Today out of home leasing and development expert Andy Goodman of Age Advertising talks about when and how to approach a landlord to discuss rent.
A mistake new billboard operators make is introducing rent too early in conversations with property owners. In practice, discussing money before establishing value and trust can shut down a deal before it ever has a chance to develop. When I meet a property owner on-site, the initial conversation is never about rent. It’s about why their property is attractive and how a billboard—specifically a digital billboard—creates value for them with minimal disruption.
The focus stays squarely on the owner’s upside:
- Passive income with little day-to-day involvement
- Minimal use of property space
- Digital advertising eliminates vinyl changes, lighting maintenance, time clocks, and frequent site visits
- No regular crane access required—often not until periodic power washing
- Operator-provided electrical, insurance, and liability coverage
By clearly explaining how digital billboards reduce operational headaches compared to traditional static boards, property owners begin to understand that this is a low-impact, professionally managed asset—not a nuisance.
Establish expertise and trust
From there, the conversation naturally moves into lease fundamentals the length, access requirements, liability insurance, permitting and governmental approval. The emphasis is that the landlowner gets economic value with limited impact on the property.
This is where trust is built. When a property owner sees that you understand every part of the process—from construction and permitting to long-term operation—they stop viewing you as a salesperson and start viewing you as a partner.
Their reactions matter. Body language, questions, and engagement signal whether the interest is real or exploratory. Only once that interest is clear does it make sense to talk numbers.
When rent enters the conversation
Rent should be introduced after value, trust, and deal structure are established. At that point, I present a number that is intentionally low our reasonable. Why? Because no experienced property owner accepts a first offer. They’re going to call competitors, consult brokers, or benchmark against other deals in the market. The first number must leave room for negotiation, reflect market realities and account for costs associated with city participation or development agreements. This is especially critical in municipalities where cities take a percentage of billboard revenue. If an operator offers a property owner 20% of revenue and later discovers the city requires another 30–40%, the economics collapse quickly. Knowing the market—and what cities have negotiated in similar agreements—is essential before any rent discussion happens.
Let the owner counter
After the meeting, I follow up with a formal letter and a draft lease outlining:
- Key deal terms
- Access and operational language
- Insurance requirements
- The financial offer
At that stage, I frame the next step simply: “If we can address all of your redlines and reach agreement on the lease terms, is the money acceptable?” This question shifts the dynamic. It invites the property owner to counter—because they will. Their number is typically high, knowing it will come down. From there, real negotiation begins. If the counter is reasonable, there’s almost always a path to meet in the middle. Even when it’s not, the conversation is now grounded in mutual understanding rather than posturing.
The Takeaway
Rent is not the opener—it’s the closer. The most successful billboard deals are built by selling benefits first, demonstrating deep operational knowledge, understanding market and municipal constraints and introducing money only when momentum exists. Do that well, and rent becomes a negotiation—not a deal breaker.
You can reach Andy Goodman at andygoodman.age@gmail.com or 310–721–8422.
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