Bar Tenant’s Use of Contingency Fee Auditor for Lease Audit

One of the biggest points in a lease negotiation for the owner is prohibiting the tenant’s use of a lease auditor who works on contingency to perform the audit. These lease auditors get paid based on the amount of money they save for the tenant with the errors they find. Insist on a certified public accountant that’s being paid on an hourly basis to do the audit. This is a major point that gets negotiated into lease audit provisions, so don’t be afraid to make it a sticking point.

For more ways to limit your tenant’s lease audit rights, including a Model Lease Clause, see “Include Three Key Points in Lease Audit Provisions,” available to subscribers here.