Commercial leases are one of the most significant corporate expenses. Up to 70% of the cost of a lease can represent the tenant’s obligation to share in building operating costs, taxes and utilities. Since the leases and charges for such costs are so complex, it is very common for landlord bills to be incorrect. Because tenants must identify such errors and bring them to the landlord’s attention, but typically lack the time or resources to do so, they simply pay their bills as rendered. This leads to overpayments that can recur year after year, growing in magnitude.
What is a Lease Audit?
A lease audit is a comprehensive analysis of lease terms and validation of charges to ensure that amounts billed are correct. It involves a disciplined review of lease documents, invoices and various other materials. It can also include a review of the property manager’s books and records as well as public records and other data.