# Leasing land to Verizon



## Robert28 (Aug 9, 2013)

Verizon recently contacted me with interest in leasing a small part of land from me to place a cell phone tower. I was curious if anyone on here has done this and what are some ups and downs of it. It's easy to want to jump on $6,000-6,600 a year with doing nothing, but you know the old saying "there's always a catch". I own around 750 acres so it's not like I'll be giving up much land, and it will be located far away from my house according to the site they have shown interest in. My concerns are with this being extra income, you know the government (federal and state) are going to want their share, will this tower decrease my land value substantially, are there any other drawbacks I'm overlooking?


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## Miguel Cervantes (Aug 9, 2013)

Robert28 said:


> Verizon recently contacted me with interest in leasing a small part of land from me to place a cell phone tower. I was curious if anyone on here has done this and what are some ups and downs of it. It's easy to want to jump on $6,000-6,600 a year with doing nothing, but you know the old saying "there's always a catch". I own around 750 acres so it's not like I'll be giving up much land, and it will be located far away from my house according to the site they have shown interest in. My concerns are with this being extra income, you know the government (federal and state) are going to want their share, will this tower decrease my land value substantially, are there any other drawbacks I'm overlooking?



I have had a couple of clients that have cell towers on their land. The lease rate they are receiving seems a bit higher than what you have been offered, but then, they negotiated their contract with the initial tower and one service antenna on it. Any additional carriers antenna's added handsomely to the tower lease price. They (Verizon and all others) lease space on their tower to all kinds of carriers. Make sure they don't have free reign to add on without paying you your fair share for each carrier added to the tower. 

It's a great supplement to offsetting your property / land taxes.


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## TREY1984 (Aug 9, 2013)

Ask them how many customers are they planning on covering in that area. Your probably getting 1% of what they are making. And how much more would you have to pay on land taxes if you place it on your land?


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## Robert28 (Aug 9, 2013)

Miguel Cervantes said:


> I have had a couple of clients that have cell towers on their land. The lease rate they are receiving seems a bit higher than what you have been offered, but then, they negotiated their contract with the initial tower and one service antenna on it. Any additional carriers antenna's added handsomely to the tower lease price. They (Verizon and all others) lease space on their tower to all kinds of carriers. Make sure they don't have free reign to add on without paying you your fair share for each carrier added to the tower.
> 
> It's a great supplement to offsetting your property / land taxes.



Thanks! I was thinking the same thing about it supplementing my land taxes. I wasn't aware that other cell companies used the same tower, I just figured since it was Verizon that they'd be the only ones using it. I have not received the contract yet (haven't even accepted their offer, just learned of their interest this week). I have several attorney's in my family that would gladly read over the contract for me if I bought them a steak dinner or gave them some football tickets to a USC game, so I wouldn't be "going in blind" as they say. I have heard there wasn't much/if any room for negotiation on the amount for the first tower and that they had other sites they were also considering and would just go there instead if I gave them too much headache.


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## T-N-T (Aug 9, 2013)

Robert28 said:


> Thanks! I was thinking the same thing about it supplementing my land taxes. I wasn't aware that other cell companies used the same tower, I just figured since it was Verizon that they'd be the only ones using it. I have not received the contract yet (haven't even accepted their offer, just learned of their interest this week). I have several attorney's in my family that would gladly read over the contract for me if I bought them a steak dinner or gave them some football tickets to a USC game, so I wouldn't be "going in blind" as they say. I have heard there wasn't much/if any room for negotiation on the amount for the first tower and that they had other sites they were also considering and would just go there instead if I gave them too much headache.



And there  is the problem.  Are they bluffing? Or not?  I have heard, you know, from a guy, a long time ago...  That the towers paid close to 1k a month.  You are offered 500...  But I too was unaware or multiple companies on one tower.  But, if it doesnt cost you money, free money is free money.  You lose an acre or so to there fences.  Over the years you profit that money back several times over.    I also imagine that they can only put towers on parcels that have a minimum number of acres.  So, me only having 10 acres likely will never have an offer from verizon.  Even though I desperately need some better service at home


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## Luke0927 (Aug 9, 2013)

my cousin's grandpa has one in Forsyth co GA...I pretty sure he is getting $1200 a month...its a Verizon or ATT.  The fenced it in keep it maintained honestly pretty dang good deal.


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## K80 (Aug 9, 2013)

Hire an appraiser that specializes in this type of work to find how it  will impact value of your land.  An appraiser that specializes in this type of work will or should know typical incomes for similar towers in similar areas.

I've had a contract come across my desk for a similar amount to what you mentionhowever, I don't know if it was a good deal or not.


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## Dr. Strangelove (Aug 9, 2013)

I used to work for Verizon, though in sales, not land acquisition or tower placement.  I did pick up a few things here and there, though.

If Verizon is approaching you, then their engineers have determined that they have a coverage hole that your property is ideally located to fill in with a tower.  They may have other sites, but while cell towers don't necessarily need to be in a specific spot, they don't have a huge range either.  

I used to hear $1000 a month and free cell service for the family as common for these types of leases.  

My advice would be to contact a real estate firm or attorney that specializes in tower leases to ensure that you get the best deal that you can.

Yes, most towers hold more than one cell company's antennas, as well as various local, state, and federal agencies' communications gear.


