Once Upon a Dime

The Reasons Behind Lump Sum Payments on your Tower Lease

One way to make use of your land to make money is to have your property be leased by cell site towers. The lease is usually negotiated on a per month basis; however, along the way, you could be offered by the company a tower lease lump sum payment for a certain reason. In this case, landowners should be careful in determining which agreement would be more beneficial.

One of the reasons why landowners are offered a lump sum is the consolidation of two companies. If this happens, some of the tower leases should be sacrificed. This thing is inevitable and offering a lump sum is their way of avoiding termination of your lease.

Another reason may be an expected increase of leases in the next few months. By receiving a lump sum payment today, you would receive a payment that is based on the present rate leading to less expense and more profit for the company.

When landowners are offered a lump sum, consulting an industry expert would be a wise move. In this way, you will be guided in determining whether the lump sum is acceptable considering the taxes you pay and the market value of your land.