Many doctors consider renting a Medical Office and are unsure if it is a better option than buying or building their own office.

Before that step, you should consider in detail the best location, and once you know where, the next step is whether to rent or buy a property for your medical practice.

For many doctors, when first starting out, they simply cannot afford to purchase or build an office.

With this in mind, here are the main pros and cons of Renting a Medical Office as a Doctor:

Advantages of Renting A Medical Office

– Typically, when renting, you often need the first and last month’s rent, but you don’t need a down payment. This can be a sizable saving for a newly established doctor.

– When you rent, you can pick the space and size of the property that you’ll need.

– If you wish to move your office, you simply have to wait for your lease to finish. This is a big advantage if the location isn’t ideal for you.

– Lease sites tend to have have high-visibility locations (e.g. shopping centers) that can be difficult to duplicate for property you’re building. Leasing might be cheaper.

Disadvantages of Renting A Medical Office

– The biggest disadvantage is that you don’t create equity in your property. All money spent on the rental is lost money. Although it is an expense of the business so can be offset in the profit and loss.

-Any improvements you make to the property will revert to the landlord at the end of the lease period. You’ll have no control over common area maintenance fees if they are included as part of the cost of the lease.

– Expanding the facility may not be possible, as the landlord does not want to renovate or alter the building.

– If you decide to sell your practice, this can become more complicated because the lease may need to be renegotiated or the landlord may need to approve the practice’s new owner.