Last month we posted our project planning checklist and we thought we’d follow up with some commentary regarding the property selection process. In particular renting vs buying and once you have selected a location, understanding local planning rules.
Rent vs Buying
Our first statement regarding this question is, firstly look to secure a property that will make your practice a sustainable business. This means finding the right location for your practice and this may mean you rent in a location rather than buy for the sake of buying. Property ownership, however, does have its benefits and we will cover this at a later date.
Renting commercial premises can be a fairly straight forward process and you could secure a great location for a long lease. A good start is discussing the matter with your solicitor or property advocate. Regarding renting, our main tip is don’t be afraid of a long lease, a landlord should always be open to a lower rent if they know you are in for the long term. You can always sublet the space if you do end up buying and familiarise yourself with the Retail Leases Act as the obligations of the owner and yourself will be covered by this.
If you decide that buying is the next logical step and you think a residential property for conversion is the right course of action, this is where the “converting a home to consulting rooms” journey begins.
Once again, refer back to our project planning checklist and sit down and start planning the size of premises you need before you start the property search. Understanding the location and size of the property will have a big bearing on your budget.
Before you commit to buying any property it also worth checking the local planning laws.
Planning Rules/Property Zoning.
Most planning schemes will allow the establishment of consulting rooms in a Residential zone and consider the use to be approved “as of right”, however, Council will need to see a planning application consisting of a report and plans to ensure that your plans meet local requirements such as carparking, trading hours (essentially matters that may impact the neighbours and local community)
There will be a section of the planning scheme that sets out car parking requirements and usually there is a ratio of 4 spaces per full time medical practitioner. This could be varied once you discuss with Council and may require the expert input of a traffic engineer.
A good first step here will be to visit council. Ask to see one of the planning officers and they should point you in the right direction. Be patient, council staff are generally very busy and are always dealing with sometimes annoying trivial matters that occur in any community.
It usually helps mention to the council officer that you are in the early stages of planning a project and that you plan to engage a team of consultants to act on your behalf e.g. a planner, architect or project manager. We find that this allows the council officer to feel comfortable in the knowledge that they will receive a well-conceived and thoroughly researched planning application. Do not assume an application is a certain approval, however, early discussions with Council and a good team should give you the right start.
Understanding the planning requirements will also allow you to select the right property. There is no use in securing a property at auction only to find that it can’t be converted to what you need.
For more info. Refer to our project checklist.
Regarding Leasing matters the Victorian Small Business Commissioner website has some good info.
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