I owe a two story building in northern new jersey, there is a store front on the first floor, it is in a very high traffic area with great visibility, lots of car, foot,and bus traffic.
Currently i have leased out the roof to an outdoor advertisment company, the contract states that they will be fully responsibile for our roof, to replace the roof as needed , fix leaks that may occur etc, etc, etc. in addition once a year we recieve a check for $300.00 .
this contract was set up about 20 yrs ago, and 20 yrs ago we recieved $200.00 a yr and it slowly was increased and now it is $300.00 a yr.
it is time to renegotiate. i believe that $300.00 a yr is not enough money. I would like to raise the cost of the lease but i dont know what is reasonable and what is not, can someone please help me !
Considering they would only have to do work on the roof every 20 years or so they aren’t putting up much money there. Depending where the building is they are probably renting the billboard space out to clients at $500-2000 a month and you are getting a tiny cut of that. You should call up the company, tell them you are interesting in putting your ad on that specific billboard and see what they quote you. Use that to gauge how much to charge them.
I definitely agree with Rich. $300 a year, especially if it is a high traffic area is absolutely dirt cheap (I am sure they were loving every year of that contract). I’m not sure how familiar you are with them on a personal level, but if that is the case, you might want to get a friend or someone to call them and get a quote on how much they are renting the space for. Either way, $300 a year for a prime place in a high traffic area is a steal.
thanks for the advice! i didnt think to call them and ask how much it would be to advertise, i will get on that right away and as soon as i find out i will post the quote they give me ! and maybe i can get some more guidance, thanks again for now!
What are you talking about? This is not a discussion of internet vs billboard. He has a billboard and wants to make sure he is getting the right price for renting it.
Depending on the size of the sign and location, they lease the signs out for $500 to $2000+ a month. I would charge them between $100 to $200 a month. Do you really care to make $300/year? other than having them replace your roof, which is $4k every 15 to 20 years.