Is it possible to renegotiate an inherited billboard contract?

[Peyton Zachrich]

A self-storage facility I bought a few months back has a large billboard with a market rate of about $400-500/month, but the prior owner signed a contract that provided an easement to Lynd for a period of 10 years, starting in 2013, for only $130/month. 

I would like to renegotiate this with Lynd to something more reasonable, but I'm not sure if I have any leverage or means of getting out of a bad contract as a new owner. It was an asset sale so the contract would not implicate me, but the easement on the property itself doesn't seem like something I can take back. Let me know if anyone has experience negotiating inherited billboard agreements like this.

[Cason Acor]

I've brokered deals with existing billboards and am familiar with their contracts. If what you're saying is accurate, and the easement is only granted for ten years, then that's very favorable to you. The last deal I did involving a billboard, the advertising company took some poor old lady to the cleaners 20+ years ago and got her to grant them a perpetual easement for literal pennies. And becuase the easement is perpetual, there's nothing any subsequent property owners can do to change that contract. So in your case, assuming the easement is revoked after the 10 years, I would treat it like any normal tenant lease and renegotiate it when the term expires because there's only one year left. But be absolutely certain of the terms of your current contract with them. Billboard leases tend to heavily favor the advertising company and leave little recourse for property owners. So make sure there aren't any clauses or extention options that might make your life more difficult. If you are able to renegotiate the contract, do everything you can to avoid giving them access through an easement. Treat it more like a ground lease.