Myths that can cost dentists thousands
Dentaltown Magazine’s February 2017 issue published an article saying that Google is the leading cause of tooth decay.
Google is, by far the #1 search engine, meaning that there’s a ton of information out there. And a good portion of that information about dental care is inaccurate regarding most DIY treatment. The dental patient consumer ultimately suffers due to misinformation. This is a thorn in every dentist’s side.
While it is doubtful that a dentist will go to the Internet and become a lease negotiation "Do-It-Yourselfer", there are misconceptions that can cost dental practitioners tens of thousands of dollars every year!!! How many dollars were sitting on the table during the lease negotiation that could be dollars in your pocket? And how much unnecessary risk are you shouldering due to the contents of your lease agreement? You’d be surprised!!!
It’s time to rethink your misconceptions about hiring a dental Broker, thinking all commercial leases are equal, and the most blatant: The dental tenant or buyer will get a discount in real estate costs if he/she doesn’t have a tenant rep broker.
Click to explore why these common myths often cost tenants like you thousands!
MYTH #1
ALL COMMERCIAL LEASES ARE EXACTLY THE SAME
MYTH #2
ALL COMMERCIAL BROKERS ARE EXACTLY THE SAME
MYTH #3
DENTAL TENANTS CAN SAVE MONEY WITHOUT EXCLUSIVE BROKER REPRESENTATION
MYTH #1:
ALL COMMERCIAL LEASES ARE EXACTLY THE SAME
ALL COMMERCIAL LEASES ARE EXACTLY THE SAME
How many times have you heard from a landlord “oh, it’s a “standard lease” and many tenants drink that Kool-ade.
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.
Many horror stories have occurred due to a belief in this myth:
- 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.
- A build-out contractor does shoddy work and the tenant is forced to pay the contractor prior by the terms of the lease.
- 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.
ALWAYS REMEMBER, when a dispute occurs, all parties look to the lease for resolution. A 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.
"I recently had the opportunity to work with Norman Gelfand and DENTREXX. I am a dental professional that knows very little about dental real estate who would be signing my first dental lease. I needed their assistance in this process.
I want to thank them for their assistance in helping me negotiate my lease. They were very responsive and forward-thinking with my best interests at heart. Their hard work decreased my proposed lease rate and secured additional tenant improvement dollars-which I didn’t even know I was entitled to receive!
I would strongly recommend DENTREXX to anyone that is in need of professional guidance in terms of lease agreements. I would be happy to speak directly with anyone that has questions or wants to discuss my experiences with this company."
Daekyu Hwang, DMD
Lakewood Dental
Bristol, CT
DENTREXX Does What Others Don't.
DENTREXX exclusively represents dental tenants and buyers in selecting strategic locations, negotiating money-saving Letters of Intent, and in negotiating business protective stipulations throughout the dental lease.
Leave the real estate portion of your dental practice to us.
FOCUS ON CASE ACCEPTANCE.
MYTH #2:
ALL COMMERCIAL BROKERS ARE EXACTLY THE SAME
ALL COMMERCIAL BROKERS ARE EXACTLY THE SAME
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 50+ 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.
Proper Letter of Intent submission for the best economics, and a skilled lease analysis to identify hidden business risks overlooked by many real estate brokers and attorneys are key components in developing a negotiation strategy to safeguard the dollars spent in opening ad operating a dental practice.
Our lease negotiation of the business stipulations protects 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.
A seasoned dental real estate tenant/buyer broker will be able to negotiate a lease that will become a vital part of developing an investment-grade practice and planning for a profitable exit strategy.
That’s the DENTREXX difference:
- We work for dental tenants & buyers only.
- We do not take property listings.
- Everything we do is for our tenant/buyer clients’ best interest.
We do one thing well – DENTAL REAL ESTATE. We represent one side – THE DENTAL TENANT.
We do what others don’t.
MYTH #3:
DENTAL TENANTS CAN SAVE MONEY WITHOUT EXCLUSIVE BROKER REPRESENTATION
DENTAL TENANTS CAN SAVE MONEY WITHOUT EXCLUSIVE BROKER REPRESENTATION
This is very common misconception that, again, puts the dental practitioner in an inferior position because the tenant doesn’t have anyone in his/her corner, watching his/her back.
The truth of the matter: Landlord’s pay their listing broker a set fee for marketing their property. And 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.
(Mis)information can cost you dollars and rob you of your sanity. Don’t let it happen to you!!!!!!
QUESTIONS? WE HAVE ANSWERS!!!
What dental practices don't know can cost them thousands...
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