Knowing that it’s time to negotiate or renegotiate your dental office lease can feel like an impending cloud of doom, but there’s no reason to dread the process. Readiness is half the battle – a poorly structured dental office lease is detrimental to your business, while a well-crafted lease will allow your practice to thrive – and there’s always room to improve. Here are four simple tips to navigate a dental office lease renewal negotiation:
1. Get a head start on your renewal: If you’re late to the party, the landlord will demand a lease that favors their interests (both financially and legally), knowing that they can terminate your tenancy and evict you from the building/center if you don’t accept their terms. Start planning your renewal strategy 18-24 months before your lease expiry/renewal date.
2. Identify problem areas in the lease: Are there particular terms or clauses in the existing lease that prevent your practice from realizing its goals? For example, does language place restrictions on the number of associates you can bring in? Can the landlord relocate your clinic, on your dime? Does the lease permit a profitable practice sale, or does it entitle the landlord to proceeds of that sale?
3. Think about the future: Secure renewal terms that will support your future plans – expansions, ancillary service offerings, the potential sale of the practice, retirement and more.
4. Expect delays: Landlords aren’t all villains, but they do have their own agenda. They may try to stall or delay negotiations to purposely make you miss the renewal deadline, or get your dangerously down to the wire knowing they then have the upper hand in negotiations.
The surest way to end up with a favorable lease is to work with a skilled dental office lease negotiator. They’ll take the guesswork out of the process, and after an initial assessment to understand your operations, needs and goals, you can sit back and know that your practice and negotiation is in expert hands. For more information, visit www.cirrusconsultinggroup.com.