5 Tips for Leasing a Commercial Property to a Medical Clinic or Hospital
- Shreeja CS
- Sep 3, 2021
- 2 min read
Updated: Aug 14
Here are 5 tips to Consider while Leasing Property for Hospital or Clinic:
Proper waste management:
It is a well-known fact that medical clinics and hospitals create large amounts of bio-medical waste that can contain hazardous substances. An imperative measure on the part of a lessor is to ensure that a proper waste management system is in place at the commercial property to accommodate safe and segregated garbage disposal. This will help avoid potentially dangerous situations and the unnecessary legal outfalls, of mismanaged waste, that could follow.
Protection against radiation:
The use of X-ray machines, CT scanners, and other similar equipment create radiation. A landlord should make sure that the leasing contract clearly states that expert-certified measures are to be taken to deal with such by-products of medical procedures, thus ensuring compliance on the part of the medical institution using the premises. This can prevent any damage to the space or the individuals nearby.
Round the clock accessibility:
Very often medical practices need to provide 24/7 access. Such a practice calls for permissions to be granted by the other occupants of the area or building. Absolute clarity on these matters, in terms of the modus operandi, should be sought and mutually agreed upon with signed documentation. When a medical institution intends to run on a 24/7 basis, it is good to employ processes from the onset, that ensure the least consumption of utilities (like electricity, etc.), especially during the hours that operations are at their slowest.
A medical institution occupying the commercial space must ensure it is accessible to all people, especially those with special needs or disabilities. It is important to get a clear idea of the kind of practice a potential tenant will be running, to provide the necessary additions to the space if required.
Indemnity and insurance:
If any claims of injury or damage arise, as a result of a tenant’s patients or practice, measures must be taken within the leasing contract to safeguard the landlord from being targeted for the outcome of an event beyond his/her control. The same applies with respect to the inability of the tenant to provide services due to a failure on the part of a utility company or even due to a natural disaster. A robust insurance policy, which is vetted by good legal advisors, can help to secure both landlords and tenants in the event of an unforeseeable situation.
Think long-term:
Most medical institutions are looking to use a commercial property on a long-lease basis. Contracts should be fairly drafted to incentivize such tenants, while also making sure that the landlord is equally adhered to with respect to restoration costs and increasing rent prices. Clear procedures must be detailed regarding the end of the lease or the need for a sudden termination.
As is the case with all leasing contracts, it is best to ensure that parties on both sides of the agreement are fairly served, to avoid unpleasant situations in the future. The best way to ensure this is by seeking proper advice from legal and property leasing professionals.
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