It’s no secret that running and maintaining a profitable condo property complex can be a challenging task because of the maintenance and upkeep expenses. On the positive side, condominiums with a cell site on the roof have the opportunity to leverage the profits from a cell site lease buyout and use the funds wisely.
Condo complexes require landscaping, security systems, regular repairs, and utilities, such as garbage collection, shared electricity, and gas. To understand further the list of costs, condo establishments must also allocate funds for concierge and staff salaries, and back-office operational costs, which include legal fees. The challenge is that all of these recurring overhead costs are shouldered by condominium residents.
Below we’ll cover three key benefits of a cell site lease buyout for condominiums and how selling the condo’s cell site lease can help offset condominium outflows.
1. Keep monthly residential fees low with an additional stream of liquidity.
One of the greatest benefits of selling the condominium’s cell site lease is the liquidity associated with the transaction. Whereas investing in a community park or installing a pool requires cash, selling a cell site lease provides funds. These funds can be used to pay for regular expenses or even start a savings fund.
Investopedia reminds, “Condo buyers should consider the condo fees before buying a condo and any special assessments that might arise that would require additional funding.” It’s important to also plan for property costs and emergencies, such as flooding repairs. One key way to entice new potential homeowners – and keep the current residents happy – is for condominium managers to keep residential fees low, which is no easy task.
With a cell site lease buyout, condo managers have the ability to tap into the revenue or savings associated with selling a cell site lease and cover recurring or emergency costs. This way residents don’t have to bear hefty bills.
2. Reinvest in the property and potentially increase its value.
Another benefit associated with selling a cell site lease is using the lump sum to reinvest in the property complex. Finding investment capital can be daunting, and the cell site lease payment is an opportunity for condo managers to fund projects related to the property.
This is how selling a cell site lease works: Cell site lease owners generally receive a monthly payment that accounts for a small dividend. This small sum can cover minor, and perhaps even insignificant, costs. Selling the cell site lease, however, allows condo managers to have access to a larger upfront amount of money, which can be used for significant projects.
These plans include installing elevators, solar panels, and new camera surveillance, rebuilding aging and potentially dangerous buildings, purchasing better insurance, and increasing maintenance personnel.
By reinvesting in the property with a more sizable sum acquired from the cell site lease buyout, the condo property complex can remain enticing for new interested buyers and also for the current residents, with updated and well-maintained areas.
Reinvesting in the property is likely to keep the space safe, as well, and potentially even increase the value of the property.
3. Secure the revenue gained from the property’s assets.
Having a cell tower on the condo property does not guarantee earning rent for the entire duration of the lease. Many cell site lease contracts state that the lease can be terminated within a certain time, which can be a month, six months, or with no notice at all.
The upside is that selling the cell site lease to APWireless guarantees payment, even if the cell site lease contract ends with the tower operator.
APWireless has a vast and global portfolio of cell tower and rooftop leases. That’s why a single lease termination is not as impactful for the company as it would be for the owners of a condo property complex. In other words, APWireless is able to assume the risk. And so, even if a lease is terminated by the owner of the tower, the property owner will keep the upfront lump sum they were paid.
Interested in learning more about the potential of selling your cell site lease? Contact APWireless’ knowledgeable Acquisitions Directors at www.apwip.com or call 888-232-2740.