Lease Audits P
lease audits are an integral and essential part of due diligence when buying an investment property. audits apply to rental apartments, offices, shops, industrial, self storage and any other type of property where written leases exist. In audits of lease rent rolls are accurate and consistent with the actual leases. lease audits to compare the rent roll of bank leases. Most sellers of capital goods are not engaged in criminal activities such as renting a volume of space to undesirable tenants. However, financial difficulties caused by false statements made by the seller or the seller to sign leases with tenants can ruin an inappropriate investment unattractive.
Steps to a verification of rent may be: Determine if a screening has been done for tenants. For example, for apartments, which includes credit checks and criminal checks. Perform appropriate screening for tenants when there is no information in the file, provided that the tenant has signed or will sign a waiver. Determine whether the tenant actually occupies the space specified in the rent roll. Interview tenants in person or by written communication to determine if they agree to the lease appears in the register of rents and rent. Interview with tenants to determine whether they are satisfied with services provided by the management company and their relationship with the owner. Interview tenants about their plans or current changes. Compare leases nominal terms compared to actual payments. Balancing the books and bank statements.
The value of an investment property depends on the quantity and quality of income. Both the quality and quantity of income depends on the accuracy of information contained in the register of rents and implicit assumptions about the tenants lease audits. Sloppy record keeping and fraud may cause an investor perspective to be presented with a rent roll that is totally inconsistent with the income generated by the property. For apartments, in particular, it is not uncommon for an owner to relax the criteria for leasing to increase occupancy prior to the sale of the property. Investors can reduce risk and avoid becoming involved in a difficult situation, time consuming and financially draining investment by checking the accuracy of the lists of rents and the lessee under a lease audit.
O'Connor & Associate's staff of more than 50 real estate professionals can conduct an audit of the lease to mitigate the risks. They can also handle other due diligence tasks. These professionals are supported by an experienced staff of over 100 who are accustomed to complex assignments. Our team has experience in all aspects of real estate including acquisitions, due diligence, ownership, assessment, appeals of property tax and provisions. Reduce your risk and stress associated with using O'Connor and the width and depth of experience to evaluate real estate investments.
For more information on O'Connor & Associates lease audit services, telephone or email Larry Brewster at 713-686-9955 or fill out our online form. O'Connor & Associates is a national provider of commercial property real estate consulting services, including income tax, business personal property valuations, commercial real estate apprasial, market research, assessments of the conviction, and lease audits.
Our services benefit owners of all types of commercial properties, including multifamily housing, retail stores, hospitals, hotels, industrial buildings, manufacturing facilities, medical offices, commercial offices, restaurants, units Self-Storage, malls, shopping centers and warehouse distribution centers.