The 7 Things You Must Check To Assure You Don’t Overpay The Operating & Tax Expense Invoice You Will Soon Receive
By: Carrie S. Holstead
It’s easy to think that simply checking the math in your operating and tax expense reconciliation invoice will protect your company against overpaying…think again. A cursory review allows for the possibility of mistakes slipping by that cause your firm to be among the companies overpaying this invoice. Instead, protect your company by carefully scrutinizing the seven things listed below. If you have questions, feel free to contact me. As always, if you are a client, simply send a scanned copy of your invoice to me and we will review this free of charge as an ongoing protection to your company.
1.) Base year
Confirm the base year is accurate and proper credit been given for an update if any.
2.) Percentage of the building leased
Make sure the percentage of the building leased is accurate and if there has been a change to the size of your space, the proper adjustment has been made on the correct date.
3.) Size of the building
Verify the building isn’t “growing”. On a number of occasions, our organization has seen the same size building measured differently by a new owner resulting in a significant increase to the square footage.
4.) Cap on expenses
Assure any cap on expenses negotiated in the lease has been applied.
5.) Proper credit for estimated payments
Confirm proper credit has been provided for estimated payments made. Also, if estimated payments far exceed the actual expenses, ask why the budgeted cost was so high.
6.) Operating Expenses & Real Estate Taxes
Make sure these expenses and taxes are in line with the competitive market. Additionally, confirm the line items included are in accordance with your lease.
7.) Sale of the building
Understand that glitches can occur when there is a new building owner or different software. As such, every number and line item in your operating and tax expense reconciliation invoice should be carefully scrutinized following the sale of the building in which your firm leases space.