– Have you been approached for a new cell tower and you are trying to determine if the cell tower lease advantages outweigh the cell tower lease disadvantages?
– Are you trying to find out how to get a cell tower on your property, but need to understand more about the pros and cons?
The 4 Advantages of a Cell Tower Lease
Here are the primary reasons that landowners choose to say yes to a cell tower on their property:
1. Get Rental Income
A cell tower will generate rental income for you, your family, or your business. Most tenants are billion-dollar telecommunication companies that will pay on time and for decades into the future. Moreover, the rent will escalate as the years go by. If you negotiate specific terms, with the help of a cell tower expert, you may also be able to increase that rent with the addition of more subtenants on the tower.
2. Get Better Reception
Although your service has to be the same as the wireless carriers on the tower, a cell tower lease provides an advantage of better cell phone reception. Many parts of the country still have gaps in coverage. By having a cell tower, in addition to getting income from the rent, you can stay connected with your network without having to worry about dropped calls.
3. Cash Out the Lease by Selling It (aka Lease Buyout)
A cell tower lease is an asset that you can sell in order to get a lump-sum payout. Basically, a buyer will pay you in exchange to receive the rent and the lease rights for a certain amount of time – usually 50 to 100 years. This can provide a great way to generate funds for a variety of important needs that property owners may face. To learn more, please see the 10 Benefits of a Cell Tower Lease Buyout.
4. Increase the Overall Property Value
Since the cell tower lease generates income, that cash flow helps raise the overall value of the property. Of course, this could potentially be offset by any aesthetic issues of the tower as detailed in the potential disadvantages below. However, many property owners have still realized a property increase based on the hundreds of thousands – if not millions of dollars – a cell tower can generate over its lifetime.
The 4 Disadvantages of a Cell Tower Lease
Here are the main reasons a cell tower may be a disadvantage for your particular situation:
1. Aesthetics
Even a well-built, beautiful cell tower, can still be an “eye-sore” to some property owners. Many areas of the country require stealth, or concealed towers, so it minimizes this issue. You may have seen towers designed to look like trees, flag poles, or other building structures so they are not readily apparent. Yet, it is still a cell tower.
2. Property Value
As previously mentioned, the overall property value may have the potential to decrease with a cell tower. That is because a potential buyer may not like the aesthetics of it, or maybe the lease prevents them from developing the property the way they want in the future. These issues can be solved with hiring the right cell tower lease consultant to ensure your cell tower lease allows for different variable, but it still may be an issue.
3. Maintenance
Just like any other piece of technology, the equipment must be maintained and upgraded. A cell tower is no different. A landlord can expect to have periodic visits onto their land from technicians that are making sure the cell site stays operational. This is usually done without any disturbance to the property owner, but it is something to consider.
4. Health Considerations
Some landlords are concerned that having a tower close to them may cause health problems. There have been many studies performed that show there is little evidence to support this claim. Since the level of energy from the radio frequency (RF) waves is low, it is not enough to break the chemical bonds in DNA molecules. Also, the RF waves present at the ground level is low, which is similar to radio and television signals. For more information, please see a study by the American Cancer Society.
Find out more about the benefits of a cell tower
lease today with your free consultation.
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