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Dental Lease Agreement

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Dental Lease Agreement

When buying a practice, a dentist usually takes over an existing lease and may not have the leverage to negotiate a new lease. Nevertheless, if the buyer agrees to stay in the space longer than the seller, he or she may have the ability to get more friendly terms. The owner gives him a rental contract that appears to be a standard rental. As “any other” tenant has signed the “same” lease, the landlord asks him to sign the lease. Should he? No – not without consulting a lawyer. The Tenant expects the rent to be increased by one (1) year over the period from May 1, 2017, and then increased annually on May 1 for each year. The annual rent increase is based on the monthly rent for the previous annual rental period, plus an adjustment based on the change in the U.S. Department of Commerce`s consumer price index for the western region in which Washington is located. However, the adjustment cannot be less than 3% (3%) 2000.

or more than 6% (6%). Most leases provide that construction is considered complete when the lessor or contractor/architect certifies that the construction is “essentially completed.” Generally, this means that the “Punch List” items are filled out by the contractor after the practice is open to the activity, and this is certainly not the image that a dentist wants to present to his patients. A lease consists of two operational functions: law and business. The legal function should be handled by a licensed lawyer with experience in dental contracts, to ensure that all provisions are valid, whether in terms of orthotivity and operability. A dentist must always receive a legal check before signing a rental agreement. Death and disability – In order to protect the family of a solo dental practitioner, you should apply for automatic dismissal in the event of death or disability of the owner. What will happen to the lease if a dentist dies or becomes disabled? As a general rule, no standard lease will allow the dentist or the dentist`s estate to be exempt from liability. The dentist or discount must continue to pay the rent on the basis of the terms of the tenancy agreement.

Therefore, the dentist should always try to negotiate the release or termination of the lease if the tenant (dentist) dies or is disabled, in exchange for paying several months` rent after such an event. There are hundreds of horror stories told by dentists who blindly believed in the myths mentioned above. The results are low-performing sites, market-saving measures without construction bonuses and other lenders and the obligation of a lease agreement that does not contain the necessary provisions for operational protection. Dentists have lost their leases without their own fault, without it being possible to recover their capital investments. They have latent defects in the structure of the building that they cost employees and patients. They have held back their funding capacity — and the list continues. These horror stories rob wallets, cause sleepless nights and can be avoided with tenant protection provisions in the rental agreement. Housing problems – If the premises are part of a condo, make sure that the dental office is an authorized use of the premises. A dentist chooses to create his own dental practice, either by purchasing an existing practice or from scratch. It ends negotiations on the rent of the new practice, which includes free rent, extension options, tenant allowances. He`s excited and looking forward to signing the lease.

Here are some important things to consider when checking the conditions of a dental lease. Dentists: Your lease may be legally flawless, but is it bad for business? If so, you are not alone. Dentists are often under-represented in rent negotiations, which means they may be relocated by the landlord. Find out in this article from Pamela and Norman Gelfand how to negotiate a business-smart leasing contract. Many leases contain demea clauses

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