The Hidden Costs in Dental Leases

When most business owners sign a lease, they focus on the obvious terms: monthly rent, square footage, and length of the agreement. But what really impacts your bottom line are the hidden costs buried deep in the fine print. For dentists and franchise owners, these costs can add up to tens of thousands of dollars over the life of the lease.

At R/A/Z Law Group, we regularly review and negotiate leases for clients, and here are some of the most common “surprises” we uncover:

1. CAM Charges (Common Area Maintenance Fees)

Landlords often pass along maintenance costs for things like landscaping, parking lot repairs, or building upkeep. While that may sound reasonable, poorly defined CAM provisions can leave you paying for upgrades or expenses that have nothing to do with your business.

2. Personal Guarantees

Many leases include a personal guarantee, making you personally responsible for rent if your business struggles. Without negotiation, this could put your home or personal assets at risk. There are ways to limit or remove these guarantees, but they must be addressed before signing.

3. “Free Rent” That Isn’t Free

Some landlords offer a few months of “free rent” during your build-out period. What they don’t tell you is that this cost is often baked back into the lease, either through inflated rent later or hidden fees. Reviewing the math behind the offer is crucial.

4. Relocation Clauses

Buried in some leases is the landlord’s right to relocate your business within the property. For a dental practice or franchise, moving locations can mean losing patients or violating brand standards. This is one clause that deserves careful attention.

5. Build-Out and Restoration Requirements

Dental practices and franchise spaces often need extensive customization. Many leases require you to return the space to its original condition when you leave, which can cost tens of thousands in demolition and repair. Negotiating these obligations upfront can save you significantly later.

What looks like a “good deal” on paper may actually be one of the costliest decisions your business makes. A careful legal review ensures you know exactly what you’re signing and protects you from financial surprises down the road.

If you’re considering a new lease, we'd love to talk. At R/A/Z Law Group, we help healthcare professionals and small business owners negotiate leases that make sense today and protect their future growth.