As a land owner, you constantly look for ways to get the most bang for your buck. You’ve invested a lot of money in your property and are looking for ways to make a return on your investment. There are many ways you can generate income from your property, but you might just need a little guidance on how to make that happen. Have you thought about putting a billboard on your property?

One way to make money from your land is through lease agreements such as from outdoor advertising signs, and this ultimate cheat sheet will give you the information you need to start generating extra income!

The Billboard Lease Agreement Cheat Sheet – Overview of the Advertising Industry

According to an Ibis World Report, the sale of ad space on billboards accounts for an estimated 65.3% of industry revenue. Advertising agencies such as Lamar or Clear Channel pay landowners to lease them space for advertising structures. These agencies then lease out the billboard space to companies for marketing campaigns. These leases can last years, providing landowners with reoccurring income for the duration of the agreement. The Outdoor Advertising Association of America recently shared a market report that revealed that the outdoor advertising industry grew at 1.2 times the growth rate for the US Gross Domestic Product during the past quarter. If there ever was a time to determine whether your land was viable for an outdoor advertising agreement, it’s now!

The Billboard Lease Agreement Cheat Sheet – Evaluate the Marketability of Your Property

I’m sure you’ve heard the term, “prime real estate” before. Of course, this term is relative. To someone looking for a new home, the backyard of a secluded 18.9 million dollar Beverly Hills mansion might be perfect but hardly screams prime real estate to an advertising agency. Though a poolside swim in LA sounds nice, a mobile home park owner with property on the side of a major highway wins this competition.

Your first step to putting a billboard on your property is determining how marketable your location is. Outdoor advertising companies look for certain qualities including, the location, the visibility, and whether or not they would be able to erect a billboard with multiple viewpoints. The most valuable properties to an advertising agency are those in urban areas along major interstates and freeways with heavy daily traffic. Since the company buying the advertising space wants to see a return on their investment, billboard rates are contingent on the number of people who will see the billboard in a given day. The more people who would pass the billboard, the more money a company will pay to advertise there. If your location sees a lot of traffic, you might have negotiation power that gives you the ability to set a higher lease rate.

The Billboard Lease Agreement Cheat Sheet – Check with Your Neighbors

The second step in your journey to generating billboard rental income is to have a block party! We’re kidding of course, but the first step is to meet with any local business owners or residents surrounding the property where you want to put up the billboard. This is an important first step because when you approach your zoning and ordinance office, you can show them that there are, at the least, no local objections to the erection of the outdoor advertising sign.

The Billboard Lease Agreement Cheat Sheet – Meet with Your Local Ordinance and Zoning Offices

The next step is to request the literature on your town’s sign ordinance.

When reading through the local sign ordinance, you’ll be able to determine your property’s viability. Some regulations vary from state to state, and some are nationally-imposed. For example, there is a national regulation in places that prevents landowners from erecting new billboards near certain landmarks or historic buildings.

Once you’ve determined that you can proceed with a billboard proposal, make an appointment with your local zoning office. Have a sketch drafted of your proposed sign and include the dimensions. Your local zoning office might suggest certain modifications or they might approve your billboard immediately.

The Billboard Lease Agreement Cheat Sheet – Connect with Outdoor Advertising Companies

The process of finding an outdoor advertising company used to be annoying. As the land owner, you used to have to do the research, find those companies, and promote yourself to the real estate divisions via email or phone. You had to make countless calls and send dozens of emails until you found an outdoor advertising company that was willing to come out to verify if you had a desirable location for a billboard. With lots of inquiries pouring in on a given day, landowners had to be able to prove the marketability of their property and sell themselves to out of home advertising companies.

As the world’s largest land marketplace, our online platform allows you to list your land for free according to what type of lease agreement you have in mind. There are several options available to a landowner. In this case, you would list your land as available for an outdoor advertising lease by selecting that particular attribute. The outdoor advertising companies use landlease.com to search across America for those land owners that are willing to consider an outdoor advertising lease on their property. Because locations matter to the ones that need to secure such leases, its critical to have your land listed here. The searchers come to you!

The Billboard Lease Agreement Cheat Sheet – Negotiate the Outdoor Advertising Lease Agreement

Lease agreements for billboards typically have long terms because it takes a while for the outdoor advertising companies to make a profit on the investment. With that said, it’s highly important that the terms of your lease are scrutinized. At Landlease.com once your land is listed, you are automatically represented by an “insider” who has years of expertise in the outdoor advertising industry. They work directly for the land owner by marketing your land for you directly to the agencies that are looking for a property like yours. If an offer is made, they will present it, but rest assured they are looking out for your interest and will ensure that the offer you are getting is of good value.

Conclusion

Each industry, like the outdoor advertising industry, for example, has trained professionals looking out for their companies’ interests. They have years of experience and negotiation training to get the best deals for their companies. As a land owner, you need someone in your corner as well who knows the industry and who is specifically interested in your land.

We work directly for the land owners interest, we do NOT accept any compensation from the companies that want the leases, we only work on your behalf to assure you are getting a fair and equitable deal.