There are couples of things that you should know before you discuss any tower lease rates with anyone. When a company decides about the tower lease rates, it considers number of aspects and sees through the lease from different perspectives. Usually, it depends on each particular situation and the parties involved in the tower lease. A few other factors that determine tower lease rates are discussed below.
· Type of lease or agreement: It matters the most that whether the company and the owner are getting a new agreement and talking about a completely new lease or they are just going to renew an old or expired lease. When it’s a new lease, the cellular company has the upper hand and has all the benefits. It negotiates at any terms and conditions and the owner of the property doesn’t get to negotiate much. On the other hand, when it’s a renew lease, the owner has the upper hand. When a company is already operating a tower on a property, it can’t make the owner angry or it has to search for new place to construct new tower in the area. The company will have to move all the equipments to new site and it will cost a lot more than just paying the owner high price for lease.
· Worth of the site: It may seem that it shouldn’t matter for the cellular company how much the property worth and what is its market value, but it matters a lot. The owner decides on the tower lease rates by analyzing the property and its worth. If the property is worth more, the lease will be expensive and if it is not that expensive, the company can agree with the owner to lease the site on lower rates.
· Does the company have any alternate site in the area? If there is more than one site available in the area, the tower lease rates will automatically decrease and the owner has to agree on the same or the company will move to another site and negotiate with that owner.
· Is there going to a new tower or the company will use an existing building? If the company wants to construct a new tower on the property, the tower lease rates will be higher because owner also knows there will be a lot of construction on the property and there might be some damages to the property also. On the other hand, if the company wants to install the equipments on the existing building or tower, the rates will be low as compared to the other construction.