The Benefits Of Cell Tower Leasing

Cell tower leasing can benefit landowners in a number of ways; as not only can it provide a profitable financial investment, but it can also add value to properties, and generate long-term income for both companies and individuals.

One benefit of cell tower leasing is that it can provide either a family or a company with a source of “passive income”. Passive income is a term used to define a source of income that requires little effort or management, and cell tower leases typically do not necessitate either. Once construction is completed, landowners are not required to maintain or oversee the tower. They simply lease their land to a cell phone company, who assumes all physical responsibilities.

A second benefit of cell tower leasing is that cell towers are no longer installed exclusicellular-tower-28883_640vely on plots of empty land. Owners of tall buildings, located in highly populated residential or commercial areas, are viable candidates for cell tower leasing. In fact, installing an antenna on a preexisting building can generate more money for property owners, as it eliminates the added expense of building a tower.

Cell tower leasing can also benefit landowners, as it usually does not require owners to invest any capital. Most cell companies will not require an initial payout from the property owner, which means that the investment is safe and relatively simple. This can benefit new landowners, in particular, as they typically lack experience in property management or leasing, which can make other more complex leases less feasible.

Colocation is another benefit of cell tower leasing. Colocation also referred to as “collocation” or “co-location”, is when a single cell tower is used by multiple cell companies- in particular, wireless providers. Landowners who qualify for collocation can significantly increase their revenue by leasing their land or existing tower to various cell phone companies. This means that instead of receiving one source of passive income, landowners can receive two or three.

If individuals own property in a particularly profitable location, then they can also benefit from lease competition. If their land is located in a residential or commercial zone and has little to no frequency interference, then it may be in particularly high demand from cell phone providers. Not only does this mean that landowners have the option of colocation, but all that they can use this competition as a means to negotiate higher rental rates. Higher rental rates, in turn, would create a more substantial income that can benefit owners financially.