Importance Of Cell Phone Tower Leasing.
The act of permitting a cell tower company by a property manager or a landowner over a stipulated number of years to install and maintain the tower is called a cell tower lease agreement.Cell phones are just about everywhere these days.
This can be seen from most people who have abandoned the use of home phones for the use of cell phones in communicating.The high demand for cell phones from users has moved cell phone companies to work extra to bridge the demand gap.
The meaning of increased use is the yearning for reliable, wide-ranging network.Schools, churches, property owners, local municipalities have been consulted by many cell phone companies to place cell towers on their land.These very cell sites come in some sizes, ranging from a traditional tower large enough to scale to smaller antennas quietly tucked away on a rooftop.
Naturally, an immediate and noticeable benefit of the area is improved service.The people who subscribe to that particular cell provider will experience less downtime and better service.Local business people and people from home grab themselves an enormous perk from this.
It is also possible for the income stream to culminate to long-term financial benefit in the case of extension of the tower lease over a long period.The cell tower company’s use rises the value of the property.
In future, increased property value, and lease negotiations are made stronger.The rent accrued from the rent service provider will ensure the property owner gets immediate revenue stream determined from how the cell site’s lease agreement was structured.This will be determined by the individual value of the tower and the negotiating strategies employed.
The revenues generated can be paid in lump sum to the property owner.Tower location, nearby traffic counts, local population density are part of the income that is collected by property owners aside ancillary lease income.Cell towers on leased land are owned by wireless carriers and tower companies.
Property owners sell tower leases to wireless carriers, private investors and third-party lease buyout companies.The primary lease value factors include rent, remaining lease duration and rent escalators.
Cell tower ground leases allocate responsibilities such as revenue sharing, government approvals, termination, removal, option areas, equipment installation, construction, collocates, access, fees, option periods and option fees in addition to determining rent and escalate clauses.
These are usually drafted within one or two six-month option periods, an initial five to ten-year lease term and multiple five-year lease option terms, extending the potential lease to a total term of thirty to fifty years or more.To permit the lessee to terminate the lease with little notice or penalty, early cancellation provisions are also are contained in cell tower ground leases.