Are you wondering where you can get more money to supplement your income? Do you own land and could potentially rent a portion of it out for a passive income stream? Are you a commercial property owner with a lot of rooftop space available? If you answered yes to any of these questions, then it might be time to consider a cell tower site for your property.
Though this option is not available to everyone, property owners are being approached daily by telecommunication companies about adding cell towers to their property. These lease agreements can be an incredible opportunity for landowners to earn a passive income for twenty years or more.
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The first step for any landowner should be to research cell tower rates in your area and the number of existing cell phone sites nearby. Too many cell phone towers in your home area may put you at a disadvantage. You should also put into consideration the type of property you own, where your land is, and its size in acres (or square footage of the rooftop for commercial property).
About cell towers and telecom
What exactly is a cell tower? It’s a structure that consists of antennae, electronics, receivers, transmitters, and other power sources. This structure helps to transfer mobile phone signals. Anytime you make a call, your handset connects with your network provider's cell tower that is nearby. The cell tower will then relay the outgoing signals, data, and incoming voice to your mobile phone.
The best thing about telecom towers is that they are not limited. This means that you do not have to keep within the first tower's range that connects to your phone. The base station allows you to keep communicating as it transfers your call from one cell tower to another. Therefore, it is possible to make calls even when traveling long distances. Cell towers allow you to make and receive calls or text messages depending on where you are, as long as there are towers to support the service.
If you reside in an urban location, you can observe cell phone towers on top of very tall buildings since they help transfer signals to a wide area. Most cell tower providers prefer to elect towers in open areas free from any obstructions instead of places with physical obstacles, which makes rooftops ideal. City centers or areas with a large population have plenty of telecom towers. However, in rural areas or areas with scarce population, you might only find one or two towers that serve the local population.
About cell tower leases
A cellular phone tower lease agreement takes place between network providers such as T-Mobile, AT&T, and Verizon and various landowners or organizations. Property owners might decide to lease their land to wireless carriers or to other tower companies who own or manage cell towers in the US.
The agreement allows the tower companies to lease land as a cell tower site for a certain amount over a long period. A cell phone tower lease states that the property owner will collect a certain income from cell tower owners. However, the income will depend on the local population density, the nearby traffic, and the location. In fact, each lease is completely unique. That’s why it is imperative to consult with a cell tower lease expert before signing any paperwork. Otherwise, you may accept an offer that is significantly lower than what you deserve!
A property owner can also decide to sell their cellular phone tower leases to third parties such as private investors and other wireless carriers. Your lease agreement's value will also depend on the type of cell phone provider who leases your land. Most people prefer to sign leases with top-tier network providers such as T-Mobile, Verizon, and AT&T. This is because they are publicly traded companies, offer safe investments, and provide high lease values. The property owner and the cell tower companies negotiate the value of the cell tower lease before tower installation, during the lease renewal, and the lease buyouts.
How You Maximize Your Lease
As previously mentioned, each lease offer should be reviewed individually when considering its value. Some of the things that can impact the lease rates include:
- The population of your area
- The number of cell towers in your area
- The number of possible cell sites surrounding your land
- How easy your site would be to access
- Local zoning codes
The leasing rates vary greatly as do the terms of the agreement. Too often property owners unknowingly put their rights and their property at risk from an unfair deal.