Billboards on your property. What do you get paid?

[sparkey]

I was looking at a purchasing a property that has a large double sided billboard sign by lind located on the property. These are the same billboards you see along the highway. The guy said he was being paid $500 a year which I thought seemed low. Does anyone else have any experience with this?

 

[Car_Wash_Guy]

It depends on the exposure. One of my fathers properties has a billboard from Clear Channel. They pay him $4200/mo. It costs $6,000/mo per side to advertise. This is in South Florida on a road with 45.5K cpd

 

[soapy]

I get 3000 per year for one and $3500 per year for another site.

 

[Allen]

I get $2000 a year for a site with about a 15K traffic count with a 10% increase every 5th year. Used to get $2500 yearly for a site with a 19K
traffic count before selling location. Both static signs in rural areas. Digital signs pay better.

 

[Earl Weiss]

The guy said he was being paid $500 a year which I thought seemed low

Answers to your question may have little import since if the lease is in place you are stuck with it until the end. Also Billboard rental rates may be tied to traffic location meaning one next to a highway is more expensive / pays higher rent than than one on an arterial street. Once told a guy who wanted to put one on my property 10% of what they charged for advertising. I thought his head would explode.

 

[sparkey]

Answers to your question may have little import since if the lease is in place you are stuck with it until the end. Also Billboard rental rates may be tied to traffic location meaning one next to a highway is more expensive / pays higher rent than than one on an arterial street. Once told a guy who wanted to put one on my property 10% of what they charged for advertising. I thought his head would explode.

Wouldn't his contract be null and void if he didn't own the property anymore?

 

[Earl Weiss]

Wouldn't his contract be null and void if he didn't own the property anymore?

Billboard contracts I have seen are structured as leases. When a property is purchased (unless the lease has a cancelation clause) the purchaser takes subject to existing leases.