Cell Tower Lease Information
Because cellular service providers and cell phone tower companies cannot buy all the land for cell towers themselves, they enter into leases with those who do own the property. Cell phone towers need to be set up in grid formations with slightly overlapping signal ranges, so there are often specific places that providers need to set towers, or at least use cell phone towers that are already in existence.
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Definition
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A cell tower lease is an agreement between a property owner and another entity, usually a cell phone service provider. The provider leases a part of the owner's property to build and maintain a cell phone tower for their grid. The leases can vary in specific terms and requirements, but most involve some type of monthly or quarterly payment to the owner for permission built and use the cell tower on their property.
Choosing Locations
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Most property owners with spare land or land in a location they think ideal for a cell tower cannot simply offer the land to cell phone providers. Providers have complex plans that show them ideal locations for their towers, and it is much more likely that they contact owners with lease offers. Providers send out a site acquisition agent with GPS technology and the ability to negotiate on behalf of the company.
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Through Tower Companies
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For those who want to seek out a cell tower lease for a section of their property, owners can seek the assistant of a cell tower company. These companies build towers on the land for providers and take care of many negotiations for the owner. As payment, they typically take around 50 percent of the lease payment themselves.
Lease Qualities
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The property to be leased must usually be 2,000 to 2,500 square feet, with enough flat topography to construct the tower and easy access points for the frequent maintenance that cell towers require. Sometimes the owner must obtain a permit or approval to lease land for this purpose. Most leases for cell towers last about 20 years, and may be split into five-year segments. Monthly payments range from $800 to $2,000, depending on the desirability of the location.
Considerations
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Most cell providers will only enter into a contract with a property owner if they retain the right to terminate the lease at any time. A fair lease will typically have caveats that allow some type of compensation to the owner in case of this sudden termination. The owner must also often ensure that the area remains accessible and continues to pay property taxes and other associated fees.
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References
- Photo Credit Cell tower image by Ungor from Fotolia.com
