Are you considering a cell tower lease buyout? Not sure whether or not this is the right decision? Well, you’re not alone. And don’t worry—we’ve got your back! As one of the best cell tower lease buyout companies, we can guide you so you make a decision that’s in your best interests. Below are three things you should consider before selling your cell tower lease:
#1: Do You Require An Immediate Lump Sum Payout?
When you sell the lease, you’ll receive cash, either in installments or as a lump sum. So how is payment size determined? Well, let’s assume you earn $1,000 monthly as rent. Assume that the rent increases by a nominal 3% year on year. This means your lease has the potential to fetch around $437,500 over 25 years.
However, if you were to cash out today, you’d receive the minimum buyout price (around $120,000). As you can see, a cell site lease buyout fetches a significantly lower amount of money when compared to what a long-term lease can yield.
At the end of the day, you need to ask yourself: Do you want an immediate lump sum of cash or do you want a small monthly rent that you could get consistently for years. And of course the way you answer this question will largely depend on your financial circumstances. If, for example, you require a lump sum to cover a significant expense that’s coming up, it’s better to opt for the buyout.
Even when you don’t need immediate cash, there are other reasons which justify accepting a cell tower lease buyout, including:
#2: The Tenant Has The Right To Terminate The Lease With Just 30 Days Notice
There is no guarantee that the wireless company will continue paying you rent for years down the line. While this is unlikely to happen any time soon, there’s the possibility that cell tower leases might go out of fashion sooner than you think. There have been examples in the past where companies, like Nextel, decommissioned their entire networks suddenly. So, you cannot predict what will happen to your lease five or ten years from now.
Consider the age-old saying: A bird in the hand is worth two in the bush. The buyout payout is your bird in hand. Do you want to cash it in or take the risk of going after the birds in the bush (long-term rent)?
#3: You May Not Receive The Full Potential Of The Lease
Can you guarantee that you will continue living in your current home over the next ten or twenty years? What if you want to live elsewhere? You might want to be closer to family or in a cozy retirement community eventually.
The US Census Bureau states that only 37% of Americans live in the same house for more than ten years. If you see a possible change of location in your near or distant future, the best option is to go with a cell site lease buyout, as this way you get something instead of nothing.
Require More Cell Tower Lease Buyout Information?
Reach out to Tower Genius. We’ve helped hundreds of clients close cell tower leases with huge payouts. Contact our cell tower lease experts to discuss your payout options.