Pros & Cons Doctors Should Consider When Deciding To Buy or Rent Office Space

Space for Growth: Weighing the Options of Renting vs. Buying in Healthcare Practice Real Estate

Written by: Aaron Michael Buch

Doctors who are starting, moving or expanding into a new location may be faced with the decision of whether to rent or buy office space. There are pros and cons to both options, and the best choice will depend on the specific needs and circumstances of the practice. There are both pros and cons to consider when deciding whether to rent or buy office space for a medical practice.

Pros of renting office space:

1. Flexibility: Renting office space allows you to have the flexibility to move to a different location if your practice grows or if you need to be closer to a specific patient demographic.

2. Cost: Renting office space can be less expensive than buying, especially if you’re just starting out and don’t have a lot of capital to invest.

3. Maintenance: When you rent office space, the landlord is typically responsible for maintaining the building and making any necessary repairs. This can be a major advantage, as maintaining a building can be costly and time-consuming.

Cons of renting office space:

1. Lack of control: When you rent office space, you don’t have control over changes to the property or building. This can be frustrating if you want to make renovations or improvements to the space.

2. Limited tax benefits: When you rent office space, you don’t have the same tax benefits as you would if you owned the property.

Pros of buying office space:

1. Equity: When you buy office space, you build equity in the property. This can be a good investment if you plan to stay in the same location for a long time.

2. Tax benefits: When you own office space, you can take advantage of tax deductions for mortgage interest and property taxes.

3. Control: When you own office space, you have control over renovations and improvements to the property.

Cons of buying office space:

1. Cost: Buying office space can be more expensive than renting, especially if you need to take out a mortgage.

2. Maintenance: As the owner of the property, you are responsible for maintaining the building and making any necessary repairs. This can be costly and time-consuming.

3. Lack of flexibility: Once you buy office space, you are committed to that location. This can be a disadvantage if your practice grows and you need to move to a different location.

Ultimately, whether you choose to rent or buy office space will depend on your specific needs and circumstances. It’s important to carefully weigh the pros and cons of both options before making a decision.