Medical Office Lease Considerations

It’s crucial that physicians take proactive measures to ensure they are protected from the potentially dangerous language in the medical office lease. As a physician, make sure that you are asking the right questions so that nothing comes as a surprise. It’s also important to ask the seller about their lease obligations. Here is one main question to ask the seller: Will the office lease be assigned to you or will you have to sign a new lease?

Evaluating Significant Lease Terms

It’s possible that sometimes there could be hidden details and risks throughout the lease documents – which is why the documents should be professionally reviewed before moving forward with the new venture.

Here Are A Few Terms to Consider:

• Assignment Requirements: Are there any requirements in the lease that will affect your ability to sell or transfer the practice in the future?
• Term of Lease: How long is your lease term, and do you have renewal options?
• Personal Financial Obligations: Who is guaranteeing the lease? Will the lease be listed under your name? Will you be responsible for rental obligations in the event a future tenant fails to pay rent?
• Protection & Security: If an unexpected event occurs, do you have a death and disability clause in place to protect you and your family if you’re unable to work?
• Practice Location: Does your lease allow your landlord the right to relocate you? If yes, who pays for the relocation expenses?
• Practice Expenses: In group dynamic cases, how are the expenses dispersed in the lease and what will you be responsible for covering on a monthly basis?

Selling A Medical Practice in Ontario

Before leaving your medical practice, there are factors that physicians should be mindful of. One of which is familiarizing yourself with specific requirements or guidelines that may apply in your jurisdiction. Contacting a legal professional at Pickford can help you understand the rules that relate to your specific jurisdiction. Whatever the reason for closing the practice may be, the following outlines some aspects to consider in the selling process.

What Is Your Medical Practice Worth?

Every meaningful measurement of value must be considered because every medical practice is unique. Determining the value of your practice depends on multiple factors. Usually, a buyer willing to pay the price of your practice takes a look at the income it generates month-to-month and additional offerings that are of interest to them. That could include administrative and clinical equipment, location, lease obligations, cost-sharing setups, etc.