If I were to ask you which part of your veterinary office lease agreement is the most important, what comes to mind?
I doubt you would consider the assignment clause – the clause which governs your ability to purchase a clinic or transfer the lease alongside the sale of your veterinary clinic/hospital. You probably wouldn’t think about the surrender clause – the clause which outlines how you are meant to leave your space when your lease term ends. Almost certainly you wouldn’t think about the relocation or redevelopment/demolition clauses, which, if exercised by the landlord, could unexpectedly force you out of your space! No, I’m willing to bet you immediately thought the most important part of your lease is the rent. Well, I hate to be the bearer of bad news, but….it’s not just about the rent!
While rent is certainly one of the key components of any lease, I’m here to teach you that it should not be your number one concern.
It’s Not Just About the Rent
Who could blame you for believing otherwise? Rent is the most obvious cost that a veterinary tenant incurs. Sometimes the payment of that monthly cheque is the only contact a veterinarian has with their landlord all year. It is therefore no surprise when a veterinarian focuses entirely on achieving the lowest rental rates possible at negotiation time, completely ignoring the rest of the lease agreement. However, to be perfectly frank, this approach is just plain wrong. Rent may be an “obvious cost”, but there are numerous hidden yet important costs that you should be more concerned about.
Hidden Costs vs. Obvious Costs in Your Veterinary Office Lease Agreement
An Assignment Nightmare
One such hidden cost is often found lurking in the assignment […]