The Importance of Managing Lease Expirations for Multi-Location Dental Groups

The Importance of Managing Lease Expirations for Multi-Location Dental Groups.

Lease management is a crucial aspect of running any multi-location business efficiently.  According to a recent survey, 75% of dental groups reported that they have experienced lease compliance challenges, including missing key dates.  As they grow their footprint, their current management system of utilizing Excel spreadsheets just isn’t working anymore.  This is precisely why we’ve created Re*Lease Administration.

In this post, we'll dive into the significance of managing lease expirations in commercial real estate, the potential repercussions of missing lease expiration dates, and how our lease administration platform can be your lifeline to prevent missed opportunities on lease renewals.

Why Lease Expirations Matter:

Lease expirations are pivotal milestones in the life of any commercial real estate property, and they hold even greater significance when you're dealing with a multi-location dental group as an organization.  Here's why:

Market Conditions: Keeping track of lease expiration dates enables practices to align their real estate decisions with current market conditions.  This includes evaluating whether the current location is still in a prime area for patient accessibility and demographic suitability, or ensuring you are not paying more in rent (price per square foot) than say the nail salon next door.

Negotiation Leverage: When you are aware of upcoming lease expirations, you have the upper hand in lease renewal negotiations. You can proactively engage with landlords to negotiate better terms, including rent reductions or improvements to the space (on the landlord's dollar).  This helps ensure that you secure the most favorable terms for your organization.

Space Optimization: Being aware of lease expirations allows dental practices to assess their current space needs. This knowledge can help in optimizing the layout and size of the practice to ensure efficient use of space and resources.  Need another hygiene operatory?  More space in your break room? These are all things that can be negotiated in a lease renewal.

Operational Stability: Efficient operations are crucial in the dental industry. Overlooking a lease expiration date can trigger unanticipated changes in location or increased rental rates, creating operational challenges for the practice.  This can lead to disruption of patient care, causing inconvenience and dissatisfaction among patients and staff. Such disruptions can tarnish the reputation of your dental group, affecting patient trust and loyalty.

Financial Planning: Unexpected lease renewals or relocations can strain your financial resources, impacting your profitability. Lease expirations directly impact your financial planning. Knowing when leases are set to expire allows you to budget for potential rent increases, negotiate favorable terms for renewals, and allocate resources effectively. It prevents unexpected financial burdens that can strain your DSO's finances. 

Managing Lease Expirations with Re*Lease

To avoid these issues, using our lease administration software platform can be invaluable. Here's how we can help:

Automated Alerts: Our software can set up automated alerts for lease expiration dates, ensuring you're always aware of upcoming deadlines.  Have alerts sent straight to your email inbox, and never miss a deadline again.

Centralized Document Management: Keep all lease-related data in one central location, making it easy to access and manage all real estate documents. Store all lease documents securely and access them as needed during negotiations or audits.

Data Analysis: Leverage the software's data analysis capabilities to identify trends, helping you make informed decisions about your whole portfolio.

Task Management: Assign tasks related to lease renewals or relocations to team members, ensuring everyone is on the same page.

Reach out to learn more on how we can help your team manage your real estate portfolio, and ensure you never miss a lease expiration date again.