National Lease Advisors reviews all operating expense reconciliations and budgets provided by landlords for our lease administration clients and consistently identify errors. NLA recently recovered a law firm client $100,000 by identifying errors in a 2021 reconciliation during a lease audit.
During the review of the landlord’s calculations, we flagged a significant year-over-year increase in repairs and maintenance. We reached out to the landlord to inquire on the reasoning for the increase. We discovered the the landlord improperly included $184,000 in roof work in the R&M category. The lease defined the repair as a capital expense that was to be amortized over its useful life. NLA reached out to the landlord and the landlord agreed to capitalize the repair over its 20 year useful life. This resulted in savings of $100,000 for our client.