Top Red Flags In Dental Healthcare Leasing

Certain difficulties come up in the way while opening a dental clinic. One of the main difficulties in opening a dental health clinic is attracting patients. Many people are afraid of visiting the dentist, so it can be challenging to get them to come to your clinic. Another difficulty is the high start-up costs associated with opening a dental health clinic. 

You will need to purchase dental equipment and supplies and lease or purchase a facility. You will also need to hire a staff of dental professionals, which can be difficult and expensive. A Bakersfield Dental Attorney can help guide you through such difficulties and make your business successful. 

Top red flags in dental healthcare leasing

  • Financial troubles of the Landlord

The landlord’s financial troubles can have a devastating impact on the tenant, especially where the landlord is the owner of the building. There are several reasons why a landlord’s financial difficulties may arise. 

For example, the landlord may have over-extended themselves in their purchase of the building and can now not make mortgage payments. In addition, the landlord may have taken out a loan to finance renovations to the property and can now not make payments on the loan. The landlord’s financial troubles may also arise from the mismanagement of the property.

  • Lack of Non-Disturbance Clause

Non-Disturbance Clause is an agreement that stays on top concerns of dental landlords and another top concern of dental tenants.

It is important for a tenant to have the right to assign or sublease the property without the landlord’s approval. These are known as “free and clear” rights. They are especially important in the healthcare industry because healthcare providers are often subject to mergers or acquisitions.

  • Unclear CAM charges

A CAM charge is a monthly fee assessed by the landlord in addition to rent. The fee is used to cover the cost of maintaining common areas in a building, such as the parking lot, landscaping, hallways, and lobbies. CAM charges can also include utilities, such as water and electricity, used to maintain common areas.

The problem with CAM charges is that they are often not clearly defined in dental office leasing contracts. Landlords may try to include charges for items that are not actually common areas, such as the roof or HVAC system. They may also include charges for items that are the tenant’s responsibility, such as janitorial services.

  • Relocation clauses

When a dental healthcare leasing company is moving your equipment to another office or a new location, there will be some charges associated with the move. These charges will be based on the size and weight of your equipment and the distance it needs to move. You will need to get a quote from the company to determine how much the relocation charges will be.