The Hidden Risks in a Dental Real Estate Lease: What Every Startup Dentist Needs to Know
If you’re preparing to open your own practice, your dental real estate lease might seem like just another item on the checklist. But here’s the truth: this one document can either secure your financial future or put it in serious jeopardy.
And surprisingly, the biggest dangers have almost nothing to do with the price per square foot.
In this article (Part 1 of a 3-part series), we’ll walk through one of the most common—and costly—failures we’ve seen in dental real estate leases. As someone who’s helped launch over 900 startup practices, I want you to go in with eyes wide open.
Because while your future practice may be filled with patients, your lease could quietly drain its value if you’re not careful.
The Lease That Quietly Robs You of Practice Value
Let’s start with a reality that surprises a lot of doctors:
Your current landlord—the one you’ve had a good relationship with for years—could make your departure from your space either a smooth transition… or a financial disaster.
Here’s how it plays out:
Say you’re ready to expand or move to your dream facility. You’ve paid rent like clockwork. You’ve even made improvements to the building. And now you feel confident negotiating a better deal—or exploring a new location altogether.
But what if your dental real estate lease includes a clause restricting you from practicing in the same town? Yes, it happens.
Or worse…
A Real-World Example (and a Nightmare You Can Avoid)
Imagine this:
You casually mention to your landlord that you’re considering relocating.
A few days later, you receive a notice: you’ve violated your lease terms by working in the office outside “normal business hours.”
Sound minor? Here’s the catch:
Because of a clause you didn’t pay much attention to years ago, your landlord documented every weekend or evening you came in to catch up on admin or treat an emergency patient.
Now, he’s using that as leverage. The notice says you owe the full remainder of your lease—say $60,000—and you need to vacate the space immediately.
It’s a legitimate, enforceable clause.
And if that landlord decides to put a lien on your practice to collect those funds? Well, you’ve just discovered the hidden cost of not understanding your lease.
Business Leases Aren’t Like Apartment Leases
Here’s a key point that too many dentists miss:
Commercial leases are not built to protect the tenant.
Unlike residential leases, which are full of tenant-friendly provisions, commercial real estate contracts favor the landlord—and they assume you’ve had the legal support to protect your own interests.
Which means if the lease says it, it’s binding.
There’s no “that doesn’t seem fair” clause in court.
How to Protect Yourself (and Your Future Practice)
The good news? These nightmares are avoidable—if you plan ahead. And by “ahead,” we mean 12–18 months before you plan to move or renew.
Here’s how:
1. Review your current lease thoroughly
Start now, before you say a word to your landlord. We’ve helped hundreds of dentists uncover hidden liabilities—and negotiate better terms—just by reviewing what’s already in writing.
2. Don’t go it alone
You need support from professionals who know the nuances of dental-specific leases. This is not something to hand off to a general commercial broker or a friend who dabbled in real estate once.
3. Plan for departure early
If you want leverage in your next negotiation—or freedom to move on your terms—you’ll need time. Ideally, start the planning process over a year before your lease ends.
Final Thought: Don’t Let the Lease Undermine the Dream
You’ve worked too hard to let fine print sabotage your future. Protect your practice. Protect your options. And most of all, protect the value of everything you’re building.
With the right guidance and preparation, you’ll be able to walk into your next phase with total confidence—lease in hand, risk under control, and your practice firmly in your hands.
—Stephen Trutter