If you are new to leasing a property for your healthcare practice, the property you will be leasing can make or break your business. Therefore you must be on the lookout and make sure that the agreement of the lease is transparent. When you sign a lease, make sure all the terms of the lease are laid out in front of you. If there is any unfavorable clause, bring it to notice. Get legal advice from a healthcare practice attorney to avoid falling for an unfavorable situation.
A bad condition of the property:
Whenever you are on the verge of signing a lease for your business, it’s a good idea to run a background check and see if the property is regularly maintained by the landowner. Also, make it a point to see if there’s a lot of space that’s unoccupied, since it’s usually a sign that something must be wrong with the property. Do not forget to get in touch with previous or present tenants to gauge the landowner.
A relocation clause:
Make sure there is no relocation clause, as it gives the landowner the right to relocate your practice to a different location if it is a multi-tenant property. This could prove to be harmful as a potential relocation could mean less visibility of your practice or insufficient parking. Moreover, it does not look good and would also confuse your patients.
No non-disturbance clause:
Also, see if there is a non-disturbance clause in place. This would make sure that your rights as a tenant are protected, and under no circumstance can the landowner ask you to move or relocate. This is very crucial, as any such disturbance can disrupt the smooth operation of your practice.
Recapture clause:
Do you plan to sell your practice someday? If the answer is yes, make sure that there is no recapture clause in the agreement. But what does it mean?
Usually, if you sell your practice before the lease ends, the new owner can run the practice. However, if there is a recapture clause and you sell your practice before the lease ends, the landlord has the right not to let the other owner run the practice on his property.
Final thoughts:
Apart from the aspects mentioned in the blog, there are other things as well that could go wrong. You should get an attorney to review the agreement before you sign the lease.
