Thanks to the technology that promises increased capacity for greater connectivity, there is a lot of buzz around cell phone tower leasing. Often termed as 5G, fifth-generation cellular wireless has increased the demand to expand cell service to more remote areas.
Tower leasing activities in the US have increased since 2018 and the statistics concerning the year ahead indicate even more growth in the coming years. Landowners are contacted by cell tower companies daily, asking to build cell phone towers on their land and extend existing leases.
At first, having a cell phone tower on your land with exciting lease offers sounds great. The tower company will tell you the benefits of the agreement and show you how it’s a win-win situation. But before you sign the contract, it’s important for you to understand what are the pros and cons specific to your situation.
Pros Of Allowing A Cell Phone Tower Lease On Your Property
- Recurring monthly or Annual Income - The biggest benefit when structuring a cell cites agreement is the additional income. It’s that simple! You will either collect monthly rent from the cell service provider or get a lump sum payment for the revenues generated.
The cell tower site rent is determined in a different way than real estate value. The amount varies greatly and depends on the individual value of the tower as well as the negotiating strategies employed by the cell phone tower lease attorney. On the other hand, the lump sum payment transactions are structured in a number of ways -- from granting an easement to the buyer, to assigning the lease to the buyer, to selling the property altogether.
- Long-Term Profit - The rent for today is only the immediate profit and the short-term picture. What about the lease rates in the next 10 years? Sometimes the cell tower lease agreements are also structured for extended periods.
It is possible for the revenue stream to result in long-term financial benefits. In addition, it is also possible that the value of your land rises significantly due to the cell phone tower company’s use; which means stronger future lease negotiations and increased resale value.
- Improved Reception and Services - An immediate benefit for the surrounding area is improved reception and signals. All the subscribers of the involved cell phone service provider(s) will experience better service with less interruption.
- Visual Concerns - Many institutions are sensitive to any intrusions to aesthetic. This is true for residential communities, churches, college campuses and more.
Cell phone towers are very tall and hard to disguise, causing people to avoid buying houses around them. Though cell phone providers have made many attempts to camouflage the towers, they usually fail to “blend in”; causing people to consider them eyesores.
- Health Concerns - Various studies show that exposure to cell phone towers increases the risk of cancer.
For this reason, many people protest cell phone towers within their neighborhood. However, the risk can be reduced by measuring the RF field strength near the towers and ensuring they are within the acceptable range.
If you are considering a cell phone tower lease agreement, be sure to know precisely what is on the plate. Weigh the pros and cons.
The benefits can help you and your community. However, you’ll need to structure protection and flexibility for your land and rights. Before the negotiations begin, and the paperwork is signed, it’s essential to seek out assistance from a reputed Telecom Law Firm to review all your options.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.
By Sheena Jordan