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## SGaither (Aug 9, 2013)

What hasn't been discussed here is how much are they leasing and how are they getting to their lease area? 
Tower companies (such as American Towers) or cell company owned towers, as is this case, typically lease 2 acres for the tower, pad, guy wires and equipment cabinets. BUT, there is always a but, the also gain an access easement from the nearest road to their site and often if the easement is quite a distance through a field or woods they will gravel from the road to the site and will place a locked gate at the road. Their people will have the right to go in on this easement 24/7 for maintenance or service. This could be an issue if you have livestock or other uses on your property where this type of access could be detrimental.
I'm not familiar with the monthly fee you'll garner but I have heard $1,000/month is fairly typical and an additional fee based upon the number of carriers on the support structure (tower). Depending on where your property is located and the height they are proposing it may have to go through a zoning process such as a special use permit. If this is the case you may want to ask for a nonrefundable earnest money so if the zoning request is denied you've been compensated for your time. You won't be the one applying for the zoning process but you will have time invested a the property owner.
If the tower is 200' or higher it will require FAA approval and you'll get a fancy red flashing beacon. 
These are just a few things to consider. Good luck.


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## EAGLE EYE 444 (Aug 9, 2013)

Robert28,
I think that several posters have given you some good advice here.  I had someone tell me a few years ago that they were being paid between $16,000-$18,000 per year for leasing a very small part (I think about 1/4 acre maybe) of their property for use as a cell phone tower.  It was located in their cow pasture and was fenced very nicely with a 6-8 ft tall chain-link fence with 3 barbed wire strands on the top of it, etc.

Of course, you got to think about an egress easement in them being able to drive right to this site on your property as well.  In the case mentioned above, the tower is right along a paved road with a drive-way that is only 50 yards long at most from the pavement and the tower is at the end of the pasture on this person property.

Sure hope that you can get all of the details and make an informed decision before signing a lease as such.


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## JustUs4All (Aug 9, 2013)

This may not have an impact on you at all.  

In GA we have Conservation Use Covenants available which allow agricultural and forest land to be valued significantly lower for property tax purposes.  The covenants run for 10 years.  If you have such a covenant you will want to determine whether this lease might put you in breach of the covenant as the consequences could be severe.


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## Georgiadawgs78 (Aug 9, 2013)

Well from my experience in the cell tower industry I believe that should be a little low in lease price. But I know technology is advancing and tower location isn't as big of a deal as it was in the past. From my conversations with land owners I would say the average monthly lease price is around $900. I deal mainly with ATC towers but since they are just a management company I would think they would pay a lower price then say Verizon since ATC's profit is coming from the carrier that is leasing the tower and site area. Where as Verizon is making its profit straight from the phone users itself. 

Also it is common for the lease price going up upon the addition of each carrier added. Usually sites have a max of around 4 carriers depending on who is on. People such as livewire, metro pcs, wind stream, cricket and so fourth take up way less space compared to AT&T, Verizon, and sprint. 

I would also say the most common lease space area for ATC is 100x100 area. They usually lease more than what they need and expand the compound in the future if needed. 

I'm not real familiar with Verizon sites but if they are anything like crown or ATC they should be kept up really good. They usually spray herbicide and keep things looking good. Good luck on which ever route you take.


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## westcobbdog (Aug 9, 2013)

Make them pay for a survey, not a boundary line survey but full blown alta survey showing title like easements,ect..ask for an rent escalation annually, also make them name you as a named insured, ask them to improve your land with planting, gates, or anything else you need. Before you sign off have a local real estate lawyer look it over. I have done more than a few commercial or regular land deals, including leases but never a cell tower... don't think those improvements will make your taxes rise, if so ask them in writing to pay the overage. Now if your land is in a conservation use you could pay considerably more.


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## Dr. Strangelove (Aug 9, 2013)

From today's Athens Banner Herald:

http://onlineathens.com/local-news/2013-08-09/att-clarke-schools-move-closer-cedar-cell-phone-tower


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## rospaw (Aug 10, 2013)

Just a thought on finding out a rate and how a contract was written: Find a tower or two in your area and find out who owns the property. Might get lucky that someone lives on the proptery with a tower or get a ruff address and either look online or go to the county to find the owner. Take him to lunch and pick his brain on the do's and don't.


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## The Longhunter (Aug 10, 2013)

I know the leases are negotiable to some degree.  


If you lease it, it should not affect your taxes.  Any "improvements" belong to Verizin, you still just own the dirt.


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## egomaniac247 (Aug 11, 2013)

My aunt has one on her property in Virginia.  She was getting $600/mo if I recall properly.  Then she ended up selling them about 4 acres and a right-of-way across her property for a very hefty sum.

One thing to be sure you've considered is how they will access the leased property.


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## merc123 (Aug 12, 2013)

Some decent reads on it. Never hurts to be informed. 
 Through the rumor mills of my various dealings it would seem that $1-$2k per month is more in line than what you were offered. Also, they want something you have. Not the other way around.

http://www.varnumlaw.com/blogs/cell-phone-tower/

http://towerleases.com/factors-determining-cell-phone-tower-lease-rates/


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## Robert28 (Aug 13, 2013)

Thanks for all the information and suggestions! I will keep ya'll up to date about how it turns out. The good thing about the location they've selected is it is right off a main road and very easy access for them so that won't be a problem at all. Not to mention it's on a section of property I do not venture to much or hunt or anything like that. I'll see about negotiating a higher offer.


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## Struttin'-n-Drummin' (Aug 14, 2013)

*Tower removal*

Be sure to clarify who is removing the tower at the end of the lease.  I've always wondered if they vacated the tower at the end of a lease.  I don't know if I ever remember one being removed.  But, I would think you wouldn't want to be stuck with it if they decide to not renew the lease in a few years.  Just my $.02.


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