Many veterinarians make crucial mistakes when leasing property for their clinics, often because they underestimate the complexity and long-term implications of lease agreements. One of the most common pitfalls is not fully understanding all that is tied to a lease agreement. Beyond the base rent, leases for veterinary practices can and often include additional rent costs such as property taxes, insurance, maintenance, and repair costs—commonly found in triple net leases. Not being aware of these additional costs can result in significant expenses that affect the clinic’s profitability, especially if it’s an unwanted surprise (kind of like that dog that comes in smellling like they had an intimate moment with a skunk).

Another major mistake is overlooking or accepting lease terms that restrict business growth. Landlords may insert clauses that limit the ability to bring in associates, sublet, or assign the lease to a new buyer in the event of a sale. Assignment and subletting clauses are especially important for veterinary clinics, as business transitions are common to a private party or corporation. Without careful attention, veterinarians may find themselves unable to sell their practice or forced to ask for landlord approval under restrictive conditions, sometimes remaining liable for the lease even after selling the business.

Veterinarians should also be aware of maintenance and repair obligations in triple net leases. Many agreements require the tenant to maintain and repair essential systems such as HVAC, plumbing, and electrical. If these systems are in poor condition at the outset, the veterinarian could be responsible for costly repairs soon after moving in. A good agent will make sure these systems are in working order or under some sort of warranty before signing any lease.  It is critical to conduct thorough due diligence and clarify, in writing, who is responsible for specific repairs before signing the lease, negotiating any warranties at the outset (a good agent who knows what they are doing will do this).

It is always advisable to have a real estate attorney (not your neighborhood trust attorney or good buddy who does criminal litigation) review a lease before signing anything. That said, attorneys are human and they might miss things. For example, making sure that anything during the build out phase clearly spells out who pays for what, the landlord or tenant. For instance, ADA compliance interior or exterior to the space. Most often, interior is covered by the tenant but if exterior costs are high and it’s not clearly spelled out, that can cause issues as to who is responsible and the last thing a long term tenant wants is long term tension like a Pitbull facing off with their owner wanting their dog bone back. Similarly, if the space requires PG&E upgrades, it’s important to make sure that those costs and who bears them are outlined including caps on spending as well as communication on the process so that a tenant is not on the hook for an unexpected hundreds of thousands of dollars.

Other things to consider depending on location of the space: noise. A lease contract done in a city highrise or commercial and residential apartments might have a section whereby if any tenant above the practice complains about noise, the practice owner could face daily fines. These are things that a broker with experience in veterinary specific leasing should be able to call out (again, along with an attorney).

To avoid these mistakes, veterinarians should engage an experienced veterinary lease broker in tandem with a real estate attorney to review and negotiate terms, ensuring full transparency on all costs, fair assignment and subletting rights, and balanced responsibilities for maintenance and repairs. By carefully scrutinizing lease agreements and not rushing into signing, veterinarians can set their clinics up for long-term success and operational security.