Relocating a Dental Practice: Essential Steps for Success
There are three major parts involved in the process of getting your new lease secured, and your dental practice efficiently moved to a new location.
Part 1: Negotiating the Offer to Lease, or Letter of Intent
This document is the short form of your lease that mainly addresses economic terms such as rental rates, lease start date, length of the term, what your options are to renew, tenant improvement allowances, financial deposits, etc.
This agreement is a very important part of the dental practice relocation process, requiring extensive research to help negotiate fair terms. Remember, landlords and most realtors aim to get dentists to agree to pay the highest rent possible. Research and a strong negotiation strategy here are critical as this will determine how much money you will spend over next 10-20 years. Making a mistake with this part of the process will be very expensive for you.
Part 2: Reviewing and Negotiating Your Dental Office Lease
The second step in moving a dental office is reviewing and effectively negotiating the dental office lease agreement. The lease is usually a much longer document than the letter of intent or offer to lease, and is always written and presented in a very ‘landlord‐favored’ way. This is the landlord’s tool that they use to make as much money as they can for as long as they can via hidden terms and clauses. The more you pay for rent and the longer the term, the more valuable the dental office property becomes.
It’s critical to be careful here, and have a dental leasing expert get involved to ensure your practice is safe and protected in the long run.
Part 3: Ensuring You Have Enough Term in Your Old Location
The third component to relocating a dental office is ensuring you have enough term and mechanisms in your current location before the move. You want to avoid losing your old location if your new location is not ready for you to start seeing patients. “Downtime” or “dark-time”, as it is commonly known as in dental circles, is one of the worst things that can happen to you and your dental practice. Ensuring you have enough term left in your old location or that you have a short term extension is critical to your practice’s continuity while you go through this process.