A properly structured lease between your dental practice and your building is critical to maximizing the value of your practice, and increasing your flexibility as a building owner.
Without a properly crafted lease, how will you determine how much rent to pay each month? Who will pay for costly building repairs when they arise; the building corporation or the practice? How will you refinance the property at mortgage renewal time?
When the time comes to sell your dental practice, you want the prospective buyer to feel confident that the practice they’re acquiring has a healthy long term dental lease already in place that provides flexibility to run the practice, options to extend, and fair and equitable terms that allow them to grow. How will you eventually sell the practice without presenting the buyer with a fair lease to the space?
Why Does A Lease Matter If I Own The Building?
The dental office lease agreement is a valuable tool that will help protect and define your practice and building investment. When you own the building, you still need a lease in place because your practice remains the same, and the appraised value is still determined by the equipment, goodwill (patients), and the dental lease agreement.
Questions to Consider When You Buy the Property of Your Dental Office
1) How much rent will you pay yourself and the building each month?
2) When there are repairs needed, who is responsible for these?
3) How do you separate the relationship and obligations between the landlord and tenant,
when you are both?
4) Is your dental lease set up for growth and the flexibility to sell in the long run, with “options to renew” when you’re ready?
Cirrus Can Create A Lease Agreement For You
Secure the future of both of your assets with an Arm’s Length Lease between Company A (the building) and Company B (the practice), written and created by the experts at Cirrus Consulting Group. We prepare the entire lease agreement for you from start to finish, ensuring your lease provides ample security to protect the future of your assets, maximizes your practice value, while adding flexibility and lots of term and options.
If you’re considering buying a property for your dental office and want to know more about how the lease agreement can be a valuable tool for you and your investment, Cirrus can help! Founded in 1994 by dentists, Cirrus’ dental office lease negotiation experts have successfully negotiated over 10,000 dental office leases and reviewed more than 20,000. Trust the dental leasing experts for your Arm’s Length Lease!