The construction of cell phone towers is making news, all over, for both positive and negative reasons. Like many other issues of public interest, there are divisions among the community. Someone who has a property and space to spare for erection of a tower is keen to have the tower setup fast so that the rental income can accrue. But there are others who oppose citing environment reasons and how it affects the air quality and the livelihood of birds. There was this recent case of a school in Coshocton, Ohio, entering into an agreement with a cell tower company and the public in the county is opposing it. The local council has finally sorted the issue out and even passed a local legislation regularizing the cell site leases in the county for the future.
The Rental Income the Biggest Attraction
The play within the cell tower leasing space is multi faceted. The mobile carrier companies want to set up more towers to make the cell phone usage experience for their customers better. They appoint agencies under contracts in each identified locality to rope in property owners to lease out their rooftop for constructing the towers against a down payment and also a monthly rental. The property owners see an opportunity to make an earning on an ongoing basis. Now the cell tower lease market rents are determined by different factors, which make this subject quite interesting.
Based on the customer feedback the tower company might be under pressure to set up towers in particular localities or neighborhoods. Now if the property owner gets to know this fact, he or she would up the offer price. A tough negotiation will follow. Some local agencies might also jump in the fray and offer their services to the property owner to get the best deal for them from the new cell tower lease company. In the example cited above, for example, the concerned school had received a payment of $50, 000/= and the regular monthly rent agreed to was $1200.
Lease Extensions also Equally Sensitive
These cell site leases are generally time bound and are up for periodic extensions. This also pits most of the players back into the equation each one trying to score over the other. The lease company would want the cell tower lease extension to be done either at the same rental amount or to reduce it and the property owner would want it increased. Finally, there is an agreement reached. In fact, many of the original factors will again come into consideration. How important is the location of the particular tower under extension to the cell phone carrier company? Has the overall market for tower rentals come down and should the extension be granted at a revised lower rent? If the owner turns it down, and you need another tower in the area, do you have a property owner ready to sign an agreement at the lower price?
Obviously, cell site leases evoke a lot of public interest in more ways than one. In most such cases, the larger public interest prevails instead of any narrow selfish considerations. Whether it is a fresh lease or an extension, the property owner should get a fair deal, and the tower company must allay the fears of the public on any harm to the environment. For more details, just visit http://www.celltowerleaseexperts.com/cell-tower-lease-buyouts-2/.