​​​LEASE AUDIT

Do you know if your landlord is charging you properly based on the terms of your lease?  Many tenants do not.  For more than three decades I've been reviewing leases on behalf of tenants.  My experience can help level the playing field and ensure you pay only what you agreed upon in your lease and no more  

An owner and their attorney negotiate the terms of a lease and at a later date a property manager employed by the owner interprets and concludes from the lease document how much money a tenant is responsible to pay the landlord.  Lease misinterpretations, oversights, math errors and errors in square footage all contribute to mistakes  resulting in tenants paying more (sometimes far more) than they had agreed to pay when they signed their lease.  

The potential for error is great.  Rental amounts, escalations, gross-ups, operating expenses, common area maintenance (CAM), real estate taxes, insurance, marketing, management fees, capital replacements vs. repairs, marketing fees, utilities, offsets, common area measurements... all can contribute to mistakes that can cost a tenant a significant amount of money.   Unless detected, a miscalculation can cost a tenant thousands and thousands of dollars over the life of a lease (depending on square footage).

Your lease needs to be audited every year.  Please call today and I can provide more detail about our services.  Utilizing these services will at the very least provide you peace of mind knowing you were billed correctly.  And it is also very possible you will realize a significant savings.    

Sample Lease Audit Issues:      Rent,  Measure Premises,  Rent Increases (CPI’s, Step-Ups, etc.),  Rent Abatements, Prorata Shares,  Multi-Tenancy Requirements,  Offsets for Taxes,  Administrative Fees,  Tenant Improvement Allowances,  Percentage Rent,  Management Fees,  Tenant Specific Charges,  Construction Costs,  Installation Costs,  Common Area Costs vs. Building Costs,  Operating Expenses, Declaration of Covenants, Conditions, & Restrictions (CC&R’s), Association Dues,  Reciprocal Easement Agreements (REA’s),  Multiple Management Companies,  Capital Costs,  Base Year Charges,  CPI Adjustments, Fixed Increases, Gross ups, Capped amounts,  Real Estate Taxes,  Building Taxes,  Land taxes,  Common area taxes,  Land area... acreage,  Due Dates,  Discounts,  Special Assessments,  Consulting Fees,  Base Year Charges,   Insurance,  General Liability,  Excess Liability, Competitive Bids, Utilities,  Water / Sewer,  Trash, HVAC,  After Hours,  Allocations Methods,  Percentage Rent - Gross Sales -  Exclusions from Gross Sales - Offsets,  Verify annual calculations vs. payments,  Construction Allowance,  Tenant Improvement Allowance,  Sub-Tenant vs. Tenant vs. Co-Tenant charges,  Shared easements or utilities or parking or security,  If rent is based on construction costs, we can audit project costs,  Common Area Maintenance (CAM) & Escalations,  

KBF Corporate Real Estate Services, Inc.   www.KBFrealestate.com   6939 North Francisco, Chicago, IL 60645  

KBF Real Estate Services, Inc.