Friday, 20 July 2018
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This Old House - Do-it-Yourself

What to Know Before Signing Your Office Lease

Written by Posted On Thursday, 12 July 2018 16:36

If you're considering starting a dentistry practice, the first thing you need to do is select an excellent location to set up your dental office. Next, you need to negotiate leasing terms with the landlord. However, before signing that lease there a few items you need to take care of beforehand.

 

Do Your Research

 

Landlords have been known to quote higher leasing rates for dental practices. As such, it helps to start by researching the rental rates available in your area for similar properties in your square footage range. You need to make sure that you are going to pay the fair market rate for the office. Here are a few items you may want to have in place.

 

  • clear understanding of what you are paying
  • complete commercial leasing rates by zip code and square footage
  • a pre-determined idea of the maximum you're willing to pay

 

Another thing you want to do when it comes to research is start the process early enough to make adjustments if you run into issues. If the cost per square footage is high, you should research other areas and maybe do a short survey of other similar businesses in the area to see what they're seeing.

 

Also, it doesn't hurt to learn what amenities your dental office can expect to receive at the rates the landlord is asking you to pay. For example, some spaces come with multiple waiting areas – one for adults and one for children. Little things like this mean a lot to the families who visit your office for their dental appointments.

 

Avoiding Mistakes

 

When you are looking for space to open your family dentistry, a few items you must be on the lookout for upfront. Otherwise, you could make costly mistakes. For example, be sure to consult with the landlord first on whether you have the fixed right to renew the lease terms.

 

Without the right to renew clause, the landlord has every right to hike your lease at renewal. You'd be surprised just how many successful dentists have to pack their bags just because they forgot about this minor detail. So be sure to include this in your dental office lease checklist.

 

Another no-no to look out for when shopping for your new dental office are personal guarantees. It doesn't matter how much of a fuss the landlord makes about it -- don't sign it. They can get rid of it if they want, but it won't happen unless you raise the issue. What's so bad about signing a personal guarantee? Just ask the dentist who had to go into his or her kid's college fund to pay rental arrears after the practice went belly up.

 

Other Considerations

 

If you are dealing with property leases for the first time ask your commercial realtor or attorney for help. Chances are high that they know how to sidestep the pitfalls that you might otherwise fall into. An experienced person can help you a lot. It is much better to consult with them on every step instead of doing everything alone.

 

Lease terms can have a significant impact on your dental practice's finances. Regardless of whether you choose a long or short-term lease, there are poor and wise decisions. However, if you keep what we've just discussed in mind - you shouldn't have a problem steering clear of major problems.

Listing Additional Info

  • State: New York
  • Address: 2148 Ocean Ave, Ste 401
  • City: Brooklyn
  • Zipcode: 11229
  • SOLD: no
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