Cancelling a Billboard Lease


#1

My family owns a piece of property in Tennessee with a three face sign. The lease is currently up for renewal, and I am interested in trying to buy the sign and take over the permit. I assume the likelyhood of being able to buy the structure and permit at a reasonable price is relatively low. I was told that if the lease is terminated, the company that owns the sign would likely continue to renew the permit until they secured another permit “close by”. Is this possible and legal? Assuming the sign grosses $12,000 to $15,000 per year, what would be a reasonable price to pay?

Thank you.


#2

Cliff,

Do not cancel the lease until you know a lot more detail. For example, do you have to be licensed in Tennessee to operate a sign? (you’d have to get that done before you could buy anything). What is the sign’s true economics? What is the future use of the property?

Yes, the sign company can obtain a lease next door to you, if it can get the permit, and “jump” your lease. It’s not hard to do. All the sign company has to do is file a “demolition” permit and a “new sign application” at the same time. There is really no way you can stop them from doing that.

Before you do anything, you need to see if there is a win/win solution to get you the highest fair ground rent. I urge you to sign up for our Groundrent Review service on the site. It only costs $195, and that way you can get a professional grade opinion on what’s fair on rent and what’s not, as well as what your options are. There is way too much money at stake not to put more focus on it before you act.

You can call (800) 950-1364 or click on the “landowner” icon on the right hand side of the page on the site. You will work directly with me.