I have a billboard that someone else owns on my new property. Their lease was up 12/31/16 and I met with him today. My property is on I95 and the billboard is in a pretty prime location. Trying to figure out new lease terms. He wants another 25 year lease. I'm fine with that and willing to be more than fair. Market rents from Lamar are from $2500 to 3850 a month in our area. Probably more toward the 3850 side for a prime spot like this on a major interstate. Going lease rates are around 20% of rental income. That would be somewhere around 9,000 a year. He wants to pay me a lump sum of less than 9,000 for the entire 25 year lease. Any input? Suggestions?
No announcement yet.
Anyone have a billboard on site?
Reply to SST Member Q&ASST username: Gina6k
Location: Silicon Valley area of California
Length of time in the industry: Eek! Umm, 25+ years now.
How did you get into the self-storage business or become involved with the industry?
Part time weekend...Today, 02:09 AM
Reply to On what grounds can we discriminate?I agree with Ron, tell him to check out your favorite colored door people down the street. If you have your rules for rental posted and he doesn't meet those then he can't rent a unit from you, simple. Interesting thought for you; as the owner/operator do you have more latitude than the average facility...Today, 01:46 AM
I would error on the side of being generous with rent refunds in such a situation. It's not worth the hassle and mad people talk. A lot. It seems to me the goal is for them to be gone and teh unit to be rented to someone else. Recouping some rent for time they weren't there is not the core issue.Yesterday, 11:07 PM