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.