How do you use lease audits and reviews to identify and recover overcharges and errors?

1 What are lease audits and reviews?

Lease audits and reviews are processes of examining and verifying the accuracy and compliance of your lease documents and payments. They can reveal issues such as incorrect rent calculations, hidden fees, overbilling of operating expenses, incorrect allocation of common area maintenance (CAM) charges, and inaccurate measurement of rentable space. Lease audits and reviews can be conducted by yourself, by a professional lease auditor, or by a third-party service provider.

2 Why are lease audits and reviews important?

Lease audits and reviews are important because they can help you save money, avoid disputes, and protect your rights as a tenant. Lease overcharges and errors are more common than you may think, and they can add up to significant amounts over time. By conducting lease audits and reviews, you can identify and recover any overpayments, negotiate refunds or credits, and ensure that your lease terms are fair and transparent. Lease audits and reviews can also help you prevent future overcharges and errors by clarifying any ambiguities, resolving any discrepancies, and enforcing any contractual obligations.

3 When should you conduct lease audits and reviews?

You should conduct lease audits and reviews at various stages of your lease lifecycle, such as before signing a new lease, during the term of the lease, and at the end of the lease. Before signing a new lease, you should review the lease language, the rent structure, the operating expense provisions, the CAM charges, and the rentable space measurement. During the term of the lease, you should audit your monthly invoices, annual statements, and any other charges or adjustments. At the end of the lease, you should review your final invoice, your security deposit, and any other claims or liabilities.

4 How do you conduct lease audits and reviews?

Conducting lease audits and reviews requires gathering all your lease documents, invoices, statements, and supporting records. Then, compare your lease documents with your invoices and statements to look for any discrepancies, inconsistencies, or errors. Calculate your rent, operating expenses, CAM charges, and rentable space according to your lease terms and compare them with what you have paid or been charged. If you identify any overcharges or errors, document them with evidence and calculations. Contact your landlord or property manager to present your findings and requests for correction, refund, or credit. Negotiate with them to reach a mutually acceptable resolution and document the resolution. Lastly, follow up on any actions or adjustments.

5 What are the benefits of lease audits and reviews?

Lease audits and reviews can provide you with several benefits, such as saving money through overcharge recovery and reducing future payments. Furthermore, a lease audit can help you avoid disputes with your landlord or property manager and protect your rights by ensuring that your lease terms are honored. Additionally, a review of your lease can help you gain a better understanding of your lease obligations and performance, allowing you to make informed decisions for renewals or terminations.

6 What are the challenges of lease audits and reviews?

Conducting lease audits and reviews can be challenging as they require time, resources, and expertise. You may also face resistance or denial from your landlord or property manager if your findings are disputed. Additionally, if your audit leads to litigation or arbitration, there may be legal risks and costs involved. Lastly, it’s important to conduct lease audits and reviews in a timely manner and in accordance with the lease provisions to avoid missing deadlines or opportunities.