Cell Tower Leasing: Everything You Need to Know


Cell tower leases span across the United States ranging from a hundred dollars per year all the way to thousands per year. For example, the City of Davis, California closed a deal in 2012 that earns the city approximately 63 thousand dollars per year. 

In the US alone, there are more than 338,000 cell towers with an average lease rate of $45,000 yearly. Just in 2018, fifteen thousand new cell tower sites joined the national grid.

That translates to new opportunities for landowners as old leases expire and new cell tower sites are decided by companies to further increase their network range.

Navigating through complex agreement clauses of a cell tower leasing contract and negotiating your way through it can be overwhelming.

If you’ve been approached by a cellular network inquiring about your property, make sure to follow these simple guidelines from cell tower lease experts CellWaves to negotiate a better deal.


Understand the industry

Cellular companies have always relied on individual landowners for a property on which to place their cell towers. Whether they want to admit this or not, you will seldom find a cell company that owns the land on which they place their towers.

If a company representative approaches you about your land, here’s a piece of advice: don’t just take their word. Do your own research, ask around for help, learn the insides of the industry so you can get a good deal out of the companies approaching you, or simply get in touch with a cell tower consultant, like the ones from Terabonne.

Also know that cellular companies will often try to get large tracts of land from you. A cell tower usually takes up about 300 square feet, so don’t let companies take 10,000 square feet from your property for the next 30 years.


Know the Competition

It is in your best interest to know your own competition. You must consider the fact that the companies contacting you could also be talking to other potential landowners to get a cheaper deal. At the same time, the competition could also be between different companies to get your space as well.

If your property is in an area where there is high demand and where other telecommunication options are limited, your land could be extremely valuable for the company. Knowing your land’s worth and the competition in the local area are of high importance.


Attract Multiple Companies

Ensure that you have a sign on your property door or fence by the closest significant street that expresses that you have land accessible for rent by a cell tower company. Add your telephone number to the sign with a prominent goal, that specialists for the remote organizations have a decent method to reach you.

For more advertisements, you can post ads on different social media groups and build a simple website to advertise your property to different companies.



Cell towers use power. Your goal is to guarantee that the cell tower site is independently metered for power and that company gets a separate bill for it.

In addition to power, many cell tower companies also require a telephone connection to be in place with a separate bill.


Regulations by municipality

You as a landowner have to review the local ordinances in your county regarding whether your city allows you to construct towers on your property or not. Many counties require that you obtain an exceptional order prior to construction.

A good place to start is attending municipality meetings if they have cell tower rentals as a point of discussion on their agenda.


Important Clauses in a Cell Tower Leasing Agreement

  • A co-tenant rental agreement clause should be added to your contract. As time passes, some other companies might consider your land to be a lucrative place for their own cell tower. In the case that you don’t have such clauses, the company that you leased your land to earlier would have the right to all the profits from the second lease.
  • A lease termination clause should also be added in case you want to terminate the lease on a set of conditions, which should also be mentioned in the agreement.
  • Insurance provisions should be added so that the rental company can add your name to their insurance agreement. You should also tell your respective insurance company that your agreement has taken place and there is now cell tower equipment on your property.
  • You should also add a clause that details what will happen to the agreement in a situation where you want to sell the land.


Everything is Negotiable

Never settle for the initial offer. Often, companies offer up to 3 times less the market rate just to attract a potential landowner so that they can save money.

If you are making a deal for 30 plus years, do your homework on cell tower lease rates.

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