Dental and Medical Counsel Blog

Renegotiating Your Dental Practice Lease: What to Consider Before Signing

November 4, 2023
Dental office, dental lease, dental lawyer, dental attorney

Renegotiating a dental practice lease can be a daunting task, especially when it comes to understanding the legal jargon, market trends, and your rights as a tenant. As a dental professional, your primary focus is on providing the best care to your patients, which is why working with a legal team like Dental & Medical Counsel is essential. Our experts are here to guide you through the process of dental lease renewal, including key considerations, preparation tips, common negotiation topics, and how to secure the best lease terms for your practice. Learn more about what to consider regarding commercial lease agreements, and reach out to us for help with your contract and lease issues.

Should You Renew Your Lease?

Before diving into lease renegotiations, it's important to evaluate whether renewing your current lease is the best option for your dental practice. Some factors to consider include:

  1. Location: Is your current location convenient for your patients and staff, and is it still serving the needs of your practice? If your practice has grown significantly during the term of your lease, it might be time to move to a larger building.
  2. Growth potential: Does the existing space allow for future expansion or additional equipment if your practice grows? If your practice does have to expand in the near future, make sure the current space is large enough.
  3. Lease terms: Are you satisfied with the current terms of your lease, or are there unfavorable conditions that need to be addressed during renegotiations? For example, you might want to make it easier to modify certain aspects of the property.
  4. Market trends: Is the rental market in your area favorable for tenants, or would it be more cost-effective to relocate or negotiate better terms at your current location? You should always compare your current lease to the average rental rates in the area.
  5. Ownership: Do you think you have the capital to purchase your own property? Do you think this would provide you with the autonomy you need to improve your practice?

If you arm yourself with this information, you will put yourself in the best position possible to secure the right lease for your dental practice.

How To Prepare for Lease Renewal Negotiations

Preparation is key when it comes to lease renewal negotiations. If you prepare accordingly, you'll have the information necessary to secure the right lease. A few key points to keep in mind include:

  1. Start early: Begin preparing for negotiations 12 to 18 months before your lease expires. This will give you ample time to research, strategize, and seek professional advice.
  2. Review your current lease: Thoroughly examine your existing lease, highlighting any unfavorable terms and conditions that you would like to change.
  3. Conduct market research: Research the local rental market to understand current trends, comparable lease rates, and any available incentives for tenants.
  4. Consult with professionals: Seek advice from a commercial real estate broker, attorney, or a legal team like Dental & Medical Counsel to guide you through the process.

Because you are busy taking care of your patients, you may not have time to handle all of this on your own. You might want to reach out to an expert who can help you make sure you negotiate on your terms.

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Common Topics of a Dental Office Lease Negotiation

You can drive the least negotiation when you return to the table, and there are several areas you might want to address. During lease renegotiations, some common topics that may arise include:

  1. Rental rates: Negotiate a fair rental rate based on current market conditions, factoring in any anticipated increases in operating expenses.
  2. Lease term: Determine the length of the lease term, considering your practice's growth potential and future plans.
  3. Tenant improvement allowances: Discuss the landlord's responsibility for providing financial assistance for any necessary improvements or modifications to the space.
  4. Maintenance and repair responsibilities: Clearly outline the responsibilities of both the landlord and tenant for the maintenance and repair of the property.
  5. Termination and renewal options: Address the conditions under which the lease may be terminated or renewed, including notice periods and rent increase caps.

Always think carefully about which of these topics are most important to you.

How To Compare Your Lease Renewal Options

When comparing lease renewal options, it's crucial to consider a few factors. A few key areas of comparison include::

  1. Financial impact: Analyze the overall financial implications of each option, including rent, operating expenses, and potential relocation costs.
  2. Lease terms: Evaluate the terms and conditions of each lease option, paying close attention to any unfavorable clauses that could impact your practice.
  3. Space and layout: Consider the functionality and efficiency of each space, ensuring that it meets the current and future needs of your dental practice.
  4. Location and accessibility: Assess the location of each option in terms of patient and staff accessibility, visibility, and proximity to other amenities.

Remember that you might be able to leverage these offers against one another to help you improve the lease you sign.

