Tenants often think that the only risk of deferring an audit of their lease this year is that they may be unable to recover any of this year’s overcharges. In fact, skipping a year of reviewing your charges can have a profound impact on your costs for the balance of your lease term. Here’s why.
Accepting billing practices may create a presumption that such practices are acceptable. Landlords will often argue that a tenant had an adequate chance to review their charges and object, and by deciding not to do so, …

Tags: KBA Lease, lease audit, Lease Tip, Overcharges

At the beginning of each year, landlords reconcile their buildings’ actual expenses with the amounts contributed by their tenants during the prior year. They then issue adjusting statements that settle each tenant’s liability and establish the new estimates for the current year.

Although landlords are obligated to follow the leases when issuing these statements, tenants have the burden of identifying errors and bringing them to their landlords’ attention. If there is anything wrong with these end-of-year statements, and no objection is raised, the statements are deemed correct and errors can become …

Tags: Errors, KBA Lease, lease audit, Reconciliation