Should You Lease or Purchase Space for Your Dental Practice?

Perhaps you are just starting to think about opening your own dental practice, or maybe you are planning on purchasing one but the physical location is undesirable. Regardless,  you may have also wondered whether you should lease or purchase a space. When making this important decision there are certain factors to consider, including control of the space, legal and financial liability, long-term stability,, and more. Below, our dental office real estate attorney explains in greater detail.

Control of the Space

One of the biggest differences between purchasing and leasing a space for your dental practice is the level of control you will have when using the space. If you purchase a space, you have total control over any changes you want to make.

If you lease a space, on the other hand, you will likely have to obtain approval from your landlord before starting any major renovations. This is particularly important for dentists, as extensive build-outs are often necessary when establishing a practice. For example, dentists often require plumbing build-outs to accommodate teeth-cleaning services. If you require build-outs, you will likely have to obtain your landlord’s approval. However, you may also be able to negotiate a better rental rate if your build-outs will improve the space.

However, leasing also gives you some flexibility, as you can choose to move to a more suitable space as your practice grows and expands. If you purchase space, you are likely committed to it for the long term.

Legal and Financial Liability

If you decide to lease, it is likely that you will not be responsible for paying for any maintenance required in the structure. This means if the building becomes damaged, your landlord will incur the costs of repairing it. If you purchase a space, you are the one responsible for paying for any of its upkeep. If there are accidents on the property, you may also be legally liable if you own the property. Still, there are other benefits associated with owning your own space, such as building equity in the property.

Stability Over the Long Term 

Stability over the long term is one of the biggest benefits that comes with owning your own space. You do not have to worry about the landlord evicting you, raising your rent, or selling the property to someone else who wants to use it for a different purpose. Losing the space your practice was operating out of and having to relocate can affect patient retention and your practice’s bottom line.

Our Dental Office Real Estate Attorney Can Help

If you are opening a new dental practice, or you plan to move to a new location, it is important to obtain legal advice. At AGS Law, our dental office real estate attorney can review the facts of your situation, help you determine whether leasing or purchasing is right for you, and negotiate on your behalf so your best interests are protected. Call us now at 801-477-6144 or fill out our online form to schedule a consultation and to get the help you need.