The details in your dental office lease can cost you hundreds of thousands of dollars in traps and pitfalls, easily making it one of the most significant documents you will ever sign. Landlords use the lease as a tool to make as much money as they can from a dentist, making it particularly critical that the terms and clauses within it are set up to help protect you, rather than hinder you.

Here are the top three traps to look for in dental office leases:

1. Relocation clause

Does your lease give your landlord the right to relocate your practice on 30 days' notice? Landlords are fully aware that a dental office is an expensive and difficult-to-relocate business that can take months to rebuild.

Two things can put you out of business in the event you are relocated:

  • You are forced to absorb the cost of rebuilding your practice from scratch that can be upwards of $350,000 — not to mention the demo/renovation of your current space and the move.
  • During the move, you may be faced with 3-12 months of practice "dark time" before the move is complete, meaning there is no incoming revenue, and business is at a stand-still.

2. Death and disability clause

Is there a death and disability clause in place that protects you in the event that something unexpected happens and you're unable to work? Is the lease set up so that your family/estate isn't stuck paying off your debts or monthly rent?

3. Assignment clause

Do you plan to sell your office sometime in the next 10-20 years? Are you sure your lease permits you to sell your practice at all? Unfortunately, many do not.

It's critical for dentists more so than any other type of tenant to ensure the lease agreement is set up properly to allow for the sale of the practice and lease transfer. If not, the landlord can either prevent the sale from happening or collect proceeds from the sale in exchange for granting permission to sell.

The above sections of a lease agreement, along with many others are not taught to dentists at any point in their careers, yet the success of the practice and the eventual exit from dentistry hinge on them. The best way to ensure your lease is set up with fair and affordable terms is to have the agreement reviewed by professional leasing experts before you sign it.