The Money Of Course!!
But How Do You Get That Right???
A properly structured cell tower lease not only pushes out cash flow via passive income to the property owner by way of the monthly rent checks the property owner is getting in the mailbox, but as that cell tower site becomes more valuable to the cell tower company, the property owner is getting paid more and more based not only on the amount of real estate that is being leased, but on the value that is being derived by the cell tower company and/or wireless carrier occupying and using that property.
Unfortunately, most property owners, real estate agents, real estate developers, and real estate appraisers do not really understand how to properly structure a cell tower lease agreement, so they are getting paid some rent, but miss out on the bigger upside.
Most people, when approached with a cell tower lease agreement, usually focus on the cell tower rents they’re getting paid under the lease and not the upside potential that cell tower is generating from being on their property.
Of course additional passive income, via the cell tower rent, is the biggest benefit for property owners when signing a cell tower lease agreement, but that is only a portion of the overall value.
The property owner will certainly experience an immediate gain via the additional cash flows being generated via the lease through monthly or annual rent they receive from a cell tower company; however, the amount of cell tower rent can vary greatly and will depend on the individual value of the cell tower and that value can increase greatly if the cell tower lease provides for the property owner to get more and more passive income from the cell tower company or wireless carrier, as that cell tower site becomes more important or valuable to the party leasing it.
As important as the immediate income that is being generated from a cell tower lease agreement is, it is also possible for the cell tower passive income stream to result in long-term financial benefit should the cell tower lease agreement be extended over not years but decades.
As a result, a property owner’s property value will increase due to the long-term revenue to be generated.
A cell tower lease agreement can actually be a long-term passive revenue stream, with unlimited upside potential as the cell tower adds subtenants and the wireless carriers modify wireless equipment such as 5G upgrades.
The average cell tower lease is undervalued by over one million dollars over the life of the cell tower lease agreement, so while getting the cell tower rent correct is important, getting the cell tower lease agreement structure correct is more important.
If you want to understand how to properly structure a cell tower lease agreement to not only get short-term but long-term benefit from having a cell tower on your property, contact us today.
Get More Money! Get A Better Lease!! Get Vertical!!!
