Examples of the types of landlord overcharges that may exist:

• Inclusion of expenses not permitted in your lease escalation costs
• Double billing of costs
• Related-party transaction costs
• Excessive above market management fees
• Overstated gross–up calculations
• Accelerated annual amortization and depreciation expense periods
• Capital expenditures passed along as ordinary repairs and maintenance costs
• Mathematical errors and/or duplication of journal entries

Facts to Consider

• Many leases have a limited window of time in which to conduct an audit and/or object to the charges billed.
• Real Estate Brokers have a conflict of interest with landlords on whom they depend for their commissions.
• Lease clause language and their actual application to the billing of escalation charges such as Operating Expense Costs, CPI, and Porter Wage are quite unique.
• In-house staff have other responsibilities and cannot afford the time to devote to intense analysis.
• Many attorneys who write the lease clauses do not have the experience in the review and auditing of the actual accounting methods and specialized calculations utilized by the landlord.