Billboard Owners

Billboard Negotiations

Have you been contacted by a billboard company to install a new board or to negotiate a lease amendment? These are 5 things property owners should carefully consider when negotiating an agreement.

• Lease Term and Renewal Options

  Lease Duration: Understand the length of the lease and the flexibility to renew. Long-term leases provide stability but ensure there’s an option for periodic review and renegotiation.

  Renewal Terms: Include clear renewal terms and conditions to avoid being locked into unfavorable conditions in the future.

• Rental Rate and Payment Structure

  Compensation: Negotiate a fair rental rate based on market value and the potential revenue the billboard will generate.

  Payment Frequency: Decide on the payment schedule (monthly, quarterly, annually) and ensure it aligns with your financial planning.

  Escalation Clauses: Consider including clauses that adjust rent based on inflation or market changes to ensure your compensation remains fair over time.

• Maintenance and Liability

  Maintenance Responsibilities: Clearly outline who is responsible for the maintenance and repair of the billboard structure to avoid unexpected costs.

  Liability Coverage: Ensure the billboard company provides adequate liability insurance to cover any damages or accidents related to the billboard.

• Use Restrictions and Content Control

  Content Approval: Retain some control over the content displayed on the billboard to ensure it aligns with your values and does not negatively impact your property or its surroundings.

  Usage Limitations: Specify any restrictions on the type of advertisements (e.g., no adult content, political ads) to protect your property’s image.

• Termination and Exit Clauses

  Early Termination: Include provisions that allow for early termination of the lease under certain conditions, such as a sale of the property or non-compliance by the billboard company.

  Exit Strategy: Define the process for removing the billboard and restoring the property to its original condition at the end of the lease.

By focusing on these key considerations, property owners can negotiate a billboard lease that maximizes their benefits while protecting their interests. Better yet, have an expert in the industry work on your behalf to obtain the best terms and conditions.

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