Ready to buy or lease real estate for your practice?

One of the most important factors to consider when looking to start your optometry practice or expand your existing one is location. The right location can increase visibility, attract new patients and clients and make it easy for your existing patients or clients to reach you by public transit in city centres. For rural areas it becomes even more important to consider where you are located and the convenience of clients being able to get to you. Often, locating in town hubs where clients have to go to the grocery store, pharmacy or the bank can make a lot of sense.

Whether you are starting a new practice or have outgrown your current location, there can be benefits to both leasing and buying real estate. Consider your long-term business goals and how much space you need.

1. Leasing gives flexibility: Leasing allows you the flexibility to relocate to a new area or expand your growing business.
   
   
2. Leasing frees up your working capital: If you lease a building or space that is already equipped and set up for a practice, you can get started immediately with minimal start-up costs.
   
   
3. Leasing reduces the hassle of maintenance: Your landlord will handle all repairs and maintenance, allowing you to focus on what you do best — caring for patients and clients.
   

1. Leasing can put rules on building use: Some leases don't allow the tenant to make physical changes to the inside or outside of the building.  If the office and practice space is worn down or the exterior, is in need of paint and repairs, you'll have to count on the landlord for improvements.
   
   
2. Leasing costs can vary: Your monthly rent could increase as frequently as each year (depending on your terms), or the landlord could refuse to renew your lease if your agreement expires without a renewal option. Your landlord could also sell the building, forcing you to move. These are things you have little control over. Be sure you've reviewed your lease agreement carefully.
   
   
3. Leasing can affect your patient base: If your landlord does not renew your lease, you will be forced to relocate, which may lead to potential loss of existing patients or clients unwilling to follow you to your new location. 

1. Buying allows you more revenue streams: If you buy a large space, you can rent out parts of it to other healthcare providers, thus creating a revenue stream.
   
   
2. Buying secures your location for the future: Grow your patient base for the long-term without worrying about switching neighbourhoods due to a leasing issue.
   
   
3. Buying is an investment: Buying a building and it can turn into a valuable investment by the time you retire. There is a possibility that you can sell your building for profit, or you can lease your building out for residual income into retirement.
   
   
4. Buying gives you tax deductions: When you own the property, you can claim various tax deductions associated with the cost of running your practice. These include mortgage interest, property tax, and other items. You can also claim building depreciation.
   
   
5. Buying gives you remodelling freedom: Need to update your building or change the interior layout to fit your practice's needs? Remodeling costs can be financed as well through the Scotia^® Professional Plan, so you can equip your practice with everything you need.

1. Buying can stall your growth efforts: If you need to relocate your practice because you have outgrown your space, you can incur a lot of relocating costs or find yourself with a commercial building that may take a long time to sell or lease. If you need to sell quickly, you might have to take a loss if the market is not thriving.
   
   
2. Buying requires more due diligence: In some cases, buying a commercial building will require thorough condition inspections and environmental assessment. This can be done through an environmental inspection company and lawyer to ensure you have done your due diligence for patient safety before purchasing. These can incur additional costs and expenses.

Healthcare professionals have trusted us to help grow and manage their optometry practices because our Healthcare Specialists have decades of experience in practice financing and helping healthcare professionals like you thrive. We recognize that as your practice grows, your personal and professional financial needs will evolve too. Our tailored advice and solutions are specific to the needs of busy professionals at any stage in their career.

For more information and customized advice and solutions to help manage a successful optometry clinic, contact us today.