Jan 24, 2020
June 17, 2019 - Arminco Inc.
Making the decision to lease or buy a space can be one of the toughest decisions for dentists hoping to open their own practice. Unless a dentist personally owns a property, they will have to sign a lease to be able to work in their desired office. Don’t be a fool by simply believing the landlord when he says the lease is “standard” or “boilerplate” or “not open for discussion.''
In order to turn things to your advantage, find a good lease negotiator or a tenant representative with experience on working with dentists and local ties. However, be careful because tenant representative fees are typically covered by the landlord upon signing the lease. If you are skeptic, take extra care to find a recommended and trusted representative in order to not second-guess their motive. A lawyer will probably not be familiar with the information required to work out a good deal for dentists.
If a significant build-out is being considered, contact a contractor who can help determine if the space can be used as a dental office without any obstacles, such as structural or plumbing issues. Most contractors offer free building studies in order to help you choose your best location.
Lastly, once the business terms are finalized, a lawyer with appropriate leasing and dental industry experience will prove to be indispensable.
Before signing the lease, the landlord and the dentist will devise a nonbinding term sheet or a proposal letter to ensure they are on the same page. While this sheet is nonbinding, a landlord will usually not agree to subsequent concessions not present in the letter.
Usually, the dentist will not be able to work out a new lease and will have to assume an existing lease, but if he intends to stay in the place longer than the seller, he may be able to work out friendlier terms.
Make sure to pay attention to these facts:
Negotiating a lease may be a daunting task but with the right knowledge, may be managed in a way to help rather than restrict dentists. Contact us if you have any questions regarding the leasing, designing, and building of your dental office or if you would like to request a building study.
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