With organizations looking to cut additional costs and curtail seemingly unwanted operating expenses, lease audit is gaining a lot of popularity as a tool that helps them accomplish this goal from the real estate perspective. In our blog this week we discuss why you should entrust the task of auditing your lease expenses to experts.
Lease audits involve a thorough perusal of the invoices raised by your Landlord in light of your lease agreement to determine if you actually owe those charges and if yes, then to ensure the amount you are being invoiced for is accurate. You will be essentially challenging your Landlord based on the information from the lease audit. Hence it is important that your lease audit is thorough and accurate. Any claims made in the lease audit also needs to be backed up with strong evidence supporting the claim. Without that, even legitimate claims may not be honored by your Landlord.
Secondly, when you reach out to your Landlord with the findings of your lease audit, you need to be tactful and also be able to negotiate effectively. The Landlord also needs to be able to trust your lease audit firm in the sense that they will keep any information regarding a settlement confidential. Landlords may hesitate to agree with lease audit findings if they fear that the audit firm may then reach out to other tenants of the Landlord in the premises offering a lease audit service. Outsourcing your lease audits to a reputed and trusted vendor who offers lease audit services will go a long way in ensuring your lease audits and consequent negotiations happen smoothly.
A poorly done lease audit can cost you your relationship with your Landlord. A trusted lease audit firm can help maintain your relationship with your Landlord better. Using the services of a professional lease auditor enhances your chances of getting your claims honored.
RE BackOffice is a strategic partner providing scalable, affordable and accurate lease abstraction, end-to-end lease administration, lease audit and accounting services to optimize your lease portfolio and related processes. Please contact us today to learn more.