In this episode of the Dental Business Guide podcast, we take a look at the differences between leasehold and freehold properties and which one is better for a dental practice.
I often get the question should I get a leasehold or a freehold for a new start up practice? Whilst getting a freehold is something that many want, it’s not always the best premises to get.
Location, Location, Location.
In my experience, location is the fundamental point when doing a start-up. If a freehold is available, ask yourself, why is it available in the first place?
Is it because the current owner cannot rent it out, as its not in a great position or location? Or is it in a bad state of repair that needs much work to make it habitable.
Of course, a freehold in a strong location usually features a higher price tag, but sometimes you can get a good deal, but it’s rare, even in these times.
You Get What You Pay For
My experience has taught me that cheap rent, or a cheap freehold, usually means it is not going to be in a strong enough location to get the new patient visibility you desire – ultimately, you do get what you pay for.
Whilst it may be tempting to get some premises for a squat, especially as there are so many empty units at the moment, do your research and make sure you choose a strong location – with high visibility.
Do Your Research
Strong locations in town centres still command good rents. Yes, they may have dropped, but going in with a ridiculously low offer for a premium space may be tempting, but it’s likely to be ignored promptly too.
Do your research properly, see who are the other occupiers, what terms can you realistically negotiate, are you in competition with others?
Experience has taught me that location is paramount when doing a start-up. Get this wrong and you will be facing an uphill battle from day one.
Don’t make the same mistake that many have made in the past!
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