Succumbing to Landlord Pressure to Limit Lease Audit Rights

Landlords don’t like lease audits and push very hard during lease negotiations to restrict tenants’ ability to audit their leases. Many tenants succumb to this pressure, without realizing that that these restrictions often undermine all of the protections that were negotiated into the operating expense escalation provisions. This article examines some of the arguments landlords commonly make with respect to restrictions on audit rights.

Checklist for Negotiating a Fair Lease Audit Provision

Landlords and tenants often argue over lease audit rights in leases. Landlords seek to restrict the tenants’ right to audit by imposing restrictions on an otherwise open right. Tenants seek to ensure that they have a practical, workable clause that will enable them to verify their costs. Michael E. Meyer, Esq., one of the country’s leading leasing attorneys and partner at DLA Piper LLP (US), has developed this checklist of issues that should be covered in a well-negotiated lease audit clause.

6 Reasons to Check Your Lease’s Operating Expense Bill

Landlords are devoting more time and professional resources to increase revenue. As evidence of this, landlord-oriented articles are appearing in various publications suggesting how to uncover hidden income from tenants through greater attention to tenant pass-throughs. Now more than ever, tenants should be reviewing their leases and bills to make sure they do not contain overcharges or errors. Here are 6 reasons why tenants should increase their vigilance with respect to operating expenses and other pass-through charges.