During the first and second quarters of the year, many tenants receive their operating expense, tax, porters’ wage and other pass-through charges for their leases.
Unfortunately, although landlords are obligated to follow the leases when issuing these bills, it is the TENANT’S RESPONSIBILITY to identify errors and bring them to their landlords’ attention. To make matters worse, the leases often have limited windows (some as short as 10 days) to object to an overcharge.*
As a result, if the tenant fails to identify an error and unknowingly pays the bill without objection, the overpayment can become unrecoverable.
Tips to help limit exposure:
Remember, most commercial tenants unnecessarily miss their annual deadlines and forfeit their right to recover rent overpayments.
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Grossing Up Operating Expenses in Commercial LeasesYour Landlord’s CPA Certification is Not EnoughFailing to Audit Last Year’s Expenses Can Cost You Years of Rent Overcharges6 Reasons to Check Your Lease’s Operating Expense Bill
How can the timing of my lease audit affect the results?Do I have the right to audit my lease?What can be wrong with my bills?How will auditing my lease affect my relationship with my landlord?
