So you have decided to own all aspects of your new dental clinic, including the real estate. Whether you are a new buyer or a seasoned owner-operator who wants to expand, you should research before buying a real estate dental practice.
Although the dual purchase concept may seem straightforward initially, the added real estate element may introduce some nuances you may not have considered. Therefore, it is essential to contact a Huntington Beach Dental Attorney before taking any step in buying a dental practice.
Things to consider when buying dental practice with real estate
- Separate appraisal for the property
A dental practice appraisal is an analysis of a dental practice’s value. The appraiser will take into account the location, condition of the property, and any improvements that have been made to the property.
If you plan to open a dental clinic, you will need to have a separate appraisal done for the property. This is because the property’s value will be different than if you were going to use it as a residence. The appraiser will need to take into account the size of the property, the location, and the type of business that you will be running.
Many dental practices are located in commercial buildings, so if you are planning to purchase a building, you will need to have a commercial appraisal done. The appraiser will analyze the location, condition of the property, and any improvements that have been made to the property.
- Lease for the premises
Leases are necessary for dental clinics because they provide stability and predictability with regard to the clinic’s monthly rent expenses. This is important because it allows the clinic to better forecast its budget and plan for future expenses. Additionally, leases typically include provisions that protect the tenant from unexpected increases in rent or other changes that could negatively impact the clinic’s operations.
- Additional Insurance Requirements
There are a few insurance requirements that are necessary for opening a dental clinic. The first is professional liability insurance, which will protect the dentist and the staff from any lawsuits that may arise from the provision of dental care. The other one is property insurance, which will protect the building and contents of the clinic from any damage or theft. The third is workers’ compensation insurance, which will provide coverage for any injuries sustained by employees while working at the clinic.