While having a cell tower lease is a great way to earn significant side-income for landowners, they come with their set of advantages and disadvantages. For example, once you lease your property to a cell tower company, the contract will usually last for a duration of 25 to 50 years. The industry standard for a cell tower lease is 25 years. This is both good and bad.  Cell tower developers do not want to spend $250,000 (not including the cellular equipment)  and take two years or more to lease and build a tower that has to be taken down in ten year’s time.

Tower Genius, the USA’s premier cell tower lease consultation company for property owners and landlords has shared the most obvious pros and cons of cell tower leases below with a good look at cell tower leasing rates in 2020.

The Pros of Cell Tower Leases

Significant Side Income If Done Right

An “average” cell tower lease can generate anything from $900 – $1,000 per month depending on your location. It is important to note that cell sites in major metro ares pay more and the rural sites tend to pay less. In the Idaho Panhandle for example, we saw a cellular carrier paying farmers in remote areas $100 per month, while two hundred miles north we’ve seen rural single carrier cell towers paying over $2,000 per month. Cell tower rents usually increase by 10% to 15% every 5-year terms, or by 2% or 3% percent every year, depending on the terms that are negotiated. And the cell tower leasing representatives are incentivized to pay you less.  

Almost No Maintenance Required

So if you think you’ll never have to worry about repairs, upgrading the property or spending any money, that is true as long as your lease agreement is properly structured.   

Maximum Use of Unused Space

A cell tower company usually requires a 100′ x 100′ portion of land to build a tower and a cellular carrier usually asks for about 50 -150 square feet of rooftop space to install a cell site.

Cons of Cell Tower Leases

Encumbering Your Property For A Long Time

Many people are not comfortable with the long-term encumbrance of a cell tower lease agreement which is perfectly understandable.

Hidden Costs – Devil’s in the Details

Need Professional Help 😀 ?

Don’t go it alone. If you’re not sure what your cell tower lease is worth, contact the experts at Tower Genius today and let us help you find the true value of your land and the cell tower rent rate you should be getting. 

Call Steve or Kevin at Tower Genius today at 1-888-313-9750.