There's more to signing a lease than negotiating rent

Contract Language. By Steven M. Harris, AMNews contributor. Aug. 6, 2001.

CONTRACT LANGUAGE

A column examining the ins and outs of contract issues

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When you are negotiating to lease a space from which you will operate your medical practice, you are probably most focused on the economic terms of the deal.

Fair enough. After all, before you proceed, and no matter how desirable the space, you need to be certain that your practice can afford the rent and other charges as well as the build-out costs that are incurred in connection with customizing the space to suit your specific needs.

After you have made a determination that the economic terms make business sense, however, do not rest on your laurels. For as long, dull (yes, we admit it) and convoluted as your lease may seem, you are making a mistake if you dismiss the seemingly noneconomic language as a bunch of legalese.

Rather, by tweaking even a few key terms, you may be able to negotiate a deal that adds additional value to the space and helps your practice prosper.

Maintenance provisions. The lease should include terms distinguishing the building systems that the landlord is responsible for maintaining from those that the tenant is responsible for maintaining.

Protect yourself from getting hit with unanticipated costs by making sure that the landlord is responsible for the big-ticket items in the building in which you lease space.

For instance, attempt to negotiate language requiring that the landlord (at the landlord's expense) shall keep, maintain in good condition, and repair and replace, if necessary, at all times, and from time to time, during the term of the lease or any extension or renewal thereof: the structural systems; the roof and foundation of the building; the exterior paint; the plumbing system; the electrical system; the heating, ventilating and air-conditioning system ("HVAC"); the utility lines and connections to the leased premises; and the sprinkler mains, if any. [...]