Your lease is up for renewal and your tenant contacts you about a rate increase. Is the offer fair or not?
Sometimes referred to as a minimum annual guarantee (MAG), a base rate is the rental income paid out to the landowner regardless of how the sign performs. In most cases, this amount is paid monthly.
Here are some of the pros and cons of a base rate:
This is a percentage of the annual revenue generated from the sign. In most cases, it is paid annually or quarterly.
Here are some of the pros and cons of a revenue share:
SignValue suggests that all landowners include both a revenue share and a base rate in their leases. Striking a balance between the two is an art. SignValue uses real data to evaluate and negotiate the proper balance. For any questions you may have about your billboard lease, reach out to us at any time.
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