Every lease is a long-term commitment that is usually not revisited unless the Landlord or Tenant has a problem. Legal interpretation is usually expensive and unavailable in a timely manner. Most leases also contain critical dates that obligate the Landlord and Tenant. In our scope of services for Lease Administration, we track these dates to ensure, from the Landlord’s perspective, that every dollar that the lease allows, such as rent increases and proper billing of extra charges like utilities, real estate taxes, and common area charges, is being collected. On the Tenant’s behalf, we make sure that payments are being made only for obligations set forth in the lease.
Operating Cost Audits
This service is an extension of Lease Administration and Asset Management performed in much greater detail. We usually are hired for this service by the Tenant. Pass-through expenses, such as common area charges, real estate taxes, insurance, and utilities, can represent 10% to 40% of your total occupancy cost, and the Landlord may occasionally use these income categories as profit centers. We closely analyze your lease along with periodic billings from the Landlord and compare them to the benchmark set for these services in the particular market. Even if your lease is set up as gross rent, we look at the overall property to see if it is properly managed. Often tenants are motivated to move as a result of lower rent or more space within the same market rather than moving due to poor maintenance conditions in the spaces they previously occupied.