Once a long-term lease agreement has been made it isn’t common for it to be reviewed unless the Landlord or Tenant has a problem. Legal interpretation is usually expensive and unavailable in a timely manner. Most leases contain critical dates that both Landlord and Tenant are obligated to follow. On behalf of the Landlord, Syracuse Realty Group’s Lease Administration Service tracks these dates to ensure that every dollar allowed under the lease is accounted for. For example, if there are rent increases or extra charges such as, utilities, real estate taxes, and common area charges, SRG makes sure proper billing is collected. On behalf of the Tenant, we make sure that payments are being made only for obligations set forth in the lease.
This is an extension of Lease Administration and Asset Management Services that provides more details. In most cases we are hired for this service by the Tenant to oversee Pass-through expenses, such as common area charges, real estate taxes, insurance, and utilities, which can represent 10% to 40% of the total occupancy costs.
On occasion, Landlords may use these income categories as profit centers. We closely analyze the lease agreement along with periodic billings from the Landlord. We then compare them to set standards for these services in similar markets. Even if your lease is set up as gross rent, we look at the overall property to see if it is properly managed. Often tenants are motivated to move as a result of lower rent or more space within the same market rather than moving due to poor maintenance conditions in the spaces they previously occupied.