By Jeff Grandfield and Dale Willerton
For many healthcare tenants, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While a doctor focuses on proper patient care, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.
As explained in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES, tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for a doctor as the amount of rent he pays will directly affect the practice’s financial bottom line.
Whether you are leasing a new location for the first time or negotiating a lease renewal for your practice, these are some money-saving tips for healthcare tenants:
Apply Deposit to Future Rent: Frequently, you will be told that the deposit is your first and last month’s rent. Often, we can negotiate it to be the first and second month’s rent or even have it applied to month 24 of the lease agreement. There is simply no reason for you not to have your deposit reduce or eliminated over time as the so-called risk factor decreases. Landlords do not hold the deposit money in a separate trust account or pay interest on a deposit so negotiate hard on this condition.
Apply Deposit to Last Month: Before you put down a deposit of any size for the entire term of the lease agreement, read the fine print. You do not want your deposit held for the entire term of the lease and then refunded since getting it back can sometimes be difficult (especially if you are relocating or property ownership has changed). Try to have your deposit applied to a specific month’s rent, or to the last month’s rent of a lease term, to avoid these potential problems.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail request to [email protected].
Jeff Grandfield and Dale Willerton – The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail [email protected] or [email protected] or visit www.TheLeaseCoach.com.