Office space that is.
Once you make the choice to be in private practice the question of where you are going to see clients will come up sooner rather than later.
Sometimes I hear people making the choice to see clients in their homes. There are even a few tech-savvy folks choosing to develop their practices online (HIPPA compliant, please).
But for those of you wanted to build brick and mortar businesses outside of your home that are two common approaches you can take to securing a space.
Subletting and Leasing.
Curious about which one will work best for you?
Let’s take a look at each and give you a bit of insight to help guide your decision making process.
When you are just starting out in private practice and only have a few clients, it makes good sense to consider creating a subletting arrangement. Perhaps you only need an office space one day a week to start…or maybe you are willing to work days or evenings only in someone else’s office space.
Instead of being fully responsible for an entire office space, you rent a single room a few days a week. These subletting relationships are a perfect way to get started as your business is gaining traction. It doesn’t overcommit you to a long term arrangement before you are ready.
A few points to consider with subletting…
-Will you be able to add additional time as your practice grows?
-Will you have access to a secure storage space for important paperwork etc?
-Do others have access to your office space?
Subletting can potentially provide swift access to a nice office space with less risk. You can negotiate a short term lease that can easily get you started with your practice. But once your practice begins to grow…you may have to make some different choices.
Once you are ready to make the jump into having your own dedicated office space…that’s when a conversation about leases begins.
When I first rented an office space, I remember the landlord saying it was "$15 per square foot".
I had no idea what that meant. I was accustomed to hearing monthly dollar amounts when discussing rents. But this lease situation…was a different beast altogether.
PRICING… Often times, leases are priced as a dollar per square foot cost. To calculate your monthly lease amount, multiply the cost per square foot by the square footage of your space and divide that number by 12. That is a basic formula for determining your monthly lease amount.
TERM OF LEASE…Depending on the term of the lease, you will likely have annual increases in your rate as time goes on. Most landlords will prefer a longer lease term. Truthfully it provides both you and the landlord a degree of stability and security. You don’t want to be moving your practice every year or even every other year. Not only is it costly, but it can be disruptive to your clientele.
Interested in making the most of negotiating your lease with a new landlord?
Tune in next week for a few questions you need to ask.