Cellular phones have revolutionized communications. However, it’s important to remember that they cannot work by themselves. They are only as good as the signal they get from towers around an area. If there is a strong signal, then messages can be sent quickly and calls can be heard clearly. Mobile internet connections will be fast as well. Large telecommunications companies enter into cell tower land lease agreements so that they can build more structures across the country. By opting to rent, they can reduce their costs while they improve their flexibility. If you are a landowner who wants to enter into this kind of agreement, then read on for more information.

The Increasing Need for Cell Towers

The immense popularity of smartphones cannot be disputed. Aside from personal communications, we have also come to depend on these devices for online shopping, news updates, mobile banking, video gaming, note-taking, content streaming, and remote working. People need reliable service to accomplish all of their tasks. There is a pressure on companies to deliver by increasing the density of their towers in different areas and ensuring excellent coverage. Additional stimulus is coming from new technologies that deliver faster connectivity at the cost of limited range. More towers are needed to make them effective.

The Long-term Nature of Leases

Building a cell tower land lease is not a trivial matter. Companies spend a substantial amount of money to get these projects off the ground. The average cost is almost $200,000 per tower. There will also be maintenance costs, equipment costs, labor costs, and other expenses. It doesn’t make sense for companies to take the leases lightly. They usually study the location and make offers based on long-term projections. They want to lock in the rights to a place for years or even decades. This is great news for people who are looking for an easy way to make passive income in a reliable manner.

The Wide Range of Lease Rates

Just remember that the offer will vary depending on the location, network requirements, population density, and other factors. If you own land in a city, then you can probably expect a higher monthly payments from the companies. If your land is in a remote area, then the rate will be much smaller. Some estimates peg the annual rate between $100 and $45,000. If you wish to get the best deal possible, then talk to a consultant who can provide advice and negotiate on your behalf.