Cell Tower Leasing Contract
Cell tower lease rates refers to an agreement between a landowner and a cell tower company for a specific duration(typically 1 to 3 years.) The lease gives the right to the cell tower company to set up the tower at the landlord premises. During the tenor of the contract, the tower company will also have access to the tower area and can come and go to check their installations. The landlord will provide uninterrupted access to the tower company throughout the tenor of the lease. The company tests for many premises before they decide a property for their installment. They will approach the landlord through the cell tower leasing agents who will work out the deal between the two parties.
The reason why cell tower companies prefer to enter a lease agreement is that cell tower firms work on the regular installation. They may require multiple facilities of the tower at different locations, and as such, they can’t buy land at each site. The viable option is to rent premises where they can set a tower and then can use it for a specific period. This strategy saves cell tower a lot of investment. On the other hand, there are property owners who are looking for such a leasing arrangement as it brings them guaranteed money from the cell tower firm. In terms of rentals, unlike a regular lease, having a company lease is always more stable and free from any complications.
Cell Tower Lease Rates
The lease rates are the terms on which the tower will operate at the landlord premises. Some lease rates will set a monthly rental, while others will be an annual contract where cell tower will pay the lease amount lump-sum in each year. These lease rates are an essential element of a lease arrangement, so both parties take substantial time in placing provisions to safeguard each other interest on the leasing terms.
Working out Lease Rates
Once the cell tower lease rates are in place, the term of the lease begins. Often the cell tower lease brokers will work with both parties in deciding the lease rates. As these are long-term arrangements, both parties must commit to the long-term leasing with the said rates. The agreement also lists down the conditions under which the lease rates are applicable. Violation of any points can allow either party to call for a revision in the leasing rates.
