National Lease Advisors reviews all operating expense reconciliations and budgets provided by landlords for our lease administration clients and consistently identify errors. In this instance, NLA found an error in the landlord’s billing of real estate taxes that had been occurring for years prior to us starting to work with the client.
The agreement was a sublease with an expense stop for real estate taxes. The expense stop was $40,000 per year, while taxes were approximately $60,000. The landlord had been billing the entire $55,000 to the client since the lease start. When the current years invoice came in, we noticed the error and confirmed with our client’s accounting team that the incorrect amount was paid since the sublease start. We shared our findings with the landlord who agreed with the billing error and credited our client over $50,000 from the previous years overpayments.