Cellular tower leasing advice.

[Oldfield Guy]

I have been contacted about leasing some land for a cellular tower. Does anyone here have any advice.

[DoctorJJ]

Going rate around here is $5000-8000/year. I’ve got one on a 340 acre piece that I own. Verizon and they pay $5k per year. We are due for a renegotiation. Friend of mine has one about 15 miles from here and he’s getting $7500/year. It kind of depends on how easily available an alternative location would be and the amount of traffic on the tower. Both of which are things the landowner doesn’t easily know. Keep in mind, if you let them build, you won’t be able to insure anything within the fall radius, or if you do, it will be expensive.

[bassnpro1]

Going rate around here is $5000-8000/year. I’ve got one on a 340 acre piece that I own. Verizon and they pay $5k per year. We are due for a renegotiation. Friend of mine has one about 15 miles from here and he’s getting $7500/year. It kind of depends on how easily available an alternative location would be and the amount of traffic on the tower. Both of which are things the landowner doesn’t easily know.

I mean once they put the thing up and a lease expires, don't you pretty much have them by the nuts?

[DoctorJJ]

I mean once they put the thing up and a lease expires, don't you pretty much have them by the nuts?

Not necessarily. They will tear one down and move over to someone else’s land.

[RNKingCx19]

What happens when lease is up? Yard art? Shooting house? Least to an amateur radio group? Flag pole?

[keeferfish]

I mean once they put the thing up and a lease expires, don't you pretty much have them by the nuts?

Not necessarily. They will tear one down and move over to someone else’s land.

Not at all. The farmer we hunt on had one for years. The new lease they didn't want to pay him squat so he told them to remove it and they did. It was one that even had a fairly large brick building at the base. You would never even know it was there.

[1stindoor]

^^Friend had the same thing happen. Cell company acted like it was no big deal, came in, pulled it out, drove away.

[pantherdad]

Just don’t spend the money before signing contract. Cell company aggravated a friend for years to let them put up a tower. Finally told them yes, get contract written up. Been over a year and not another word.

[BWQK]

I have one on my farm.

Make sure they have a 3% or better increase every year in the contract. They may offer a signing bonus....5-10K.

They rate on my property is $7200 per year. They pay monthly like clockwork.

I would push for around 9K per year with the built in increases.

They will offer pay a lump sum vs a monthly lease. The value is somewhere between $104,000 and $120,000. At least that's what they offered. I declined because I'm satisfied with a 7% return. Also, it may hurt the market value if I've already reaped the financial rewards from it. If I sell, I'll show the potential buyer their offer and add it to my price.

[Nx591]

I worked for Verizon as a cell tech for over 20 years. Make sure it’s in the contract that the access road is kept up to standards. The tower owner usually has a separate company to maintain the road and compound. Make sure they remove all garbage after any construction or upgrades. You will have people coming in at all hours of the day and night during repairs or upgrades.