After your dental degree, the lease for your dental office location is the cornerstone of your practice. Having a bad lease not only creates operational headaches for you throughout the length of the lease, but it can also make it next to impossible to sell your practice on the timeline or terms you want.
How we help
Your commercial lease has a significant impact on both your day-to-day operations and the value of your practice. If you’re starting up a new practice or buying an existing one, you need to negotiate with the landlord when it comes to things like rent, term, renewal terms, use, exclusivity, etc. DMC has been dealing with leases for dentists since 2010 and we know the terms and clauses that will affect your practice now, and when you look at selling. We will negotiate hard to get you the best deal possible while protecting your rights.
How does a bad lease hurt my practice?
What would you do if you had been growing a successful dental practice, the sale of which formed part of your retirement plan and finances and then one day your landlord wrote to you advising that they will be demolishing your building and you have 90 days to vacate? Can the property owner really do this to you? The short answer is Yes. Without proper review and negotiation of your lease, you could be agreeing to terms that can cost you thousands down the road, and even impede your ability to sell your practice. For example:
- A property owner could have rights that impact your daily use of the premises and ability to run your practice, such as rights of entry, limitations on advertising, use of the space, and hours of operation.
- You may have to pay additional costs each year in rent increases, leasehold improvements or landlord-imposed compliance matters.
- Relocation and demolition clauses could force your practice to close for a period, require you to move to a new location with less street visibility, or allow the landlord to terminate your lease prematurely.
These are only a few examples of the many ways a bad lease can hurt your practice. DMC’s commercial leasing lawyers have reviewed and negotiated leases for dentists with all kinds of property owners, from single property owners to multi-national real estate investment trusts, and we know how to spot and eliminate what could turn become time bomb for your practice.
Why do I need a lawyer to renew my lease?
Navigating lease renewals can be complicated and landlords can often use this process to make changes to your areas of the lease that they were willing to accept when looking for a tenant initially (e.g. exclusivity in the building, limitations on advertising and use of the space, and restrictions on hours of operation). Similarly, property owners often use the renewal to add in conditions favourable to them (e.g. a demolition clause) which will hurt your ability to sell your practice in the future. Lease renewals often have complex legal language and changes can get hidden within clauses you take for granted and don’t focus on. A lawyer will understand the nuances of each term and change proposed by the property owner and will be able to make sure you and your practice are sufficiently protected. DMC’s experience in the dental industry means we know the distinct areas of a lease that will negatively impact your practice the most (e.g. demolition clauses, leaseholds, assignment options) and will negotiate the terms in your favour and make sure there are no hidden disasters which could cost you money down the road.
Why do I need to worry about my lease if I’m selling my practice?
If you’re starting up a new practice or buying an existing one, you need to negotiate with the landlord when it comes to things like rent, term, renewal terms, use, exclusivity, etc. The purchaser of your dental practice will likely require bank financing to complete the purchase. A bank will require security, which includes the comfort of knowing the purchaser can be a tenant for the entire length of time they are repaying the bank loan. Bankers also understand that the value of a dental practice rests partly on the time remaining on the lease and it’s renewal options and will be unwilling to extend financing without favourable terms, hindering your ability to sell your practice for what you deserve or at all.
DMC’s commercial leasing lawyers can help by reviewing your lease to see if any issues need to be addressed or can be improved. We will ensure that before the selling process gets underway, you have a solid lease that will make your practice even more attractive to potential buyers so you can get the best price without any last-minute problems with the property owner complicating and holding up the process.
What do our clients say?
““David and Michael are both great to work with. They worked with me negotiating a lease for a new start up office. It was an intense lease dealing with a very large developer. Through the negotiations they were able to protect me as a tenant specifically relating to being a dental office.”Dr. S.C.
“I want to thank David Mayzel for his help navigating the ins and outs of my first commercial lease for my new dental practice. This was an exceptionally long and difficult negotiation and David’s commitment, attention to detail and persistence toward achieving the best outcome possible was evident throughout.”A.M-S.
“I used DMC LLP to help me negotiate a lease. When I sent Michael the first version of the lease, in no time at all, he sent me back an email pointing out the various deficiencies, as well as terms and conditions which I should try to include to protect myself and promote my interests.”Dr. A.DDS
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