Your Guide to Starting a Practice & The Dental Office Lease - 3

NEGOTIATING IMPORTANT LEASE DOCUMENTATION
STEP 4: Review & Negotiate the Offer to Lease or Letter of Intent

Once	you've	selected	the	ideal	practice	location,	you	will	be	presented	with	the	Offer	to	Lease	(OTL)	or	Letter	of	Intent	
(LOI)	by	the	landlord,	which	is	essentially	the	short	form	of	the	dental	office	lease.
These	documents	outline	the	key	lease	terms	for	the	property	such	as	length	of	term,	rental	rates,	commencement	
date, options to renew, tenant improvement allowances, deposits, etc. Work with your professional dental office lease
negotiator to ensure that the final document aligns with your practice needs.

								

STEP 5: Begin the Preliminary Office Drawings

Once	the	LOI	has	been	finalized,	work	with	your	dental	supply	partners	at	Henry	Schein	to	begin	planning	out	your	
new	office.	Questions	for	consideration:
	
	
	
	

Where	will	each	room	be	located,	and	what	are	your	size	requirements?	How	many	hygiene	rooms	and		
	
operatories	will	you	have?	What	will	the	reception	area	and	your	private	office	look	like?
What	type	of	equipment	will	you	need,	and	where	will	it	go?
Is	the	space	set	up	with	the	appropriate	plumbing	and	electrical?	What	will	you	need	built	and/or	installed		
prior to move in?
What	type	of	lighting	do	you	require?	What	are	your	colour	scheme	and	flooring	preferences?

STEP 6: Negotiate the Details in the Dental Office Lease

Once	the	preliminary	designs	are	drafted	up,	the	next	step	is	having	the	details	in	the	office	lease	reviewed	and	
negotiated	by	a	professional	dental	office	lease	negotiator.	
The	lease	is	a	much	more	extensive	and	in	depth	contract	than	the	OTL	or	LOI,	and	is	typically	written	in	a	very	
landlord-favored way. Landlords strive to increase the value of their properties by enforcing clauses in the lease
that enable them to raise rent or prevent a practice sale from happening. Some important considerations in the
lease include:

								

Economics: Are the rental rates fair? Are the annual escalations reasonable?
Personal Risk: Is the lease written in your personal name, giving the landlord the right to pursue your
personal assets in the event of default?
Flexibility: Does your lease allow you to bring in associates or sell your dental practice?
Location Protection: Is there a relocation clause that gives the landlord the right to relocate you whenever
they want, at your expense?
Termination Rights: Is there language in the lease that gives your landlord termination rights, with the
ability to kick you out of the building?

Research and a thorough lease review and negotiation strategy are essential here as the lease dictates
your responsibilities as a tenant to your landlord over the next 10 years; there is no room for error. Your
negotiators will work with you to develop a customized negotiation strategy for improving your lease to
ensure it meets your practice needs, and properly protects you from risk.
(See next page for steps 7-9)

1.800.459.3413
www.cirrusconsultinggroup.com

http://www.cirrusconsultinggroup.com/solutions-for-dentists/services/professional-lease-negotiation-services/ http://www.cirrusconsultinggroup.com/solutions-for-dentists/services/professional-lease-negotiation-services/ http://www.cirrusconsultinggroup.com http://www.cirrusconsultinggroup.com

Your Guide to Starting a Practice & The Dental Office Lease

Table of Contents for the Digital Edition of Your Guide to Starting a Practice & The Dental Office Lease