Pros and Cons of allowing Cell Tower on Property?

[Diggin It]

Question:

Let's say you take the deal expecting to live there for the duration of the contract. A few years down the line, something happens, health, family, work whatever and you need to move. Can you sell the property and retain the annual lease payments? I'm not sure a buyer would go for that though.

 

[ponytug]

5G Ultrawide band antennas need to be every kilometer or so, as they have about a 500m (1500') radius; regular 5G is a couple of miles. That is just a result (physics) of the high frequency used. So more locations are needed. The same thing happened when the cell providers upgraded from 2G, which had a 10mile radius to 3G which has about a seven mile radius.

The flip side is that tower sites generally became less valuable, unless they were in urban areas.
What is the range of a 5G Antenna?

The frequencies chosen for cell phones are intentionally ones where water doesn't absorb, so weather isn't an issue. It also means that human bodies don't absorb the frequencies either, contrary to what you might read elsewhere.

All the best,

Peter

 

[bigtiller]

Question:

Let's say you take the deal expecting to live there for the duration of the contract. A few years down the line, something happens, health, family, work whatever and you need to move. Can you sell the property and retain the annual lease payments? I'm not sure a buyer would go for that though.

In my case, probably...
The tower owner will have first-right-of-refusal, should the property be sold.
But the management company has said that they generally do not buy land, renting is easier.

 

[ROUSTABOUT]

Fence off what they lease. Fence both sides of easement that goes to their leased property. Put two gates, one on each side of their easement road that only you have keys to, in case you need to move cows or get tractor across there.

If a lawyer is involved, there goes your money, so just read the lease good.

 

[LouNY]

Dang, They will fence off what is needed to be fenced if needed.
Too many people blowing something fairly simple into a nightmare.
Read the contract be aware of potential issues, think ahead, get everything in writing
right down to the nats butt.
Butt dang it is a fairly simple thing.

 

[TheMan419]

Question:

Let's say you take the deal expecting to live there for the duration of the contract. A few years down the line, something happens, health, family, work whatever and you need to move. Can you sell the property and retain the annual lease payments? I'm not sure a buyer would go for that though.

It would alter the value of the property for sure. I am sure he could immediately sell the future payments for a discounted lump sum today if he wanted to. Or take a lump sum directly from the tower company. But when it comes time to sell the land the sales value of the land will reflect that lack of income stream.

 

[Larry Caldwell]

25 years from now, $2500 will be about enough to buy a burger and a beer. Index it to the CPI and the rent will double every 5 years.

 

[TheMan419]

25 years from now, $2500 will be about enough to buy a burger and a beer. Index it to the CPI and the rent will double every 5 years.

That math is wrong. CPI/Inflation has been running in low single digits since the 80's. Looks like 2022 is about the blow that out of the water. At 5% it would take about 14.4 years for that rent payment to double. To get to 5 years you would need a sustained rate of inflation of 14.4% or so for the rent to double in 5 years.

Really the only time inflation has been above low single digits since WWI was right during and after WWI, WWII and the Carter years for the most part.... and now 2022. Who knows how long that will last, but don't count on it. Other than that low single digits.

Given historical inflation numbers it is likely that rent payment would not double during the entire 25 year life of the lease. That said yes it needs to be indexed to inflation or even 10 years from now you are not going to be getting good value for your lease.

 

[bigtiller]

Poles fall over. Towers collapse.

(I just made that up ).

That's about the size of it from what I was told by the people involved it building mine.

But to be a little more clear, they were talking about modern 3 legged free-standing towers.

If one of those fell over, something went drastically wrong and someone will have some explaining to do.

 

[ROUSTABOUT]

It would alter the value of the property for sure. I am sure he could immediately sell the future payments for a discounted lump sum today if he wanted to. Or take a lump sum directly from the tower company. But when it comes time to sell the land the sales value of the land will reflect that lack of income stream.

If he sells the property the lease should roll over to the next owner. May even make the land payment. If he keeps the lease then the property SHOULD bring less.