What are the benefits of leasing versus buying premises for my practice?

Deciding Between Leasing and Buying: What Works Best for Your Practice?

As a GP considering a move into private practice, choosing the right premises is a significant decision. Whether you're looking to lease or buy, it's important to weigh the benefits to find what aligns best with your financial goals and practice needs. Let’s explore the pros and cons of leasing versus buying.

Flexibility vs. Stability

Leasing premises often provides greater flexibility. It allows you to relocate or expand more easily as your practice evolves. You’re not tied down to one permanent location, which can be a blessing if your patient demographic or practice needs change over time.

Buying your premises, on the other hand, offers stability. You have the autonomy to modify and personalise the space exactly to your liking without needing landlord approval. Plus, any improvements you make could enhance the value of the property should you choose to sell later.

Financial Considerations

Financially, leasing might require lower initial costs. You don't need a hefty deposit or to take on a mortgage, making it easier to get started. This can be particularly appealing if you're looking to invest more into the business itself or need to keep your finances liquid.

However, buying a property can be financially advantageous over time. Mortgage payments may eventually become lower than rental payments, and you build equity in the property. Plus, you could potentially benefit from property appreciation in a thriving market.

"When I first started my practice, leasing allowed me to invest in top-tier medical equipment rather than sink funds into a mortgage. Later, purchasing premises helped create a more personalised and stable environment for my staff and patients." - Dr. Reena Patel, Private GP

Operational Control

If you lease, you're likely bound by the landlord's rules. This could limit changes or enhancements you'd like to make, but also might mean fewer responsibilities for maintenance and repair costs.

By owning your practice premises, you're fully in control. Your decisions about structures, interiors, or even patient flow adjustments aren't limited by lease conditions. This control can significantly aid in creating the bespoke experience you want for your patients.

Tech and Integration

Regardless of leasing or buying, make sure your practice is well-equipped with efficient healthcare technology. Platforms like EMIS Web and Hero Health offer robust solutions for electronic records and patient engagement. These platforms integrate seamlessly whether you're renting or owning, providing consistent patient care and communication.

Ultimately, the decision to lease or buy should be helped by consultations with financial advisors tailored to private general practice. Understanding your unique situation will lead you to a decision that benefits your practice and your patients.