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Lease Audits Reduce Operating Costs
Date:3/8/2010

International Tenant Representative Alliance provides real estate services to corporate tenants and users of commercial real estate.

(PRWEB) March 8, 2010 -- According to the International Tenant Representative Alliance (ITRA), whose members specialize in tenant representation, most commercial tenants have received 2009 expense reconciliation statements of operating expenses and taxes from their landlords. Typically, tenants have 30-60 days after receiving these statements to give notice to the landlord if they wish to perform an audit. If a company is leasing office space, industrial space, warehouse or other commercial real estate, now is the time to determine if the landlord is over-charging for expenses by performing a lease audit.

For many commercial real estate tenants, rent is the second largest operating expense after personnel costs. Auditing the landlord’s expenses provides confidence that these costs are being properly billed. Not all tenants need to audit lease expenses annually, but here are a few examples of situations that could trigger an audit::

1.    If a gross-lease was executed in 2009, the tenant will have only one opportunity to audit the base year (2009) expenses. If a tenant waives this right, they may be overbilled for all ensuing years due to a landlord understating the base year expenses. E
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