Utilize 5G Leasing to Increase Passive Income

[Julio Gonzalez]

As real estate property owners, we all know that we can rent out units and homes, but have you considered leasing out your rooftop? I’m sure most of you are familiar with 5G connectivity. 5G will not only be faster, but it will also serve as the backbone for driverless cars, safer surgical medical procedures, safe drone operation, less traffic jams on the streets and increased precision in manufacturing.

Here are 5 important things to know about 5G rooftop leasing.

What’s the difference between 5G technology and previous technology?

5G is 150-200x faster than 4G and eliminates connectivity issues during large events. The signal transmits a much shorter distance due to higher frequency and shorter wavelengths than previous technology. The signal can be much more easily blocked by large buildings and disrupted by severe weather.

Is my property eligible for 5G leasing?

When most property owners think about rooftop leases, they think only commercial properties are able to enter into such agreements. However, 5G rooftop leases are also available for multi-family and single family residences depending on your property and it’s location. Your property is entered into a database to determine if it’s eligible.

What infrastructure does 5G utilize?

4G technology will be utilized until around 2030, so the 5G technology is being built alongside 4G. However, for 5G technology, the cell phone carriers must put transmitters on rooftops every few blocks rather than one large cell tower that is used for 1G-4G.

How much income can I expect from a 5G rooftop lease?

Based on our client’s contracts, an average rooftop can see cash flows averaging $3,000/month per carrier, however we have seen as high as $20,000 depending on your property and it’s location. The term of the lease is anywhere from 5 years to 30 years. Additionally, if your contract with the telecom carrier is negotiated in the most advantageous way, you can lease with multiple telecom carriers on the same rooftop, therefore doubling or tripling your revenue stream.

What factors should I consider when selecting a contract with a telecom company?

Find out whether your property is located in a 5G eligible area. The best opportunities are for properties in densely populated areas where cell towers are not permitted. Ensure your lease includes details on the type of equipment that will be installed as well as the square footage needed for this equipment. If they plan to increase the amount of equipment over the term of the lease (i.e. increasing the amount of square footage required), ensure the price of rent increases accordingly. As mentioned above, ensure your contract allows you to lease with multiple carriers.