For many reasons, renting medical office space for your practice may be more practical and profitable than purchasing a building to house your practice. Both processes can be time-consuming and stressful, here are 6 reasons you may want to rent vs. buy medical office space for your practice.
- Lower Costs – If you can find an existing space with the layout you need for a medical practice, then less capital will be needed to convert the space to fit your needs.
- Landlord support – Renting medical office space often means that the landlord will provide some financial support to convert the property, particularly if your lease is long-term and they know that income will be generated for years to come. Maintenance and repairs are often negotiable as well.
- Speed-to-market – Renting vs. buying means that you will save time along with money because there will most likely be shorter construction times for upgrades than a full remodel.
- Cash flow – Renting eliminates the large cash expenditure required to purchase a building and frees capital to be used in other areas of your practice.You may be able to generate more income from your practice by investing the down payment you would have had to pay. Depending on your practice and the opportunities you have to invest, the return on investment may be higher than what you could achieve investing in purchasing you own medical office space.
- Flexibility – Should your practice expand and outgrow your current building, it is easier to move on to larger offices and visa versa.
- Time – as a medical practitioner, your workload is often full. Adding owner and property manager to your tasks can impact the time you devote to your practice.