Year End Billing AuditAn in depth review of the charges issued by the Landlord
We believe it is in the best interest of every tenant to initiate an audit of the additional rent currently being charged for the space. Not only the common area cost, but the property tax allocations and any other significant contributions (eg. promotion or advertisement fund payments).
It is key to have someone who understands how to decipher a Landlord’s year end billing statement, knows how to read a commercial Lease, and is able to narrow in on the important areas where leverage could be created during upcoming lease renewal negotiations.
The Year End Billing Audit includes:
Review of the Lease to confirm:
- Deadline for Landlord’s submission of year end billings
- Tenant’s rights to audit and deadline for requesting backup
- Definitions relating to Additional Rent
- Operating Cost
- Tenant’s Proportionate Share
- Admin Fee / Management Fee
- Property Taxes
- Any additional Fees applicable during the applicable Lease year
Communication with the Landlord on the Tenant’s behalf to request and obtain:
The Statement related to (i) the total amount of Operating Costs and Taxes applicable to the Shopping Centre for that particular Accounting Period, and (ii) the Tenant’s Share of Taxes and its Proportionate Share of Operating Costs which are payable by the Tenant for such Accounting Period
Any applicable documentation relevant to the statement
Report to Tenant to including:
- Any discrepancies found upon review of the statements and backup
- Summary of Lease review highlighting areas for negotiation with Landlord
How we calculate our fee:
An initial review fee of $25.00 is charged.
30% of savings found for current year end billings plus 10% for each year of the extension (as the savings found by the audit will produce savings for the Tenant in the future.)
We can handle the paperwork! Let our team of experts manage the review of the Lease drafted by the Landlord and facilitate the communications to negotiate the Offer and finalize the lease. These…