Audits don’t usually bring sunshine and rainbows to mind – especially if we’re talking about taxes. But audits can be extremely beneficial for businesses seeking to understand where they stand, whether there are any discrepancies and other critical information that may have gone undiscovered without an audit.
When was the last time you conducted an inventory of your leases? Owners of bigger portfolios have trouble consolidating leases into one place, let alone finding the specific information they need. Let’s help you discover why regular lease audits are important.
What Is A Lease Audit?
First, let’s define lease audits, as the term can potentially have different definitions for different industries. As it applies to commercial real estates (CRE), lease audits usually occur when a tenant wants to confirm billed expenses are legitimate. These rights are usually built into the contract and help the landlord stay accountable while giving the tenant peace of mind.
Benefits of Lease Audits
One of the biggest benefits of a lease audit is the transparency it provides. With a lease audit, the tenant and landlord are on the same page and can make adjustments if needed (or use the info when it comes time for lease renewal negotiations). Here are a few of the other benefits of regular commercial lease audits:
- Helps reduce and catch human errors
- Ensures tenant isn’t being over/underbilled
- Confirms bills and expenses are in line with lease terms
- Reveals problems with billing procedures
- Gives transparency about property expenses
- Determines whether adjustments or reallocations are needed
Managing Lease Audits with CRE Software
Lease audits can get complicated and overwhelming in a hurry (especially if you have multiple properties in your portfolio). To manage all of the information associated with them, a CRE tool is worth considering. With Quarem, for example, you can easily organize, manage, share, access and store all information related to your commercial leases, including audit results. Then you’ll be able to make adjustments for the future and reference past results to show improvement. CRE software can automate many of the tasks associated with lease audits, freeing up your time as well.
If you’d like to see how Quarem can help you manage, track and organize your lease audit information, request a demo today.