Wireless cell companies may approach you with the purpose of renting your land for their cell towers. The step is usually taken after the company’s engineers are convinced that your land is the best site for construction of a cell tower in a particular area. Before entering into negotiations, however, you should be aware of the factors that may influence cell tower lease rates. Only then can you make an informed decision on the amount of payment you should ask from the company when you come to the negotiating table.
1. Population
The higher the number of people living near the cell tower, the higher the amount of money you can get in form of rental income. Therefore, you are lucky if your site is near a main metropolitan area since that is where population is usually highly concentrated. Don’t accept an amount that is equal to what an owner in rural areas would get. Wireless carriers would readily pay high amounts for metropolitan sites simply because their returns would be higher. There is more internet traffic, more calls made and lower maintenance costs.
2. Site of Construction
The physical site on which the tower is built is important in determining how much you should get from the renting company. As a rule, towers built on rooftops call for higher payments than constructions on raw land. The reason is simple: there are fewer costs for erection of rooftop towers than there are for towers standing on bare land. The company does not have to pay for the construction of the support of the antennae in addition to foregoing insurance, maintenance of the tower, lighting and climbers as well as other costs and risks.
3. Popularity of Venues
A large number of people are hosted in big venues at any time. Wireless carriers know that a great amount of data is consumed through such cell phone services as messaging, video uploads, sharing of photos as well as sending and receiving emails while in popular venues. Furthermore, the cell phone activities may be too much for traditional towers and there must be special systems related to venues. Thus, property owners near such sites as airports, stadiums, shopping malls and convention centers are likely to earn big from leased land.
Conclusion
There are many factors determining the amount of payment you should get from wireless carriers for construction of cell towers on your property. The concentration of the population, however, is the greatest determinant on how much you should ask. The costs to the company and the revenue it would get are also points to be considered when calculating cell tower lease rates. If your site is located in prime areas such as metropolitan sites, you should get a considerable amount of revenue.
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