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Commercial Real Estate Lease Audit Checklist

A comprehensive checklist for thorough auditing of commercial real estate leases, covering rent calculations, operating expenses, CAM charges, and other financial obligations to ensure accurate lease administration and compliance.

Commercial Real Estate Lease Audit Checklist
by: audit-now
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About This Checklist

The Commercial Real Estate Lease Audit Checklist is an indispensable tool for property managers, tenants, and lease administrators to ensure accurate review and compliance of commercial lease agreements. This comprehensive checklist streamlines the lease audit process, helping to identify discrepancies, verify lease terms, and optimize lease management. By implementing this checklist, you can enhance financial accuracy, reduce disputes, and improve landlord-tenant relationships, ultimately leading to more efficient and profitable commercial real estate operations.

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Industry

Real Estate

Standard

BOMA (Building Owners and Managers Association) Standards

Workspaces

Commercial Properties and Office Buildings

Occupations

Property Manager
Lease Administrator
Commercial Real Estate Attorney
Financial Analyst
Tenant Representative

Commercial Lease Financial Review

(0 / 4)

1
What is the date when the lease agreement was last reviewed?

Select the date of the last review.

To track the review history of the lease agreement.
2
Please provide comments on the CAM charges review.

Enter your comments here.

To document findings related to Common Area Maintenance charges.
3
What is the total operating expense amount for the property?

Enter the total operating expense amount.

To verify the financial obligations as per the lease agreement.
Min: 0
Target: 0
Max: 1000000
4
Is the lease agreement compliant with BOMA standards?

Select compliance status.

To ensure that the lease terms align with industry standards.
5
When is the next scheduled review of the tenant's lease?

Select the date for the next lease review.

To ensure timely review of lease agreements.
6
Please provide any additional notes regarding lease compliance.

Enter your notes here.

To capture any specific compliance issues or considerations.
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7
How many late payments has the tenant made in the last year?

Enter the number of late payments.

To evaluate the tenant's payment history and reliability.
Min: 0
Target: 0
Max: 12
8
Is the tenant's lease in good standing as per the agreement?

Select the tenant lease status.

To assess whether the tenant is meeting lease obligations.
9
When was the last financial audit completed for this property?

Select the date of the last audit completion.

To track the frequency of financial audits.
10
Are there any discrepancies in reported expenses?

Describe any discrepancies found.

To identify any potential issues in expense reporting.
11
What was the total revenue generated by the property last year?

Enter the total revenue generated.

To assess the financial performance of the commercial property.
Min: 0
Target: 0
Max: 10000000
12
Are the financial statements accurate and up to date?

Select the accuracy status of the financial statements.

To ensure that financial reports reflect the true financial status of the property.
13
When is the next operating expense review scheduled?

Select the date for the next review.

To ensure timely evaluation of operating expenses.
14
Please provide justification for any unusual operating expenses.

Enter your justification here.

To document the rationale behind non-standard expenses.
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15
What is the total amount of Common Area Maintenance (CAM) charges for the year?

Enter the total CAM charges.

To evaluate the financial obligations related to common area maintenance.
Min: 0
Target: 0
Max: 1000000
16
Have all operating expenses been approved as per the lease agreement?

Select the approval status of operating expenses.

To confirm that all expenses comply with the approval process outlined in the lease.
17
What is the completion date of the tenant improvements?

Select the completion date for tenant improvements.

To track when improvements were finalized for compliance verification.
18
Please describe the tenant improvements made.

Enter a detailed description of the improvements.

To document the specifics of the improvements for future reference.
19
What is the total cost incurred for tenant improvements?

Enter the total improvement costs.

To assess the financial impact of tenant improvements on the property budget.
Min: 0
Target: 0
Max: 500000
20
Have all tenant improvements been approved by the landlord?

Select the approval status of tenant improvements.

To ensure that any modifications made by the tenant are compliant with the lease agreement.

FAQs

This checklist is designed for property managers, lease administrators, tenants, commercial real estate attorneys, and financial analysts involved in commercial lease management.

The checklist covers rent calculations, operating expenses, common area maintenance (CAM) charges, utility costs, insurance, taxes, and lease-specific clauses such as rent escalations and tenant improvement allowances.

Lease audits should be conducted annually, or as specified in the lease agreement. Additionally, audits should be performed during lease renewals or when significant changes occur in property management or ownership.

Yes, the checklist can be customized for various commercial property types such as office buildings, retail spaces, industrial facilities, or mixed-use developments, focusing on relevant lease terms and expenses for each.

By ensuring accurate lease administration and expense allocation, this checklist helps prevent disputes, maintains transparency, and fosters fair financial practices, benefiting both landlords and tenants in their commercial real estate relationships.

Benefits

Ensures thorough review of lease terms and financial obligations

Identifies potential overcharges or billing errors

Improves lease administration and compliance

Enhances cost recovery and expense allocation accuracy

Facilitates better budgeting and financial planning for both landlords and tenants