3 Things That Landlords Ought To Know On Cell Tower Lease
When a landowner is approached by cell tower companies and asked for permissions if they can install their wireless equipment or cell tower on their land, they need to know what are their bargaining powers in order to make the deal in their favour.
Basically, there are several factors that ought to be taken into proper consideration when making negotiations with these big companies. For instance, the characteristics of the property or the building will be assessed like to how tall it is, does the property has topography attributes which makes it distinctive to other areas. Furthermore, the tower company is going to look through various options such as what they can get from other buildings or properties that are in the same location and with same zoning and layout classifications. And maybe the most important is, if the building can provide sufficient space for the cell tower company not only to construct their Cell Phone Towers but also, if allows them for the possibility of making expansions in the future.
For the landowners on the other hand, there are 3 important things that should be remembered to make the best out of this deal and this includes the rental fees, sublease and co-location fees as well as the cell tower lease and commencement. Read on to learn more about each said factor.
Number 1: Rent - this is being offered based on numerous dynamics. Well, among this, the most significant point is the space needed by the cell phone carrier or the tower company in installing their equipment. Know more about this from the site at http://dictionary.reverso.net/english-synonyms/cell%20phone%20tower. Apart from that, they also check the overall functionality and utility of the location for their company. The space either of the rooftop or the ground is going to depend on the equipment that has to be installed on the building.
Number 2: Co-location Fees & subleases - cell phone carriers are constructing their towers primarily for the reason of improved functionality. But in case of a tower company, they are building cell towers out of increased revenues. You may simply think of these companies as a strip mall above buildings. But does this mean that the landowner has to have a part from the profit that the company generates? Apart from the monthly rents, the landlord also needs to be aware of the possibility of garnering additional rent from the revenue sharing with other tenants.
Number 3: Commencement and cell tower leases and buyouts - the landlord is usually asked by the tower company for a long term commitment. These Cell Phone Tower Lease Buyouts will normally take a minimum of 5 years terms with 3 to 5 years of successive options for the renewal of terms.
