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The Complete Lease Audit The Complete Lease Audit A complete lease audit is designed to examine the lease, its amendments, addenda and assure that all pass throughs including base rent and rent increases, operating expenses, property taxes and utilities are being administered according to the lease. The RBJ Lease Audit includes the preparation of a lease abstract, complete review of the financial aspects of the lease, analysis and computer model/spreadsheet preparation, and negotiations with the landlord. Another option is the "Desktop Audit" where a preliminary review of the lease and invoices is made to identify possible concerns. Desktops audits are a quick and efficient method for identifying the problem leases in large portfolios. An "Extended Lease Audit" starts with a Lease Audit, but revisits the lease each subsequent year to assure that errors caught in the Lease Audit are not repeated and that new errors are corrected right away. | ||||
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Property Tax and Special Assessment Audit Property Tax and Special Assessment Audit Performed independently or as part of a complete lease audit. Review all aspects of property tax pass throughs including apportionment of property taxes by building/improvement tax, common area/land tax and by assessor's parcel. For retail space, we review each assessor's parcel in the center to make sure a fair apportionment has been used in allocating the assessed value among the assessor's parcels within the center. Research property tax appeals and supplemental bills to identify after-the-fact adjustments to property taxes that could have adversely affected you. Research special assessments, special taxes and other special assessments such as Mello-Roos to assure that only appropriate taxes are being passed through and that they are being apportioned correctly and pursuant to the rate and method of apportionment of the applicable underlying Special Assessment District. | ||||
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Lease Clause Analysis Lease Clause Analysis A review of the financial aspects of your lease during negotiations designed to highlight onerous language, unfair calculation methods, or the lack of landlord responsibilities in a lease. Clauses reviewed include base rent escalation language, operating expense pass through language, property tax, proportionate share, base year and expense stops, audit rights, landlord default, etc. Suggested alternative language is provided. | ||||
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Lease Financial Feasibility Analysis Lease Financial Feasibility Analysis Calculate the costs of leases including base rent, rent escalations, operating costs, etc. based on lease language, industry and local trends. Preparation of proforma and dynamic cash flow models that incorporate various financial indicators, including after-tax internal rates of returns, net present values, lease versus buy decisions, cash-on-cash ratios, etc. Feasibility determinations are further scrutinized by sensitivity analyses which analyze various assumptions of input variables (i.e. lease rates, term of lease, interest rates, discount rates, debt/equity ratios, etc.). These feasibility analyses are critical to informed decision making. | ||||
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Lease Management/Property Tax Management Lease Management/Property Tax Management Administer your lease portfolio, including lease abstracting, monitoring renewal, expansion and other timing issues, review lease compliance and financial issues such as expense pass throughs, rent increases, property taxes and special assessments. Where necessary, RBJ will audit questionable past and current expense pass throughs to assure correct billings. RBJ can also manage only the property tax aspects of your leases which would include reviewing all property tax levies whether directly billed to you by County Assessor or billed to you by the landlord. If directly billed or parcelized, RBJ can annually determine whether a tax appeal is warranted and whether assessed values allocated to your direct bill are apportioned correctly. | ||||
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Space Measurement Space Measurement RBJ strongly recommends measuring all lease space prior to move in to assure the proper leasable and rentable square footage. These numbers directly affect base rent and pro rata share upon which are based all operating expense pass throughs. However, RBJ provides space measurement at any point in a lease, as well as in conjunction with a lease audit. | ||||
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Lease Abstracting Lease Abstracting Comprehensive lease abstracts including all amendments and letter agreements that affect the original lease to give you easy access to vital terms of the lease including option dates, rent increase dates, pro rata shares, obligation to provide services, etc. | ||||
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Training and Seminars Training and Seminars Improve your in-house lease administration through training in areas such as lease auditing, must-have and must-avoid lease language, retail leasing, office leasing and other areas of special concern to your firm. | ||||
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