Lease Audit Services
Money you never knew was there
Lease Audit Services Success Stories
Hughes Marino Lease Audit Services has saved businesses millions of dollars since its inception. Property managers and accountants are human and make mistakes. Without a qualified, thorough, and unbiased review of the lease and operating expenses, these mistakes are going unaddressed and costing businesses billions of
dollars each year. Our process is simple and non-confrontational; in most cases the landlord is unaware the review is taking place. As highlighted below in these case studies, the savings can be significant and landlords are typically quick to acknowledge and correct the oversights.
Early Catch of Discrepancy Saves Biotech Client $340,000Capital Expenses Not Permitted in Negotiated Lease
Hughes Marino performed an audit for one of our biotechnology clients during the initial year of a 10 year lease. In reviewing the operating expenses, it became apparent that capital expenditures were being included that were not consistent with the recently negotiated lease. When brought to the landlord’s attention, they acknowledged the lease terms were not standard and provided our client with a $61,000 credit. In addition to this credit, our client will save $280,000 over the remaining lease term.
Non-Profit Refunded $25,000Cap on Operating Expense Incorrectly Applied
Hughes Marino was brought in by a not-for-profit client that wanted to ensure property taxes were correctly being charged. While we confirmed the charges for property taxes were correct, we did identify an error with how the landlord was interpreting a cap the tenant had on overall expenses. When brought to the landlord’s attention, they immediately acknowledged the mistake and provided our client with a $25,000 credit.
Software Client’s Concerns Result in $900,000 of Recovery and Future SavingsUtilities Overcharged
A long-time client of Hughes Marino came to us with concerns regarding their operating expenses, and specifically the utility charges. We determined that while the lease allowed for separately metered payments for electricity charges to the premises, they were actually paying for utility charges related to the entire building. This error in billing resulted in payments in excess of $100,000 per year. Hughes Marino, its client, and the landlord worked together towards a solution that included a credit in excess of $200,000 and the reduction of expenses for the balance of the term that will result in a total savings to our client in excess of $900,000.
Technology Company Receives $17,000 CreditError in Landlord’s Calculation
As part of our thorough review of the operating expense reconciliations, Hughes Marino uncovered a typographical error in the landlord’s statements that overstated our client’s share of operating expenses. The mistake was acknowledged and corrected by the landlord, resulting in a credit of $17,000 for our client, plus the avoidance of $15,000 in future charges.
Law Firm Saves in Excess of $200,000Base Year Determined to Be Inaccurate
Knowing the importance of an accurate base year, Hughes Marino proactively approached a client after their first year of a 10 year lease. Comparing the building’s reconciliation for the base year to the budget for year two, discrepancies were identified by Hughes Marino that caused the Base Year amount to be understated by $24,000. The error was brought to the landlord’s attention and immediately corrected. The result is a saving to our client of $24,000 for the current year. Left unidentified, the client would have continued to pay an extra $24,000 for the remaining 8 years, or over $200,000 during their lease term.