Get It Right The First Time - Dental Office Leasing

Leasing space for your dental office can be a complicated endeavor. Consider working with an experienced professional that has helped many dentists get the right terms at the right price.

George Vaill has this type of dental office leasing background. Below are some of the some of the concepts you should understand before signing any lease agreement...

Types of Commercial Dental Office Leases

> By George Vaill

Understanding how rental charges are determined and allocated is very important if dentists wish to safely and effectively negotiate terms within their budgets. The one thing most dental practice leases have in common is that, in addition to specifying the amount of "rent" to be paid, they require that dentists also pay the landlord's operating costs (real estate taxes, insurance premiums, maintenance costs, etc.).

While there are unlimited variations on who pays what and what is or is not included in "rent", there are four common approaches and they are often referred to in the following manner:

• Gross Lease

The dental office tenant pays a set amount of base rent (sometimes called fixed rent, annual rent or minimum rent), normally with built-in future increases. The landlord pays the operating costs. In addition, the tenant typically pays for utilities, suite janitorial and maintenance.

• Pass-Through Lease

This is the same as a Gross Lease except that, starting with the second year, in addition to the base rent, the dentist-tenant also pays a proportionate share of any increases in the operating costs paid by the landlord in the first year. In addition, the tenant typically pays for utilities, suite janitorial and maintenance.

• Full Service Lease

This is essentially a Gross Lease, but one in which all utilities, suite janitorial and maintenance are included in the base rent. There normally are built in future base rent increases and sometimes, also, operating cost pass-through increases.

• Net Lease

The dentist pays base rent, normally with built-in future increases. The base rent includes no other charges. However, in addition, the dentist-tenant also pays a proportionate share of all operating costs. In addition, the dentist typically pays for all of its own utilities, suite janitorial and maintenance.

As you might imagine, it is easy to get confused, even tripped up by a fast-talking office broker or landlord. So understanding what is at stake and how the landlord's program is set up is paramount if you wish to avoid a rude surprise when it comes time to pay the "rent".

© George Vaill 34 Edward Drive, Winchester, MA 01890

George D. Vaill is president of George Vaill Dental Office Lease Negotiations. He specializes in negotiating the economic elements of office leases for dentists throughout the United States. Additionally, George reviews, and in many cases renegotiates, leases as part of dental practice transitions.

George@GeorgeVaill.com • 800-340-2701

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For Complete Dental Marketing Consulting and Dentist Coaching Services Contact...

Dick Chwalek of Niche Dental

• He is also Founder & Member of the Northern Dental Alliance
• As well as Founder & Director of Niche Dental Collaborate