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- Jul 10, 2007
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At my first office (used to be an OBGYN office), my 5-year lease contract expired 2 years ago. The landlords management company called me and asked if I wanted to renew the lease. After I said yes, they faxed me a 2-page renewal contract and I signed it. I love this landlord because he (who is a retired engineer) hires a management company. Whenever there is the problem with the plumbing or the AC unit, the management company sends someone to fix the problem right away.for those of you who own a practice but are tenants...what can you do to have some control over maintaining a reasonable rent? what keeps the landlord from raising your rates? i would imagine it's very difficult to move a practice once you are established (which I'm sure the landlord recognizes), leaving you at a major disadvantage while negotiating.
so what i guess i'm getting at is: what are typical terms to a lease regarding years, and what are your options once that lease expires?
At my second office (which I started from scratch), the 5-year lease contract expired about 3 years ago. Neither the landlord nor I called each other to renew the contract. So it is now pretty much month-to-month lease and Ive been enjoying the same low monthly rate of $2059/month for the past 3 years.
At the third office (which I bought from a retired orthodontist), I signed a 7-year lease contract. Ive only been at this location for 3 years so I dont know what the landlord will do when the contract expires. There is an empty 600sf suite right next door. This landlord has begged me to lease this space (for a very good deal) but I said no.
Many landlords dont have 100% ownership of the building. Many of them had to take out loans to purchase the buildings. When the tenants leave, the landlords will have the problem paying the monthly mortgage. This is why many landlords like to rent the spaces to the dentists and doctors because they are most stable and most reliable tenants.