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Cell Site Lease Rates and Inflation

Land owners who are approached with regards to hosting cell tower equipment on their properties are normally so impressed with the idea of receiving unexpected rental income that they end up signing the first rental agreement that is offered to them. However, this is not recommended, as it is usually possible to negotiate far higher rental rates if the services of companies who specialize in cell tower lease buyouts are utilized.

Negotiate Annual Rental increases

As with the price of any commodity, inflation dictates that the cost of it should rise each year, and rental payments should certainly be no exception to this. However, when it comes to site lease rates, most cell carriers try to pay land owners as little as possible for the use of their properties, while they earn billions of dollars in profits each year. Property owners should hire the services of an experienced cell tower lease consultant or a cell tower management company to take care of the contract negotiation process on their behalf, as this will ensure that fair annual rental increases are included.

Factors Affecting Rental Rates

One of the main factors that affect rental rates for cell tower sites is ease of accessibility to the site. For example, if sites already have amenities such as electricity and water and are is situated in a built-up areas, property owners will receive far higher rental rates. If there are no other cell sites in the nearby vicinity, this factor will also drive up rental rates substantially. Companies who specialize in cell tower lease buyouts will always be willing to provide property owners with honest estimates regarding the potential rental that could be received for the use of their properties.

Before signing any paperwork pertaining to cell tower lease buyouts or having new cell tower sites built, property owners should seek out a professional opinion from reputable tower management companies instead of directly from cell carriers.


How Are Cell Site Lease Rates Determined?

When it comes to cell site lease rates, most land owners are not sure of how these are determined. However, there are a few important factors that cell carriers and tower management companies take into consideration when determining them.

Site Accessibility and Topography

Sites that are significantly higher than those surrounding them will normally be more desirable for cell tower companies than those that are situated lower down. A site that is situated on a hilltop, for example, will be of more value than one in a valley, which means that the land owner will receive a higher rental rate for it. If a site already has existing infrastructure, such as electricity, water and even a tower or building that can be used to house the required antennas and other cell equipment, the land owner will also receive a much higher rental amount for it. Sites with no existing infrastructure and that are difficult to access will receive far lower rental payments.

Negotiating Better Rates

Although it may sometimes be possible to negotiate better rental rates, it is not always possible – especially for property owners. As a result, many of them tend to opt for cell tower lease buyouts instead. If land owners are approached directly by cell carriers with regards to cell tower lease buyouts, they need to ensure that they hire an attorney to handle the process for them. It is actually better for property owners to deal with reputable tower management companies when opting for cell tower lease buyouts, as this ensures that they receive the best level of financial compensation possible for the deal.

When handled by tower management companies, cell tower lease buyouts are usually a quick and smooth process. Once the deal is finalized, land owners can then use their cash lump sum in any way they see fit.


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