Therapist Survey: Subleased Office Space (Part 1)

Are you a therapist who is interested in renting office space -- or are you a therapist who has space available for rent? A July 2010 survey of therapists reveals pricing and amenity details, and participating therapists give advice on making an arrangement work for you.

The survey was completed by 39 therapists. Nineteen percent of respondents have rented space from a non-therapist landlord; 38 percent have rented space from another therapist. To provide a balanced perspective, 32 percent are therapists who rent (or have rented) space to other therapists (a "landlord's view). The majority of responses (75%) came from Omaha-area therapists.

When it comes to fees, it is difficult to compare apples to apples. However, from the information supplied, a few general conclusions can be drawn.

Part-time rentals generally are in the $150 to $750 per month range. Full-time rentals most often cost $1,000+ per month. The overall average (including both part-time and full-time) rentals was $726 per month.

Most space is rented for a flat fee, although a small percentage (25%) of respondents reported their rent is a percentage of the session fee billed or collected. These figures were more consistent -- the most-often cited figure was 35% of the amount collected. Other options were 30% of the amount billed, and 1/3 of the total office rent.

There was insufficient data on hourly rental rates to draw any conclusions.

In exchange for the rent, therapists generally receive:

• Exclusive use of a private office (12%) vs. shared office space (5%)
• Administrative support (6%)
• Billing services (7%)
• Access to conference room/meeting space (8%)
• Copier/Fax (11%)
• Consumables, like office supplies (8%)
• Participation in marketing/advertising (8%)
• Telephone (11%)
• Internet access (10%)
• Checking patient insurance benefits and/or securing insurance authorizations (9%)
• Access to emergency coverage (5%)

Therapists are generally required to carry their own liability insurance when renting space. However, in some circumstances, liability/property insurance was included.

Some rental agreements offered some flexibility in services offered. One therapist reported their agreement was based on the "percent of overhead used," what supportive services were included, and whether marketing was needed.

Next post: Selecting which practice to affiliate with.