How To Convince the Property Owner To Give You a Better Lease

To secure a better lease, consider the following negotiation strategies:

  1. Leverage market research: Present data on comparable lease rates, vacancy rates, and tenant incentives to support your negotiation position.
  2. Emphasize your value as a tenant: Highlight your practice's stability, timely rent payments, and positive impact on the property's overall value.
  3. Be flexible: Show a willingness to compromise on certain terms while standing firm on your most important requirements.
  4. Consider alternative lease structures: Explore options such as graduated rent increases, rent abatement, or a percentage rent arrangement to make the lease more favorable for both parties.
  5. Present a strong case: Prepare a well-organized proposal outlining your desired lease terms and the rationale behind your requests.

If you need experts who can help you navigate this process, our team is available to assist you with that.

Contact Dental & Medical Counsel for Help With Your Lease Renewal Negotiation

Navigating lease renewal negotiations can be complex and time-consuming. By partnering with the experienced legal team at Dental & Medical Counsel, you can focus on running your dental practice while we handle the intricacies of lease renegotiations. Our team understands the unique challenges faced by dental professionals and will work tirelessly to secure the most favorable lease terms for your practice.

Don't leave the future of your dental practice to chance. Contact Dental & Medical Counsel today to discuss your lease renewal needs and let our experts guide you through the process, ensuring that your practice continues to thrive in the years to come. We are always available to help you.

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Frequently Asked Questions 

Q: What is the importance of dental practice lease renegotiation?
A: Dental practice lease renegotiation is crucial for ensuring that your lease terms align with your practice's current and future needs.

Q: How can I determine if renewing my dental lease is the right decision?
A: Evaluate factors like location, growth potential, lease terms, market trends, and ownership to make an informed decision.

Q: What steps should I take to prepare for lease renewal negotiations?
A: Start early, review your current lease, conduct market research, and seek professional advice to prepare effectively.

Q: What are some common topics to address during dental office lease renegotiations?
A: Common topics include rental rates, lease terms, tenant improvement allowances, maintenance responsibilities, and termination/renewal options.

Q: How can I compare different lease renewal options effectively?
A: Consider the financial impact, lease terms, space and layout, and location/accessibility when comparing lease renewal options.

Q: What strategies can I use to convince the property owner to offer better lease terms?
A: You can leverage market research, emphasize your value as a tenant, be flexible, consider alternative lease structures, and present a well-organized proposal.

Q: Why is it essential to work with a legal team like Dental & Medical Counsel for lease renegotiations?
A: Working with a legal team ensures that you have expert guidance and support in navigating the complexities of lease renegotiations.

Q: How far in advance should I start preparing for dental lease renegotiations?
A: It's recommended to start preparing 12 to 18 months before your lease expires to allow ample time for research and strategizing.

Q: What role does market research play in the lease renewal process?
A: Market research helps you understand current trends, comparable lease rates, and tenant incentives, which can be valuable for negotiations.

Q: What can Dental & Medical Counsel offer to dental professionals during lease renewal negotiations?
A: Dental & Medical Counsel can provide expert assistance in securing the most favorable lease terms, allowing dental professionals to focus on their practice.

At Dental & Medical Counsel, we've been instrumental in realizing the practice goals of countless dentists. Whether you're looking to purchase, launch, or sell a dental practice, our expertise is your guide. Beyond the initial stages, we're committed to ensuring your dental practice remains legally compliant.

We provide comprehensive support, including employment law protections, dental contract reviews, and assistance with dental employment agreements. Additionally, we specialize in incorporating dental practices and securing trademarks. And for long-term planning, our services extend to helping dentists with succession and estate planning. Trust us to be your partner in every step of your dental practice journey.

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About Ali Oromchian, Esq.

Your Dental Lawyer

Ali Oromchian, JD, LL.M. is the founding attorney of the Dental & Medical Counsel, PC law firm and is renowned for his expertise in legal matters

Ali Oromchian, JD, LL.M., is a leading legal authority in dental law and the founding attorney of Dental & Medical Counsel, PC, with over two decades of experience. His deep connection to dentistry comes from his wife's nearly two-decade-long career as a pediatric dentist. 

This personal insight fuels his dedication to empowering dentists to navigate their legal challenges and achieve their practice goals. In doing so, Ali has helped thousands of doctors open their practices while maintaining legal compliance. 

Ali is frequently quoted and contributes articles to dental publications, including the California Dental Society, Progressive Dentist, Progressive Orthodontists, Dentistry Today, Dentaltown, and The New Dentist magazines, further showcasing his commitment to the dental community.


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