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.

www.towerpoint.com/cell-tower-lease-rates

For self-storage operators, this factor offers an income-generating opportunity that supplements the primary uses for their space. Given the many intricacies involved in a cell site lease arrangement, however, it is undoubtedly sensible to work with an institutional investor who can arrange a long-term lease with favorable terms. An Inside Self Storage article warns about the various pitfalls interested parties need to avoid:

The mistake many self-storage operators make is, being in the real estate business, they continue to track the elusive “market rent” figures when determining how much to charge a cell-tower company. To be crystal clear, there’s no such thing as market rent when it comes to a cell-tower lease. If you try to use comparable rents in your area, you’re using data that will only cause you to perpetuate under-valued rents that have been paid to property owners for the last few decades.

http://towerpoint.com/great-rental-rates-for-your-cell-site-via-an-institutional-investor/