Lease Administration Services
Money-Saving Advice for Tenants From Our PLA Team
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Lease Administration Best Practices for Businesses
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It is truly remarkable, and just a bit worrisome, how many people use Microsoft Excel to keep track of their real estate lease information. While it works well if you are only tracking a few key dates and terms for one or two leases, if you have six or more locations, Microsoft Excel is definitely…
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Changes are ahead in the reporting of real estate leasing costs on financial statements, and corporations are scrambling to meet the upcoming deadline. During the process of conforming to the new standards, these companies are also discovering this is an opportunity to transform their business with improved systems and processes that can result in cost reductions and better efficiencies.
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The Financial Accounting Standards Board (FASB) recently issued an update (ASC 842) that will require businesses to rethink how they structure real estate leases going forward. The code change, which will be implemented in 2019 (2020 for private companies), requires companies to put the capitalized value of their lease obligations on the balance sheet as a liability and asset (“Lease…
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Landlords would prefer to keep you in the dark – which is why our team at Hughes Marino collectively spends tens of thousands of hours advocating for the rights of our tenants during lease negotiations. But what about after everything is said and done and the lease is signed – how can you be sure your landlord isn’t billing you…
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Every year at this time, usually between March and June, landlords throughout the land present their tenants with the prior year’s Operating Expense Reconciliation. And while they take months to prepare these statements, the last thing they want is for the business owners and executives who receive them to spend time reviewing this all-important document. So what exactly is this…
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As today’s business leaders strive to stay ahead of the competition and grow their bottom line, the last thing they have is spare time to spend worrying about real estate lease obligations. This includes the burden that may be put on a finance department or a facilities team whose efforts are better utilized focusing on the work environment.
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When tenants enter into a lease, in addition to the base rent, they typically are required to pay for their share of building operating expenses. This is true whether your lease is structured as “full service,” “modified gross,” or “triple net.” The intent is that these expense charges will increase at an inflationary rate over the lease period. Unfortunately, the…
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The term “audit” carries many negative connotations. From the burden of a corporate audit to the unknowns of a tax audit, everyone wants to steer clear of an “audit.” Because of this, many businesses avoid entertaining the process of a lease audit, and are potentially leaving millions of dollars on the table by allowing their landlords to charge them expenses…
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You probably don’t give your monthly office rent statement much thought. After all, they should simply reflect the rent due under your lease, so common sense says you have better ways to spend your time than analyzing them down to the last detail. However, January is the month when landlords typically update their tenants’ share of operating expenses for the…
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At some point during your lease term, it is inevitable that your landlord will send a request asking you to execute an estoppel certificate. For most tenants, the request for an estoppel comes as a surprise as it is a legal document and the landlord is likely asking for a turnaround of 10 days. So what is an estoppel certificate?…
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For the past four years, the Financial Accounting Standards Board (FASB) has been working to change the way tenants and owners of commercial real estate report their lease transactions on financial statements. It now appears we are in the final stretch, and significant changes are coming soon that will have a big impact on the bottom line for many companies.
