Starting your dental practice can be an overwhelming task. There are many costs associated with opening up a dental office. Utilities, dental office rent, equipment, insurance, salaries, and other miscellaneous expenses are factors you need to take into account. As of 2020, according to the American Dental Association, 201,117 dentists are working in the US. Having a dental office will help you set your practice apart.
If you are new to the field of dentistry or have no prior experience in dealing with real estate, it is best to seek professional help in setting up your dental office.
How Much Can Your Dental Office Rent Cost Your Practice?
Dentists pay about 6% to 9% of their income towards rent. The cost per square foot for a dental office greatly varies depending on the city you are in and the location you choose. For example, a dental office in Virginia of around 2000 sq. ft can cost about $9500 a month. A dental office of about approximately the same size in Washington can cost about $10,500 a month.
Los Angeles is the most expensive city in the US in terms of rental prices. Thus, the dental office rental prices are also on the higher end. In terms of rent, California is the most expensive state to rent a dental office in. Comparatively, states like Virginia, Washington, Florida, and Texas, among others, are lower on the rent scale.
If you are looking to save up on costs, then location is a key factor to consider.
Factors to Consider When Renting a Dental Office
You need to have a clear vision of what you want your dental office space to be. Without a plan in place, it is easy to get daunted with rental agreements. Without proper lease negotiation, you could end up paying rent on the higher end.
Decide on the location of where you want to set up your dental practice. As mentioned above, dental office rent prices can greatly vary depending on the state/city you choose.
Also, check the area. How many rooms would you need for your practice? Do you want a separate reception, waiting area, private office, labs, bathroom, staff lounge, private office, and more? The number of rooms you want solely depends on your requirement. This factor is important because it will determine the square footage area of your office.
Ask yourself if you have the necessary skills to negotiate a long-term lease with the provider. If you are unsure about any real-estate leasing clauses, then it would be best to engage the help of professional service experienced in setting up dental office spaces.
Should You Rent or Buy a Dental Office?
You should first take stock of your finances when deciding between renting and buying a dental office space. If you rent an office space, you have the flexibility to move about depending on the neighborhood performance. You do not have to deal with property or maintenance issues as they fall under the owner’s purview.
You would be spending at least 6% of your income as dental office rent. It is recommended you hire professionals to help you find the best dental office space and negotiate favorable lease terms on your rent.
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