Financial strain and hardship are common stressors in the veterinary profession. If you’re a practice owner considering selling your property or wanting to better understand the value of your health care real estate, Rahul Chhajed of Matthews Real Estate has some great tips.
Rahul is the leader of Matthews Health Care division, where he primarily focuses on veterinary spaces. We discuss a big piece of real estate: property value. In a healthcare space, value is based on location, land, the physical building, income, and lease terms.
We discuss lease terms a lot in this episode, so you’ll want to listen closely. Here are some takeaways to keep in mind.
- Triple Net Lease – this is where the practice owner is responsible for management, taxes, and insurance. Giving the landlord the most passive form of income.
- High level lease terms – securing a lease with as long lease as possible (10 years minimum), high rental rate as possible, and rental increases inline with market
- Corporate Guarantee – where all income is guaranteed and the asset is as safe as possible.
When it comes to real estate and healthcare, the information is extremely nuanced. Rahul drives home that it is important to have understanding and knowledge. Advisors like him are there to give you trusted guidance, even if you’re not ready to sell or buy yet!
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- Why is understanding real estate important for vet practice owners?
- How to maximize the value of a healthcare space?
- What is a triple net lease?
- What is a corporate guarantee?
- Why are safe assets and guaranteed income important for potential buyers?
- The value of a trusted real estate advisor.