Although the general public may be under the impression that the placement of a cell tower is a simple process, this is by no means true. Before the tower can be placed on a site, there are numerous factors to take into account, with one of the most important factors being that of the cell tower lease agreement. This is the agreement that is drawn up between the wireless carrier and the owner of the site where the tower is being placed.
Points to Look for Before Signing Tower Leases
One of the main aspects to look out for in a cell tower lease agreement is the tower lease rates. This will help determine whether you will receive a fair market value for the rental of your property. Included with the tower lease rates, provision should also be made for annual escalation in the rental price. It is important to ensure that the lease stipulates exactly who will be responsible for the maintenance and upkeep of the cell tower while it is being housed on your property. While the tower lease rates are a crucial part of the lease agreement, provision should also be made for site restoration at the end of the lease term, as this can be a costly exercise.
How Much to Expect for Site Rental
Tower lease rates can vary substantially. A few factors determining the lease rates may include, but not be limited to, whether or not the tower is on a rooftop and how much in demand your particular location is by wireless carriers. At present, tower lease rates can vary anywhere from around $1,500 to over $5,000 a month. Depending on how long the contract term is, a landlord can earn quite a substantial amount of money for simply renting out a portion of his or her property. In some cases, tower lease rates can end up running over the $1 million mark. This could be an ideal avenue for schools and hospitals to generate much-needed additional income.
Before signing any tower leases with wireless carriers, it is imperative that these documents be carefully inspected by an attorney of your choice. This will not only ensure that you receive a fair rental price for the use of your property; it will also ensure that you are not held liable for repairs and running costs associated with having the cell site on your property.