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Tenants Take Note: You Also Need Professionals on Your Side

Feb 27, 2024
Tenants should carefully review Operating Expense Clauses to ensure that they do not prohibit tenants from seeking outside expertise for lease negotiations, financial optimization and compliance assurance.

Guest Post by Sara Stanley, MCR, Managing Director, Commercial Tenant Services, Inc.

Landlords are increasingly recognizing the value of working with experts to streamline financial operations, maximize tax benefits, and ensure compliance. Their partnership with expert consultants and accountants goes way beyond just number crunching – it provides a strategic advantage in navigating the complexities of property ownership.

Operating Expense Clauses often limit Tenants’ use of experts. . . but why? Landlords understand experts are empowering. Restricting a tenant’s access to these same types of advisors helps Landlords gain the upper hand and protects them from discovery of errors that might not be in their favor. We see these constraints often and the costs to tenants can be in the thousands to hundreds of thousands of dollars (even millions).

Just as landlords rely on specialist experts, tenants can benefit significantly from adopting a similar approach. Here’s why:

Financial Optimization: Lease Audit experts can help tenants navigate lease agreements, analyze financial implications, and identify opportunities to optimize costs. These proactive measures can lead to significant savings immediately and over time.

Lease Negotiations: Negotiating a lease can be complex, and tenants often find themselves at a disadvantage. With the guidance of conflict-free, 3rd party professionals, tenants can ensure favorable terms, avoid pitfalls, and establish a solid foundation for their occupancy.

Compliance Assurance: Just like landlords, tenants need to stay compliant and continually remain aware of the implications of ever-changing regulations. A professional Lease Audit team can provide invaluable assistance in navigating a dynamic financial landscape.

The real estate landscape is ever evolving, and staying ahead requires strategic partnerships and cutting-edge tools.

Sara Stanley, MCR, is Managing Director at Commercial Tenant Services, Inc.  

Lease Auditing Lease Management / Administration
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