Demand for cellular services remains high. In the U.S. alone, about 91% of adult Americans reportedly own cell phones and smart phones. As mobile subscribers clamor for faster and better voice and data services, wireless carriers must in turn respond by building more cellular sites or towers, particularly in highly populated areas. This ensures that cellular signals remain strong and reliable.

Cellular towers play an important role in telecommunications, particularly since they relay signals from mobile phones to operators who then redirect the data to recipients. To serve the growing demand for reliable mobile data and voice services, property owners can put their properties up for lease as cellular tower sites and in return earn a considerable income for the duration of the lease.

Leasing a cell tower can be a lucrative business for landowners. If you wish to get into this venture, you need to consider several factors to increase your chances of success.

First of all, you have to determine if your property is an appropriate cell tower location. If the location of the property is too far from places with heavy traffic, network service companies may not find the property attractive. You also need to make sure that setting up a cell phone tower in your property does not violate any zoning regulations. 

 

You then need to market your property to cell phone service providers. You can contact prospective companies directly, as well as advertise your property in appropriate channels. Putting up a noticeable sign in your property can also get a provider’s attention. Don’t get discouraged if you do not immediately receive a reply from any prospective leaser, as cell phone tower requirements could change periodically.

To make sure your property is always on the radar of cell phone service providers, consider marketing it through cell site tower brokers. These companies typically would have existing relationships with cell phone service providers, and can thus help you connect with potential customers faster. Additionally, these cell site brokers can include your property in their extensive marketing programs. 

As a landowner who leases his or her land for a cell tower, you might receive an offer to sell the lease at some point. Perhaps you are deliberating within yourself whether or not you should sell, and why.

Your reluctance to sell is reasonable for a variety of reasons. An active lease provides a constant trickle of income. Additionally, selling your lease to someone or a company can be a daunting task that you might be unprepared for.

Should you overcome your indecision, selling your cell tower leasing can result in a number of benefits for you. Here are three of them:

Capital

Although you receive lease payments every month, you won’t be able to tap into that as a long-term revenue stream. Selling your cell site lease can grant you large amounts of capital to invest in other long-term ventures.

Risk Reduction

Not only does selling your cell site lease give you capital, but also it reduces your risk against inflation or an early termination of the lease. Additionally, you minimize the risk of owning a devalued lease when the cell tower becomes obsolete.

Tax Treatment

While it depends on the situation, selling your cell tower lease can also grant you a favorable tax treatment. What this means is that you can defer taxes through a “1031 exchange” if you purchase another property following the lease’s sale.

To ensure that you get the most out of selling your lease, always seek advice from an experienced professional.