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Tenant Services

Our Lease Auditing Expertise

Helping you access the cost of every square foot

The main objective of our work is to verify the accuracy of the charges billed by your landlord and thus potentially reduce our clients' operating costs. In order to accomplish this objective, we perform a complete review of your lease.

We offer over thirty-five years of commercial real estate experience in lease analysis, lease interpretation, and extensive escalation accounting expertise.

We analyze your lease clause language so that we can determine what and how your landlord is entitled to bill based on your individual lease terms.

Our clients' rent and additional rent charges are thoroughly audited and reviewed for accuracy by an experienced professional.

Types of Landlord Overcharges

Examples of the types of landlord overcharges that may exist are as follows:

Inclusion of expenses not permitted in your lease escalation costs.
Inclusion of expenses not permitted in your lease escalation costs.
Double billing of costs.
Double billing of costs.
Related party transaction costs.
Related party transaction costs.
Excessive above-market management fees.
Excessive above-market management fees.
Overstated gross-up calculations.
Overstated gross-up calculations.
Accelerated annual amortization and depreciation expense periods.
Accelerated annual amortization and depreciation expense periods.
Capital expenditures are passed along as ordinary repairs and maintenance costs.
Capital expenditures are passed along as ordinary repairs and maintenance costs.
Mathematical errors and/or duplication of journal entries.
Mathematical errors and/or duplication of journal entries.

Facts to Consider

  • Many leases have a limited window of time in which to conduct an audit and/or object to the charges billed.
  • CPA firms do not have the in-depth industry experience in commercial real estate leases, as they specialize in public accounting.
  • Lease clause language and their actual application to the billing of escalation charges, such as Operating Expense Costs, CPI, and Porter Wage, are quite unique.
  • In-house staff have other responsibilities and can not afford the time devoted to intense analysis.
  • Many attorneys who write the lease clauses do not have the experience in the review and auditing of the actual accounting methods and specialized calculations utilized by the landlord.
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Conclusion

Our clients receive a quality audit of their lease charges and verification of the accuracy of their escalation payments.

No matter the square foot or the square mile, we make your payments make sense.

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Landlord Services

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