6 Essential Tips to Consider While Purchasing or Renting Medical Estates
Owning a medical estate can be a great investment opportunity. The United States healthcare expenditure will reach $6.2 trillion by 2028. No wonder so many investors and practitioners are looking to purchase a medical estate in the US. Though medical real estate offers a promising return on your bucks, finding the right medical estate can be a little tricky. You can always take help from medical real estate brokers to get a wide range of estates in your desired area. Before purchasing any medical property, you have to be vigilant about various things. Therefore, you should consider six essential tips while buying or renting the medical estate.
- Go for Class A Estates
Gone are the days when the hospitals used to be dull, white buildings. Modern healthcare institutes are visually pleasing and designed to give the patients comfort. That is why you should go for Class A medical properties. When you plan to spend your money on something, you only want the best you can get. The same goes for the medical estate. Class A properties are built aesthetically, keeping functionality and appearances in mind. They are newly constructed and are made with modern architectural practices.
When you go for Class A properties, it’s also good to consider your options. Class B properties are also well built, neatly designed, and visually appealing, and multiple tenants usually share them. On top of that, Class B properties are also more affordable than Class A properties. If your budget permits, go with Class A, but choosing a Class B property would be your best bet if that isn’t the case.
2. Be Wary of the Occupancy Cost
Commercial property purchase isn’t a one-time cost. There are numerous costs related to buying or leasing a medical property. Consider yourself as a tenant leasing a medical property. A tenant has to pay the rent, maintenance charges, utility charges, property taxes, interior charges, and other costs for buying or renting a property.
Remember to consider these costs into your budget. These costs might seem meager at first, but when they come regularly, they can add a lot of financial pressure on your budget.
3. Owning vs. Leasing: Know What to Choose
If you find yourself in a dilemma of whether you should buy or rent a property, consider the following things. Both things come with their pros and cons. If you rent a property, you don’t have to deal with the risks of market crashes or property disputes. You can easily switch places according to your convenience. You don’t have to deal with the consequences of owning the property. You also don’t have to pay the hefty upfront amount for buying the property. You also don’t have to pay the property ownership taxes.
Owning a property has its perks too. You don’t have to deal with the monthly maintenance and other costs associated with the property. You also don’t have to worry about annually increasing rents that can put an additional burden on your budget. All in all, the decision to buy or rent a property is solely dependent on your requirements. If purchasing a property makes sense for you, you should go with it, or you can always rent a medical property. You can decide by seeing different rental and ownership properties within your budget with the help of medical real estate brokers. You can select what’s best for you.
4. Distance from the Major Hospitals
It wouldn’t make sense to start your medical practice far away from the major hospitals, and the medical property should be close to your city’s major hospitals and healthcare institutes. That way, you can ensure the maximum footfall of the customers and increase your profitability.
It’s also crucial to understand whether you buy or rent a property closer to major hospitals, as they can be more expensive than other properties. Thus to make a better decision of either buying or renting, take the help of medical real estate brokers as they have experience and exemplary professionalism and can guide you easily.
5. Technological Infrastructure
Regardless of what property you choose, it should be equipped with state-of-the-art equipment to ensure ease of operations. You shouldn’t have to worry about installing internet cables, oxygen lines, reliable power backups, a secure network, and security personnel. The property should be equipped with all these necessary amenities before renting or buying it.
6. Types of Medical Property
The type of medical property you should buy or rent entirely depends on your medical practice. The price, rent, and maintenance depend on whether you plan to start a full-fledged medical center or a dentist’s clinic. Before you choose any property, you should know your options. Following are a few of the types of medical properties you should know:
- Hospital campus
- Healthcare offices/headquarters
- Retail medical facilities
- Medical stores
Medical properties are known to offer higher returns on your bucks. Make sure you buy the right property that suits your needs and choose the best real estate brokers to help you find the best medical property in town.
