A telecommunication company approached you for a deal. They want to mount a cell tower on your property. This idea is great as it will enhance your annual income. But you’re facing a challenge. As a first-timer in such deals, you have little to zero ideas on how to secure better cell tower leasing rates.
What’s more, most of the information you are encountering is advising you to involve an expert. The idea of a third-party is not sinking in your mind because you are not ready to pay for the hefty fees that such experts charge or simply don’t know where to find them. If this is your case, you can utilize these ideas to secure high leasing rates on your property:
Understand the Type of Lease the Telecom Company Is Seeking
Different cell site leases will attract varying rates. A ground site will not go at the same rate as a rooftop. Additionally, the company may be seeking an expansion lease. The goal of this type of lease is acquiring an extra space for expansion or upgrading purposes. A property owner needs to understand the type of cell site lease a cellular provider is seeking to determine the rates to charge them.
Location of the site
The location of your property matters a lot. The rates of a cell site lease are high on congested areas than less populated areas. Such areas pose a challenge to the telecom companies, especially when it comes to finding a space for mounting their cell tower.
If you have a property in such cities, you can secure more than $3,000 per year on the cell tower lease. This case will be different in spacious cities and locations where finding a space is not a challenge. So, you need to consider this aspect when determining your cell tower lease rates.
Consider alternatives available for the companies
With technological advancements, new ways of minimizing costs are coming up. Telecommunication companies are getting new options for mounting cell towers. The use of microcells and femtocells is becoming a replacement for the traditional cell towers.
Even though the small cells will require space, their lease rate is relatively cheap. Accordingly, you need to consider this aspect when setting your rates. If the company has an option to a cell tower, charging them high rates will lead to a lost deal.
Bottom-line
In a nutshell, securing high lease rates is not easy. However, paying attention to the above highlighted ideas when negotiating your lease rates for a cell tower can harness your success.
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