Investing in The Future: The Basics of Cell Tower Land Leases
August 10, 2017 (Investorideas.com Newswire) Landowners have countless opportunities and possibilities for making money off of their land. Several of the most obvious and common techniques involve building residences, creating a small business, farming, foresting and other such methods, but these all require heavy involvement and lots of work for the landowner himself. It could also involve a high level of risk if these ventures are unsuccessful.
Depending on the geographical area, the size of the land, properties already in existence and several other factors, there may also be many ways of making money off of the land with very little personal involvement and no work whatsoever. One way that many smart and lucky landowners are able to turn their land into profitable income without selling it, making a personal investment or taking a large risk is by leasing it for cell tower construction.
Cell Tower Sites
In our fast-paced modern world, everything is mobile and digital. If you still know anyone under the age of 65 who does not own a cell phone, you are likely in the minority. We use our phones for everything from personal communication and professional correspondence to photographing our lives and finding our way on the road. And that is just the important stuff.
Modern Americans use smartphones as a part of nearly every daily activity, and we are as attached to them as we are our our limbs. But in order for these magical devices to instantly connect people all over the country, there need to be cell towers that provide the service we all need. Cell towers connect calls, texts and data and route them to the through a vast, complex system to their corresponding networks.
There are over 308,000 cell towers in the U.S., and the need for more is continually growing. Last year alone, over 9,500 new cell sites were added, and every cell tower needs land on which to be built. While some carriers and companies own the ground on which their towers exist, the vast majority are built upon land that is leased by independent landowners.
Benefits of Leasing
Since cell towers take up a relatively small amount of space and they are interspersed throughout many different areas, it can make more sense for corporations to lease the land. Since they provide regular, recurring income with no work or risk from the landowner, it can be a mutually beneficial agreement for both parties. Depending upon a number of factors, leases for cell towers can provide a substantial amount residual income for the person who owns the land.
The main-- and most obvious-- benefit of leasing land for a cell tower site is the amount of money it can potentially produce. The average annual rate for a cell tower lease in the U.S. is $45,000, and the average American income per capita is $44,410. In addition to providing more money than the average job, leases for cell towers pose very little involvement and nearly no financial risk for the landowner.
Leasing Your Land
Experts say that there a number of factors which could make a piece of land eligible for a cell tower lease, including:
- Geographic area
- Construction conditions
- Zoning and permitting regulations
- Land elevation
- Access to power/utilities
- Location of other towers
- And several others
If you are considering leasing your land or you have already been approached by an acquisition agent, you will need to consider your situation carefully. The deal they offer upfront might seem very tempting, especially if you are not using the land for some other purpose. Technology is the future and who knows what other amazing use the tower could have in a decade or more. It seems like a once in a lifetime opportunity.
Negotiating the right deal, however, is always important, and companies will take advantage of those who will let them. You should do your own research on rates and other factors, and you may need to reach out to an expert to help ensure you are getting a fair deal. In some cases, agencies can bump the initial offer by 300% and much more. Whatever offer may come your way, make sure to know the value of what you're giving over.
Lauren Webber is a former HR manager and lover of psychology who now runs daintymom.com among her other pursuits. Her interests range from the corporate world to health and self-care to home improvement and parenting. Now if only someone came up with a way to extend the day by about 20 more hours, she could dedicate herself to all of these equally and constantly.
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