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What is a Dental Office Lease?
A dental office lease is a type of commercial lease agreement a dental practice owner will sign with a landlord to rent the commercial space needed to run their dental practice. This type of lease will typically last for 5 to 10 years since there may need to be a significant investment in the buildout of the space and equipment.
Common Terms in a Dental Office Lease
Dental office leases can vary based on their terms, but below are some common terms you may find:
Rental Amount and Increases
This section will outline the monthly rent amount as well as outline rent increases that may be part of the contract.
Term of the Lease
This section will cover how long the lease will last, which is typically between 5 to 10 years for a dental practice.
Improvements and Modifications
This section will cover how the tenant can make modifications and improvements to the space. Given dentist offices typically require a lot of custom buildouts and equipment, this section of the dental office lease is particularly important.
Maintenance and Repairs
This section will cover who is responsible for making repairs and maintaining the office space. This is also important given the uniqueness of dental equipment and facilities.
Insurance and Liability
This section will outline the insurance requirements for the tenant and landlord. This may include malpractice insurance, property insurance, and general liability insurance. The landlord will want to require insurance to make sure the dental practice is covered and can continue to pay rent in case of any accidents or issues.
This section will ensure the tenant complies with any relevant regulations, like HIPAA (Health Insurance Portability and Accountability) and health and safety regulations.