The purpose of this phase is to get an initial understanding of the client's lease obligations.

Categorize the lease for fast reference, critically examine all financial clauses, rationalize all formulas and track their application.

Itemize all exception clauses, unusual terms or language, non industry terms, and cross reference their application and execution.

Identify the area measurement principles and calculations. Conduct a physical site measurement to determine the rentable space.

Prepare a cost spreadsheet of Tenant and/or building costs and compare costs per foot to database records or industry averages, summing up discrepancies.

The purpose of the Landlord Audit, usually necessary, is to obtain any detailed information not readily available from the Client's files.

Submit a written audit plan, reviewed by the Client, which is specific as to questions and areas of concern. This phase may be done by correspondence or preferably at the Landlord's offices.

Any contact with the Landlord may only be accomplished with either the Client's written permission or by actual participation. Most Client's prefer to provide an introductory meeting.

Concerns addressed directly to the Landlord in Phase II are typically; an explanation of calculations, further cost details, allocations of costs, and lease concept discrepancies.

The purpose of this phase is to submit to the Landlord a request for reimbursement accompanied with the logic as to why a refund is appropriate. In the majority of cases the Landlord will wish to negotiate the amount, regardless of how valid the claim may be.

The client may elect to participate directly, leave the task to us using agreed levels of authority or conduct negotiations jointly.

Negotiations may be conducted either through correspondence or meetings. Substantial recoveries usually take a series of meetings over a longer period of time.

My Lawyer advised me on the lease terms, so why do I need your services? Lawyers, who do not work on contingency, focus on legal terms, seldom review the Landlord's annual charges or interpretation of the lease clauses, and do not verify leased area.

My Accountants check my expenses, so why retain someone else? Accountants, usually at fixed hourly rates, verify what you have paid and owe, but seldom look at the details of your lease costs without your specifically asking them to, nor do they verify the lease area.

I have staff who do this, so why retain Leasehold Consulting Services? Most staff, including accountants, do not audit the detail of the Landlord's billings, do not relate the lease clauses to the billings, nor have the detail experience or industry familiarity we do. In most business settings staff is kept at minimal levels.

My lease has an area certificate from the Landlord's Architect so it must be right? Half the leases we look at do not have an area certificate, even when specified as attached. Most of the other half are incorrect for a wide variety of reasons.

My Landlord is a great guy and treats me well, so why do I need to check these costs? Some Landlords are not great guys, even great guys make mistakes, staff turnover is usually high, and rent is probably your second biggest cost. Almost all errors we find are in favour of the Landlord.

Will my Landlord get upset if I have someone question his charges? Not if we do our job properly and question only consequential practices or amounts. Most Landlords are receptive to substantiated or reasonable inquiries from Tenants and are well aware that this is common practice.

What if my Landlord refuses to co-operate? Most Landlords do, but if not, where the amount is substantial, you have a choice of accepting his decision or challenging it.

Where are most of the overcharge errors found? Our dollar findings are about equally split between area, lease clause interpretation, common cost allocation errors, and mechanical mistakes.

Do you assist us with legal matters, locate alternative premises, or negotiate lease terms? We do not replace, but do augment, the services of licensed legal and real estate advisors.

Is there a typical amount of over billing you find? About two dollars per square foot on average.

What do you charge for your service? A small administration fee plus fifty percent of whatever you receive from the Landlord, payable only if and when you get it.

Do you sometimes charge less for your service? Large volume clients (huge space, many locations) can convince us to take less.