6. Not Reading the Fine Print
Dentists often fail to understand how important it is to read their lease thoroughly. By not doing this, they won't understand what it is they're agreeing to.
One of the reasons to carefully read your lease is that there may be arcane language written on purpose to confuse prospective tenants.
Your landlord might try to sweet talk you into signing it before you had a chance to go through it. He might say that "It's all standardized language." Then he might add "All my other tenants signed it without a problem" with the implied suggestion that you should do the same.
Don't make this mistake.
Take the lease home with you and take all the time you need to read through it. If you want an expert opinion, hire a tenant rep to go over it with you. All leases favor the landlord, but a tenant rep can make them less favorable to the building owner and more beneficial to you.
Some commercial leases have "percentages of sales" clauses inserted into their contracts, which is illegal for healthcare leases. Sometimes, landlords try to get away with doing this.
The result could be enormous fines for both the practitioner and the landlord.
7. Making an Impulsive Decision
Sometimes, you rush into an office-leasing decision because of a time crunch, or your landlord might be pressuring you. However, when you rush into things, you're at risk of making a wrong decision.
Make sure you allow plenty of time to find a new space. If you wait too long, you'll make your choice based on time constraints rather than making the choice that's best for you.
Landlords count on this because you'll end up leasing space out of sheer desperation. When this happens, the landlord always benefits.
8. Hiring a Full-Service Agent
When you’re looking for your first office space, hiring a full-service agent is one of the biggest mistakes you can make.
A full-service agent is one who works for both you and your landlord, which is called "dual agency." Some states make this practice illegal.
Avoid a Conflict of Interest
If you go with the dual agency broker, you won't get a deal that's favorable to you. Moreover, you'll leave money on the table. Why would you go with the landlord's broker when you could hire a tenant rep?
That would be like if you were charged with a crime and just let the prosecutor represent you, which wouldn't make sense because it's a conflict of interest. Just like going with the landlord's broker is a conflict of interest.
Won't Cost You a Dime
Many medical professionals think hiring a tenant rep will cost them money. The reverse is actually true.
A healthcare real estate broker not only doesn't cost you a dime, but he'll also save you money. That's because he'll be your tireless advocate come negotiation time and will make sure you come out the other side a winner.
Best of all, the money for his services comes out of the landlord's pocket. Not your own.
Extensive Market Knowledge
A tenant rep has market knowledge to which you're not privy. For example, there might be a 2,000 unit senior living complex planned for an area you're considering for your practice. If you're a geriatric healthcare provider, this would practically guarantee you a patient stream for years to come.
But if you're looking for office space on your own, you might not hear about this.
However, your tenant rep will most definitely know about it and many other market opportunities. One of these opportunities could be precisely the office space for which you've been searching.
At HPRG, we've been specializing in healthcare real estate for over 20 years, so we know what we're doing. Call us today!