How to Audit Your Commercial Lease to Avoid Hidden Costs

Hidden costs in commercial leases can quickly add up, eating into your bottom line. Conducting a thorough lease audit helps identify discrepancies and ensures you’re only paying what you owe. This guide outlines a step-by-step process to audit your lease effectively.

Steps to Audit Your Lease

1. Review the Rent Clauses: Check for correct calculations of base rent and CPI increases. Ensure there are no unexpected escalations.

2. Analyze Outgoings: Outgoings should align with the lease agreement. Verify that shared costs like utilities and maintenance are proportionate.

3. Examine Make-Good Obligations: Understand the scope of these obligations to avoid hefty costs at the end of your lease.

4. Verify Compliance with Terms: Cross-check landlord’s obligations, such as maintenance responsibilities.

5. Engage Professionals: Enlist legal or financial experts to identify hidden costs or ambiguous terms.

Common Hidden Costs to Watch For

• Undisclosed maintenance fees.

• Overcharging for utilities or shared expenses.

• Unnecessary administrative charges.

Tools for Lease Audits

• Checklists: Comprehensive lease review templates.

• Software Solutions: Apps like Properting streamline the auditing process.

Discover more on lease audits in our detailed guide.