Leasing a cell tower can seem like a simple solution to an ongoing business problem. You own the building and land; you have access to a fixed space, and you can plan your franchise expansion around it. However, leasing your cell tower is also a complicated decision with many factors that should be considered before you sign on the dotted line.
Here are some tips to consider before signing your cell tower leases:
Contact your Service Provider before You Lease
Before you begin the leasing process, contact your service provider to understand their process better and the additional costs involved. This is especially important if you lease a cell tower from a private owner. Most cell tower owners are happy to show you their property and discuss the lease process.
So, before signing a cell tower lease, you should always be aware of the extra costs involved. This will help you make an informed decision about leasing your real estate. Contacting your service provider will also allow you to get a better understanding of the technology that their wireless network is using. This will help you better plan your network technology and equipment needs.
Know the Benefits of Leasing
Depending on your lease situation and the specific details, there may be some significant benefits to leasing your property. Let’s take a look at some of the benefits of leasing your cell tower:
You don’t have to worry about maintenance and equipment costs:
When you lease your cell tower, you don’t have to worry about maintenance costs or damage to the equipment because your lease will cover both. This is especially true if your lease will cover the equipment’s entire useful life, which is often the case when you lease a cell tower.
You can expand your business easily:
If you lease your property, you can expand your business quickly and easily by simply leasing the same space again or another piece of property.
You can expand your network quickly:
You can expand your network quickly by simply adding more equipment to your existing lease. The more leases you have, the greater your network coverage will be.
You can decide when to sell the lease:
If you decide to sell your lease, you don’t have to worry about your vendor having a set term to lease the property.
You can decide when to end your lease:
You can decide when to end your lease, which can help you plan for the future if you want to purchase the property or if you want to expand your network without having to lease the property again.
Your vendors may be more willing to lease:
They may be more willing to lease because they know that you are leasing the property, and they may be willing to give you a better deal on the lease because they know that you will be replacing it at the end.
You can lease a multiple-use building:
You can lease a multi-use building and split the lease between multiple tenants.
You might be able to get a better lease rate:
Your vendors may be more willing to lease because they know that you are leasing the property, and they may be willing to give you a better deal on the lease because they know that you will be replacing it at the end.
Think About the Term of Your Lease
The term of your lease is something that you should always keep in mind when you decide to lease your real estate. The lease term will determine how long you rent the cell tower or how many years your lease is.
The shorter the term, the less you will have to pay each month and the less risk you take. A 10-year lease, for example, will cost you much less than a 30-year lease. However, the term of your lease does have some risks, too.
Generally speaking, you should only lease for ten years at most. This is because, in most parts of the country, the average time people use their cell phones is about seven years. By then, you would have paid for your lease several times over and would have to replace your equipment anyway.
Moreover, by then, you will have outgrown your current technology and might have to invest in new technology.
Do Your Research for End-Of-Lease Cleanup and Disposal
As a business owner, you are responsible for knowing all the costs involved in your decision to lease a cell tower. As part of your research, you should look into the cleanup costs and disposal requirements for end-of-lease cleanup and equipment disposal at the end of the lease term.
In some cities and counties, leaseholders are required to clean up their property at the end of the lease term and are required to pay for it. Similarly, the leaseholders are required to pay for the disposal of the equipment at the end of the lease term.
Estimate All Costs Before Signing a Lease
When you sign a lease for your cell tower, don’t rush into a decision and sign the lease. Instead, estimate all the costs involved, including the lease payments, taxes, and lease terms. For example, if you lease a 20-year cell tower from a private owner, you can assume that the monthly lease payment will be $2,000, taxes will be around $450 per year, and the lease term will be 20 years.
You can also use these estimates to help you estimate the other costs involved in the cell tower lease. These costs include the cost of the insurance, the equipment, and the lease term.
Don’t Rush Into a Cell Tower Lease Decision
Leasing a cell tower can be a great business decision and help you meet your real estate needs. However, you must be careful when deciding to lease or buy a property. You should always ensure that your business needs are being met and that you are making the right decision for your company.
It would be best if you never made a final decision to lease or buy a building before properly researching the decision and ensuring that your business needs are being met.