The longer the lease that you have for your practice premises, the more likely you will have to handle regular rent reviews. Landlords, though likely happy with a long-term tenant, will not want their income to depreciate. Dental leases, like all commercial leases, are likely to include a rent review clause. What with recent inflation and rising practice costs, being tied into an escalating rent could be difficult for you, so you need to understand the rent review provisions in your lease and make sure that reviews are done fairly. Understanding the review terms in your contract and the local rental market puts you in a strong position to negotiate a favourable rent.
In some leases it is predetermined - your rent may go up in set increments, for example every three to five years. This type of stepped rent review sets up front what you are going to have to pay so has clarity but doesn't reflect how your business or the general economy is performing. Sometimes incremental clauses may address this by linking the rent to inflation or to your turnover, perhaps upping (though never reducing) your rent annually. However, in most commercial premises rent reviews operate on what is called an open-market basis.
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