Entering the right commercial property is important for any business, but it is particularly essential for the healthcare industry. You want to make sure your practice is at a location where your patients can easily locate you. 

Whether you want to lease a property for the next three months or years, you will be required to sign a lease contract by the landlord. Of course, like anybody else, you too want to maximize your revenue and grow your business with minimal problems. Therefore, before you sign a lease, there are certain red flags that you need to watch out for. A healthcare business attorney California can help you avoid making any mistakes. 

Red flags when signing a lease for your healthcare practice

  • Landlord’s financial troubles. 

Before you sign the lease, ask the landlord to show you the property. Explore each area of the property well and pay attention to the following factors.

  • Maintenance and cleanliness.
  • The number of unoccupied spaces in the property.
  • Positive or negative reviews from other tenants.
  • If the landlord is unwilling to discuss tenant improvement (TI).

Keep an eye for these things, as your landlord’s financial troubles can show in different ways. If they are struggling, it is likely that they can uphold their financial obligations of the lease. This could pose problems for your practice and affect your business in California. 

  • No non-disturbance clause. 

It can be very difficult to determine your landlord’s financial condition only by meeting them on a few lease negotiation meetings. If a landlord has taken a debt and fails to pay it off, the lender may foreclose on their property, which will make you lose your practice as well. Adding a non-disturbance clause will help you stay protected even if the property goes into foreclosure. 

  • Too good to be true projections. 

Sometimes landlords make big claims about their property by presenting outstanding business success rates. It is a red flag when the area is known to have economic disruptions, but your landlord shows numbers that do not match the area and time. Chances are, they might be lying to you to make you sign the contract. To be sure, make sure you ask for documented proof of their claims. 

  • Relocation clauses. 

If your healthcare practice is in a place with other occupied spaces, such as a mall, a relocation clause gives your landlord the right to relocate you to another area of the property. This can not only invite nuisance and extra work for you, but the change of locations can affect your business as well. Some factors that can be harmful include inadequate parking, poor visibility, or confusion for patients visiting your office.

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