When it comes to renting a home, apartment, or commercial property, it’s important that the paperwork is clear and concise. Both the landlord and the tenant need to have a clear understanding about the leasing deal that’s being made. The landlord provides a contract, and the tenant must read, sign, and abide by the contract. However, there will occasionally be discrepancies with the paperwork, and these discrepancies may only come to light after everything has been signed and notified. In this case, a lease audit may need to be performed by either party.
Lease audits are somewhat similar to tax audits. With tax audits, an individual’s finances and tax records are carefully looked over and reviewed for mistakes. With a lease audit, the leasing records are also checked and reviewed, by either the tenant or the landlord, in case there’s a problem with the details. If a tenant feels that there’s something wrong with the records, they can request to audit the lease.
In many cases involving a lease audit, there’s a discrepancy with the rent. The tenant may feel that they’re being charged too much rent, or feel that there are additional charges which are questionable. If a tenant would like to question the landlord about his or her lease, the landlord has a legal right to allow the tenant to review the records and books. However, all tenants must follow the proper procedures in order to do this. These procedures are typically located in the lease.
If you’d like to attempt a lease audit, it’s always best to do so in a cordial manner. Most landlords are well aware that their tenants have a right to know if they’re being properly charged. That being said, it’s important for landlords to closely abide by the contractual duties explained in the lease. If a landlord has additional charges billed to a tenant, it’s the landlord’s responsibility to explain and justify these charges. If landlords can’t justify their actions, a refund may be provided, or a lease adjustment may be in order.
A fair amount of lease audits show that there’s usually been a miscalculation of the numbers, or either the tenant or landlord misunderstood items stated in the lease. In either case, the tenant and landlord should work to clear up this confusion in a friendly and amicable fashion.
