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I'd appreciate any thoughts/feedback/comments if anyone has any on room rental arrangements.

I'm thinking of starting up on my own in rural NSW, Australia, and have found a room to rent in multidisciplinary clinic. I have been presented with two options for room rental and unsure of whether they are reasonable or not? In both cases the room comes fully set up, and includes full reception support, hicaps, software for electronic progress notes. They two options are:

1. I can rent the room for $170 a full day.

OR

2. Do a 60% / 40% split on income generated ie. I take home 60% and pay 40% in fees.

In terms of prices does this seem pretty standard for rental fees?
I personally thought $170 a day was steep for a rural area, but have nothing to reference it against.
And also is a 60/40 split a fairly usually sort of rate?

Has anyone had any experiences of their own with room rental? Or any comments or feedback? They're all welcomed!

Thanks in advance.

 

The rent is high, especially if you worked it out on a weekly equivalent, but what is more concerning is the following:

1. Full-time reception support - does this mean they also make your appointments, or do you do this yourself. If they make them for you, it will mean you will only get the left over patients...the ones not booked with the GP and Physio. You will also need to take into account they know nothing about podiatry, so you'll need to train them...but will they want to learn?

2. Software for progress notes: It sounds like you do not own the notes, or have access to the patients database to use for your own marketing purposes, which will be a hinderance long-term if you're expecting to grow the business. A patient database is gold, and if you don't own it, you don't really have a business.

If you're serious about doing this, I would suggest you put the following idea to them: You'll pay a 60:40 Split, or $170 per day - whichever is the lesser. Therefore you're capping your rent at $170 and no more, which is important if you end up being very busy, but if you have a slow beginning, which you may, you'll only be paying 40%.

There's a lot more I could suggest, but you're probably going to get a lot of other advice that you'll need to consider.

I hope this helps

Tyson E. Franklin

 

Thanks for your response Tyson.

I hadn't considered the long term impact of not owning the progress notes. So that's been very helpful feedback. And something in which I need to consider further.

Also, I agree with you entirely about the potential problems with the current reception structure/support.

Thank you for your thoughts, they're greatly appreciated.

 

It can take time to build up a book of patients (I mean years). In this time $170 per week could be a crippling expense.
I would always go for a percentage split, but 70-30% seems more like a fair amount.