Arm's Length Lease

Have you ever thought about buying a building, instead of paying rent to your landlord?

If the answer to this question is yes, then you are like over 80% of professionals across the nation who seriously consider buying a building instead of paying rent. Unfortunately, many of those who do decide to buy only realize after spending a lot of money and considerable time that they didn't ask all the right questions first.

If you are planning on purchasing your own building, and are going to have your practice in the same location, then you are going to want what is called an “arm's-length lease.” This type of lease will separate the two major investments (your building and your practice) with documentation that is fair to both of them.

There are numerous reasons why this is important (taxes, depreciation, salability of you practice, and rent payments) but the main reason is so that if you, in the future, ever decided to sell your building and keep your practice, or alternatively, if you decide to keep your building and sell your practice, you are properly set up to do so.