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Showing posts with the label lease overcharges

Lease Overcharges Hide in Plain Sight on Every Rent Statement

Commercial leases rarely overcharge in one dramatic line. The extra cost arrives in small, plausible-looking pieces: a common-area maintenance reconciliation that runs a little high, an escalation applied a month early, a management fee calculated on the wrong base. Each item looks routine on its own, so it gets paid. Across a multi-year lease and multiple locations, those small pieces compound into a serious leak that never appears as a single obvious error. The most common hiding places are well known to anyone who audits leases for a living. Operating expenses that should be capped get passed through in full. Vacant space is not grossed up correctly, so remaining tenants absorb more than their share. Percentage rent is calculated on gross sales that should exclude returns or online orders. Insurance and tax pass-throughs include items the lease explicitly excludes, such as capital improvements amortised too quickly or landlord legal fees that belong to the landlord. None of this r...