How may times have you heard from a landlord “oh, it’s a “standard lease” and many tenants drink that cool-ade.
The FACT is: All leases are NOT the same – There is no such thing as a “standard” lease no matter what any Landlord says. The Landlord may offer the same lease to all general office or retail tenants, but a dental lease is much more complex and has many more far-reaching consequences to the dental practitioner. The difference? The dentist makes a large capital investment in building out the location and establishing a practice and plans to be in place for a minimum of 10 years, and upwards of 20 years or more.
During the lease term, many unforeseen problems can arise placing the dental practitioner in a captive position with a landlord – or worse, a lending institution. Why? Because the lease agreement did not address unforeseen events, placing the dentist at risk of devastating financial loss.
A few examples that do occur and have, many, many times:
The building is foreclosed upon. That applies to current or future owners. The dentist loses his/her lease. The new owner may offer a new lease at a much higher rate, or force the dental tenant to relocate. What about the dollars spent on build-out? How are current lender or installment loans affected?
A build-out contractor does shoddy work and the tenant is forced to pay the contractor…READ MORE..