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Outdoor advertising sold as solution to landlords' squeezed margins

outdoor billboard

Landlords are being encouraged to consider hosting a billboard on their property as a way of creating a regular income stream.

Outdoor infrastructure firm Wildstone installs digital billboards on properties and pays a rental fee in return – typically £4,000-£6,000 a year for residential properties, according to head of development Mike Duty, who explains that the firm is effectively a second tenant. “The property owner still has their residential tenants inside, but Wildstone leases the exterior brickwork or a small piece of their land,” he says. “That income is predictable, usually for 16 to 20 years, which can make a critical difference to landlords struggling with yields.”

Reinvest

Landlords often use the income to pay off mortgages, cover maintenance or reinvest in other properties, while for some, it has been the difference between holding onto an asset or selling it, says Duty, who reports a threefold rise in enquiries from residential landlords during the past three years, driven in part by mounting concerns about the Renters’ Rights Bill.

“We’ve even had cases where the addition of digital billboard income has been a key factor in a mortgage being agreed as lenders recognise it as guaranteed income.”

Minimum

Agreements usually run for a minimum of eight years, with longer-term commitments preferred. Wildstone manages the entire process, beginning with free site valuations, through to arranging planning consent, construction and ongoing maintenance of the screens.

Duty adds that it assesses all inquiries, but that not every site is viable. “Of the hundreds of enquiries we receive each month, around 5-10% are deemed suitable for development, depending on factors such as traffic volume, visibility, obstructions, planning regulations and other planned developments.

“The process from enquiry to installation takes about six months if planning goes smoothly,” he says. “It’s not an overnight fix, but once a screen is up, the landlord has a guaranteed income stream with no additional costs.”

Tags:

Mortgage rates
renters rights bill
landlords

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