Space is expensive. For most companies occupancy costs rank second only to payroll. For that reason alone, companies should periodically consider having a lease audit performed. That said, there are many other advantages. Unfortunately, we live in a world rife with inefficiencies and as such nearly every lease will be billed improperly at some point. Make sure that you are only being billed for what you have agreed to pay.
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.
Although often overlooked, the commercial lease agreement defines the rights and obligations assocaited with one of a tenant's most critical expenses: occupany costs. Because of the complexity of today's leases, many times a tenant is billed improperly for their share of additional rent. A thorough audit of your lease and the rights and obligations that it defines is key to maximizing your return on assets.
Absolutely! Grant & Lewis believes that every high-performing company should have a lease audit program in place. To that end, we offer a myriad of solutions designed to assit you. That being said, there are often times when a company would be well-served by turning to a third-party for their lease audit so as to ensure that all terms of the lease are considered and treated appropriately.
There are generally three situations where a lease audit is important: Before the lease is signed, after the lease is signed, and before the annual reconciliation of expenses. In each on of these situations, a lease audit will identify any missing items, identify any difficulties in administering the lease, and ensure that all expenses being billed are in accordance with the lease.