell tower ground leases.
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.To permit the lessee to terminate the lease with little notice or penalty, early cancellation provisions are also are contained in cell tower ground leases.