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Month: October 2017

Office Space Expenses, Contracts, and More!

Office Space Expenses, Contracts, and More!

If you’re a medical officer or general physician, you may be well aware of the cost factor that is considered one of the most expensive elements when it comes to finding the best place to rent medical office space. Remember, landlords, usually play safe. They may conceal some additional costs such as repairs & maintenance cost, fittings & fixtures cost, etc. that can require you to pay hundreds or thousands of extra dollars.

Mentioned below are some types of hidden costs that you can avoid if you carefully read the terms and conditions of your lease contract before signing it.

The Impact Of Inflation On Your Lease Contract

There are many incidents reported where landlord manipulated the lease contract by incorporating inflation allowances baselessly. For example, if your landlord has indicated the base year which is too old to reflect inflation, then there is a chance that it will artificially raise your lease cost in upcoming years.

Let’s understand it following a simple scenario. Suppose you entered into a contract to rent medical office space with your landlord at the end of 2016. Your landlord intentionally indicated 2016 as a base year in your contract to receive compensation for inflation cost in terms of operating expenses. If the operating cost goes up by $4/square foot, you will be incurring an additional cost of $4/square foot in 2017 and the following years. On the other hand, if you have pointed out your landlord to make 2017 as a base year instead of 2016 since you are signing a contract in December 2016, will not only save you an operating cost of a $4/square foot for 2017 but also in the upcoming years.

Additions And Upgrades If You Rent Medical Office Space

No tenant would ever wish to pay for any up-gradation cost like electricity, plumbing, sprinklers, and sewerage. If you add a sprinkler loop by yourself, it may cost you around $4 or more/ square foot. A lavatory to comply with the Americans Act of Disabilities can make you pay $12000 at least.

Therefore, you need to make your landlord agreed for keeping the building as per the required standards of medical tenants. Remember locating a building suitable for medical tenants by yourself is not suggested since you may not be aware of the very factors that with the help of professional property advisors you can deal with.

Repairs and Maintenance Costs

Extra services such as trash or snow removal are usually considered to be the responsibility of the landlord. But you must read the contract carefully to decide who will incur such cost before you sign a rental contract.

Breach Of the Law Concerning Real State Operating Expenses By The Landlord

Payment of operating expenses that includes utilities, cleaning tenant’s space & common area, lighting common corridors or car parking is supposed to be borne by the landlord. However, landlords may sometimes tend to bill their tenants inappropriately. They may bill you for the cost incurred that even doesn’t come under real estate operations.

Again, how would you know that if your landlord is billing you appropriately or not? Obviously, it’s difficult to catch unless you don’t have the services of good real states agents and brokers to help you out in this regard.

Unfair Obligations On Ending The Contract

We understand that being a medical practitioner; you sometimes need to put some add-ons. But what can bother you is to pay the cost to demolish them as your lease contract requires it.

This is truly unfair. You shouldn’t be held responsible for incurring such cost unless you have not constructed a special addition. For example, the cost of removing the sink’s plumbing would be fine, but demolishing partitions layout should not be your cost.

Often good real estate agents are well familiar with all such tricks that landlords play while writing up a contract for medical tenants. You are therefore advised, not to enter into a contract with your landlord on your own especially when you are about to rent medical Office Space.

Besides cost, there are some other factors that you may consider before you rent medical office space. We have listed some of those factors below.

Location To Rent Medical Office Space

Location is the far most important factor to look when you are considering to rent medical office space. Think for a while, if you are a patient and need some medical treatment, would you ever like to visit a place that is off the town? Obviously No. The most convenient location will be your top preference to have a medical checkup.

Now locating an appropriate place to rent medical office space can be tricky. You should seek the help of real estate agents since they will most probably be aware of the issues such as high rental costs, buildings with spacious car parking, etc. in specific areas.

Competition and Patients Availability

You may also wish to know if there are already enough medical offices to treat patients as compared to the proportion of the population of that area. Obviously, if there are enough medical facility houses previously existed, then it may not be appropriate to rent medical office space there. It is more likely that you will experience low numbers of patients coming to your place.

A professional property advisor may not be that helpful in this scenario but, he/she can suggest you some building, built purposefully and has a low cost to rent. You can then consider to give it a try, since renting a medical office far away from the town would also bring you no good.

Visibility Of Your Medical Office

It is more likely that you witness an increased number of patients if your building is quite visible. Visible buildings serve as a landmark for the masses. You can imagine, if you rent medical office space in such building, it may turn out to be most visited medical space in the city.

Facility of Adequate Car Parking

Sometimes people avoid visiting medical facilities centers having not enough space for car parking. What is so good for you to rent medical office space in such buildings having not enough space to facilitate patients for car parking?

Consulting a good real estate agent or broker will most likely bring you the right solution. They may suggest you some cost-effective site with spacious car parking for your patients.

Final Words On How To Rent Medical Office Space

We understand that the process of locating a reasonable building or site for your medical office can be a difficult task to do. It becomes even more difficult when trying to locate a medical facility center for your practice on your own. Although, finding a building for your medical office may save you a commission fee that you need to pay if real estate agent or broker is hired. But think the other way, the brokers or real-estate agents are likely to be the most experienced parties to help you out. They can help you in negotiating favorable terms of the lease agreement with your landlord.