Want to know the average cell tower lease rates for your area? You’re probably hoping the answer turns you into an overnight millionaire; unfortunately, the reality is far from that! While you can earn a decent rental income from a cell tower, the actual rental rates can vary considerably. How is that? There are no standard rental rates in place and nothing set by the government; more often than not, the rental rates are negotiated by the cell tower companies and the landowners. Essentially, that means some landowners are paid a higher rental rate than others. Okay, so that doesn’t sound very fair, but, there are no guarantees when it comes to cell tower rates. So, how can you determine what the rental rate for a cell tower on your land will be?
New Cell Tower Rates Will Be Lower
Typically, companies spend hundreds of thousands of dollars searching for a new location to house the cell tower. Also, if they find a piece of land, they have to clear it (if an old tower is in place) and install the new equipment. It takes a lot of money to do and will impact the overall rental rate for that particular location. How? Remember, the company is already spending thousands to get the cell tower up and running and that means they’re unwilling, or even unable, to offer a higher rental rate. You have to understand, companies won’t always break the bank to obtain your land. However, cell tower lease rates can still offer a decent rental price. Click here!
Renewal Prices Tend To Increase Rental Rates
Once the initial rental agreement has come to an end, the company has the ability to renew their lease or extend the contract. However, this is where rental rates typically increase and a higher rental rate is offered. Why does that happen? If the company is happy with the location and has benefited their business, they may be inclined to offer a slightly higher rental rate to keep the site. That’s a useful option for you and it’s certainly something to consider. Also, cell tower lease rates have more room for negotiation since the company has no additional installation costs to absorb.
Rates Come down To the Specific Site Chosen
Generally, a residential area with a lot of houses or people will be considered an attractive location for cell tower companies. The same also applies for some rural areas. However, rural areas with limited cell tower coverage but an increasing population may be considered a prime location by the cell tower companies. How so? There is a demand for mobile coverage in that area and virtually no service for residents to choose from. Cell towers can snap up land and earn a lot of money. Cell tower lease rates are impacted by that factor too. Rental rates do vary, depending on the location of the cell towers.
Supplementing Your Income
It’s very much possible to earn two thousand dollars a month from a cell tower lease. However, the actual figure will vary depending on your location and the terms you agreed to. You might think the income is a small amount compared to what the cell tower company makes, but remember, if your property is a dime a dozen, they’ll look elsewhere. What’s more, some rental rates are more than generous (depending on the company you’re dealing with) and trying to push for them is greedy. At the end of the day, think about what’s an appropriate amount and what you’d be happy to receive. Cell tower lease rates can be a great way to supplement your income, so research rates in your area and get a fair deal. For more information visit: https://www.forbes.com/sites/bradthomas/2018/07/05/becoming-a-cell-tower-landlord-as-easy-as-reit/#5fb05dd178ad