Hopefully you have a real estate broker you trust, who negotiated your lease and got some favorable concessions for you. However, maybe that’s not the case. You might want to take some time to review your lease, paying special attention to the following:
You don’t want a clause that gives your landlord the right to relocate your entire practice on 30 days’ notice. This could be catastrophic to your business. Your practice could be effectively shut down for three to 12 months, with no incoming revenue and patients going elsewhere. In addition, you would be forced to pay for the rebuilding of your practice and any renovation of the current space. This could cost over $350,000 and countless patients you have worked hard to retain.
Death and Disability Clause
If you don’t have a death and disability clause in your lease, your family or estate is not protected from your lease obligations. They could be compelled to pay for the duration of your lease if something unexpected happens and you’re not able to work.
This one is especially tricky, because it can seriously impact your succession plan. If you have this clause in your lease, it may prevent you from selling your practice at all. Your lease must be set up in such a way that the sale of your practice and lease will transfer. Otherwise, the landlord can take legal action to prevent the sale of your practice, or even demand a share of the profit from the exchange.
For more information, see the full article.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.