What is Tenant Improvement (TI) Money?

Tenant Improvement money, or TI money, is funding that landlords provide to help build or renovate a dental office within their property. This money is used for essential fixed areas like flooring, electrical work, plumbing, walls, and painting. TI money is critical for new dental entrepreneurs because it can significantly reduce the upfront construction costs and help lower the amount needed for dental practice loans. Securing this funding allows dentists to invest more in equipment and operational needs while minimizing personal financial risk.

Real Examples of TI Money in Action

Over my last three dental office projects, I received $300,000, $272,000, and $465,900 in tenant improvement money, totaling over $1.37 million—an average of $345,000 per office. These funds covered construction and renovation expenses and sometimes included staged payments directly to contractors. Utilizing TI money effectively can save new dental entrepreneurs hundreds of thousands of dollars while maintaining high-quality office build-outs and maximizing return on investment for your practice.

How TI Money Reduces Your Dental Practice Loan

By applying TI money to construction costs, the required bank loan for a typical dental office project is dramatically reduced. For example, with construction and equipment costs around $850,000 and $345,000 in TI money, the loan amount drops to approximately $55,000. With a standard 10-year loan at current interest rates, monthly debt payments can be as low as $626, making your practice financially sustainable from day one. This approach ensures new dentists can open offices without overextending financially while keeping cash reserves for working capital.