Mistakes to Avoid When Looking for Dental Office for Lease
Opening up your dental practice is a big task to undertake. Finding the right estate suitable for your requirements is a major part of setting up your office. If you are searching for a dental office for lease, there are various factors to consider before you sign on the dotted line.
Responsibly read and understand the lease agreement to ensure you have a stable dental office space at your disposal. If you fail to do so, the owner might ask you to move out or relocate without any proper justification. Signing a commercial lease will probably be one of the biggest investments you make in your dental practice, and it will determine the amount of control the landlord/owner will have over the premises.
To avoid a scenario where you are left without an office, here are the common mistakes to avoid when looking for a dental office for lease.
Not Taking Advantage of Tenant Improvement
Tenant improvements are basically the physical changes made to the property by you to make it suitable for use according to your requirement. Getting a TI allowance from the owner can significantly help you improve the quality of your dental office.
A recommended tip is to ask for a TI allowance in cash up front. You can utilize the cash to pay off expenses rather than waiting for it to be reimbursed. Also, keep an eye on any TI removal clause as that will hold you liable to restore the property to its original state once you move out.
Not Selecting the Right Size of Dental Office
You need to decide beforehand the number of rooms required for your practice as it will determine the size of your office. If you want a combined reception and waiting area, stick to the plan because these decisions can get emotional, and you might overshoot your budget just for aesthetic purposes.
There is no point in investing in a big office if you will not be utilizing the space available.
Not Taking the Neighborhood into Consideration
Do not go in for office space just because it is cheap. Setting a budget and sticking to it is essential, but that does not mean you compromise on factors such as security and accessibility. Is it a safe neighborhood to open an office? How easy will it be to reach your office? Is public transportation available nearby? Answer these questions to meet your requirements.
Not Engaging Help from Experts
Apart from tenant improvements, there are various other clauses you need to thoroughly understand and negotiate on when signing a lease. Some of these include:
Compliance with ADA
Relocation and recapture clauses
Death and disability clause
The average net incomefor generalist dentists in the private sector, in 2019, in the US was $204,710. You would end up spending 6% to 9% of this income on rent. It is recommended you engage the services of professionals experienced in the field of dental office real estate.
As seen above, the process of searching for a dental office for lease has many moving parts. Avoid the mistakes mentioned. Experts can help you navigate through the lease clauses with the landlord and negotiate the best outcome for your practice.