National Lease Advisors recently saved a client $75,000 by identifying errors in a 2019 reconciliation during a lease audit. During the review of the landlord’s calculations, we flagged capital costs for further investigation. In reviewing the lease document, we determined that the amortization of capital expenses was permitted, but with limitations. The NLA team then reached out to the landlord on behalf of the client and requested back-up for the charges.
Upon receipt and review, we quickly determined that the majority of the expenses being amortized were not permitted under the lease. We presented and discussed our findings with the landlord’s accountant, who acknowledged their oversight and updated the reconciliation. The immediate savings was $25,000, and with three years remaining on the term, our client will save over $75,000!