Audit and Recovery
The auditing of CAM charges is a methodical process involving the examination of all documents associated with a tenant’s lease, invoices and other correspondence from the landlord, as well as data from other sources to determine if charges assessed by the landlord under a tenant’s lease have been appropriate.
The entire CAM audit from start to finish is a multi-step process that can take up to nine months to complete. It often includes reviewing all of the necessary documentation, negotiating with the landlord, and finally collecting and verifying all overcharges are recovered.
DAUM Corporate Services performs these audits and services with the main objective of generating significant financial savings on behalf of our clients by identifying errors and overcharges made by landlords that will lead to both refunds and future savings. We examine costs such as base rent, percentage (or contingent) rent, common area maintenance charges, operating expenses, and real property taxes.
A few examples of locations that would have the highest value in an audit would typically be large premises or premises with a large prorate share, premises with a significant change in occupancy, change of ownership or management, markets where real estate taxes or utilities have changed significantly, and new buildings or buildings undergoing significant renovation. These locations should be monitored closely as they have the highest potential for recovery.
- Potential Future Financial Savings – Errors found and corrected today can result in direct savings in rent and overall expenses that can carry forward for many years to come.
- Obtain Instant Financial Savings – Identifying errors and overcharges made by the landlord and recovering these excess charges can result in significant immediate savings for the company.
- Outsourcing Audit Services to an Expert - DAUM Corporate Services are experienced professionals. We have the skills and knowledge to negotiate and manage the refund from start to finish. We will represent our client’s interests, while protecting their relationship with their landlords.
- Discourage Future Overcharges - Companies can imply to their landlord that they are aware of the terms of their lease, thereby avoiding any attempt by the landlord at deliberate overcharges in the future.
- Reposition Staff - DAUM Corporate Services can reduce the stress on a company’s real estate team and accounting team and relieve the responsibilities of the audit process which could allow them to focus on their core business needs.
Audits can be conducted on either a fee based pricing, which would be based on a dollar per hour rate or on a contingency basis. Fee based pricing allows the client the full savings once our hourly fees are paid. Contingent fee-based pricing assures DAUM’s services are self-funding. Pricing based on a contingent fee structure assures that the client will not increase their costs by authorizing an audit. If the audit does not prove successful, there is no fee.
PDF Download (Printer-Friendly)