Deciding whether to rent a building or purchase your own real estate for your dental clinic can have significant legal implications for you and your practice. It’s essential to consider various factors, including your control over the space, financial and legal liability, build-out viability, long-term stability, and contract terms.
An experienced lawyer can assist you in making the right choice for your dental clinic’s future.
Control and Flexibility In Using the Space
One of the major differences between leasing and purchasing a space for your dental clinic is the amount of control and flexibility you have in using the space. When buying real estate, you have complete control over the renovations you want to make. Leased spaces often require landlord approval for changes to the property, and you may have to pay to undo those changes when you leave the space.
However, a lease also provides you with the flexibility to relocate to a space that better suits your practice as it grows. When you purchase real estate, you are typically committing to being constrained by the space for the long term.
Financial and Legal Liability
Depending on the terms of your lease, you may have limited financial responsibility for the maintenance the building requires. If the building becomes damaged or requires renovations, your landlord may be responsible for the costs.
On the other hand, if you own the building, you are financially responsible for its upkeep and have a higher degree of legal liability for accidents that occur on the property. However, you may also benefit in other ways, such as building equity in the property.
Building Out the Space for Dental Use
Dental clinics often require significant build-outs, including the installation of additional plumbing for teeth cleaning devices. When you own the property your clinic operates out of, you can make build-out decisions without requiring approval from a landlord or worrying about losing the money you invested into the space when you leave.
While build-outs can be more challenging to obtain approval for when leasing, you may also be able to negotiate with the landlord for better rent rates based on the improvements to the building that you pay for. This is something you will want to work out with your landlord before signing any lease.
Long-Term Clinic Stability
One of the most significant benefits of owning your own real estate is the long-term stability it provides. When you own the property, you’ll never have to worry about your landlord raising your rent, evicting you, or selling the property to a new landlord who wants to use it for another purpose.
Losing your clinic’s space and having to relocate can impact patient retention and your bottom line.
Owning the real estate where your clinic is can also significantly increase your business’s value. If you plan to sell your clinic at some point in the future, investing in its real estate can pay off in the long term.
Assistance with Lease and Purchase Contracts
Whether you’re planning to lease or purchase real estate for your dental clinic, an experienced lawyer can assist you by reviewing the contract and making sure the terms are in your favor. For example, they can negotiate with landlords regarding clauses in your lease contract or make sure all issues with the property are disclosed before closing a purchase.
Contact Our Dental Clinic Real Estate Lawyer
If you’re opening a new dental clinic or planning to move to a new location, contact Mahan Law – Dental Attorney for a free consultation with an experienced dental clinic real estate lawyer. We’ll help you explore your options, including determining whether leasing a space or purchasing real estate makes the most sense for your practice.
