SEPARATING TENANT FACTS FROM MYTHS
Click to explore why these common myths often cost tenants like you thousands!
ALL COMMERCIAL LEASES ARE EXACTLY THE SAME
ALL COMMERCIAL BROKERS ARE EXACTLY THE SAME
WORKING WITH LANDLORD'S BROKER SAVES MONEY
ALL COMMERCIAL LEASES ARE EXACTLY THE SAME.
ALWAYS REMEMBER...
When a dispute occurs, all parties look to the lease for resolution.
An airtight dental lease negotiated by DENTREXX assures protections from these and many more business points that can pose a threat to the dental tenant’s revenue, and ultimately, profitability.
THE FACTS:
How many times have you heard from a landlord “oh, it’s a “standard lease” and many tenants drink that kool-aid.
The FACT is: All leases are NOT the same – There is no such thing as a “standard” lease no matter what any Landlord says. The Landlord may offer the same lease to all general office or retail tenants, but a dental lease is much more complex and has many more far-reaching consequences to the dental practitioner. The difference? The dentist makes a large capital investment in building out the location and establishing a practice and plans to be in place for a minimum of 10 years; and many times, upwards of 20 years or more.
During the lease term, many unforeseen problems can arise placing the dental practitioner in a captive position with a landlord – or worse, a lending institution. Why? Because the lease agreement did not address unforeseen events, placing the dentist at risk of devastating financial loss.
A few examples that do occur and have, many, many times:
- The building is foreclosed upon. That applies to current or future owners. The dentist loses his/her lease. The new owner may offer a new lease at a much higher rate, or force the dental tenant to relocate. What about the dollars spent on build-out? How are current lender or installment loans affected?
- A build-out contractor does shoddy work and the tenant is forced to pay the contractor prior by the terms of the lease. The tenant can sue the contractor and hope to receive restitution. The tenant may need to hire another contractor to make corrections – the dentist’s working capital suffers due to the additional expense and additional time needed to make the corrections. Major financial setback.
- The landlord has the sole right to determine if the practice can be transferred or sold. The selling dentist can lose a good opportunity to make a profit selling the practice.
- An adjacent tenant is emitting noxious odors, and the dentist is losing patients, revenue, and employees. If the lease doesn’t specifically protect the dentist, he/she has no recourse and will suffer financially.
MYTH #2
ALWAYS REMEMBER...
- We work for dental tenants & buyers only.
- We do not take property listings.
- Everything we do is for our tenant/buyer clients’ best interest.
THE FACTS:
How many dentists have fallen prey to hiring a commercial broker that has little experience in the true business needs of a dentist, and does not negotiate a lease that provides for risk protection, as well as cost savings?
How many dentists have hired a general commercial broker who is not intimately familiar with the importance of location? There are many, and some are paying dearly: in costs, and over-and-above, in the numerous lease stipulations that place the practitioner at a much higher level of business risk. These numerous stipulations are perfectly legal – but BAD business. If these business risks are not shifted away from the dental tenant, they can eat away at the dentist’s wallet and can cause sleepless nights.
Our 21 years of experience in exclusively representing dental tenants and buyers has educated us as to the importance of location to the dental practitioner. We work hard to find property dynamics that will place the dentist in the best location to reach the largest patient market.
Our lease negotiation of the business stipulations protect assets and increases profitability-because those assets are not at risk of loss. A healthy revenue stream is great – the more, the better. Revenue is threatened because huge risks in the dental lease are not eliminated or minimized.
We do one thing well – Dental Real Estate. We represent one side – The Dental Tenant.
MYTH #3
WORKING WITH A LANDLORD'S BROKER SAVES MONEY.
ALWAYS REMEMBER...
Misinformation can cost you dollars and rob you of your sanity. Don’t let it happen to you!
This is very common misconception that, again, puts the dental practitioner in an inferior position because the tenant doesn’t have anyone in their corner, watching their back.
The truth of the matter: Landlord’s pay their listing broker a set fee for marketing their property. That agreed-upon dollar amount is paid to the listing broker, whether the tenant has a broker or not. If the dental tenant has no broker, the landlord pays the listing broker the entire agreed-upon fee. If the dental tenant has broker representation, the Landlord’s broker pays a portion of his/her fee to the dental tenant’s broker – and there is no cost to the dental tenant.
The dental tenant does NOT save money by not having a designated broker. In fact, it can be a VERY costly mistake. There are no Landlord discounts to the tenant without broker representation.
All tenants or buyers in a real estate transaction have the legal right to licensed real estate broker representation. It’s meant to assure that all parties of a real estate transaction have equal representation, leveling the playing field. Fiduciary responsibility is established and conflicts or interests are eliminated.
Exclusive Licensed Broker Representation – AT NO COST.
