Richvale Consulting

RICHVALE CONSULTING AREAS OF EXPERTISE:

Our scope is to ensure that commercial Tenants’ real estate passthrough expenses are calculated in compliance with their individual leases, current market conditions and Generally Accepted Accounting Principles. We identify and recover overcharges returning them to the Tenants’ bottom line while ensuring these overcharges do not happen in the future. 

• Complete review of annual landlord reconciliation invoices for common area maintenance, real estate taxes, insurance, etc. to identify overcharges.
• Obtain detailed documentation to validate all expenses charged: provide clear and precise audit results.
• Conduct expense analysis (vet expenses against lease language, compare to market rates and establish trend analysis.
• Perform desktop or onsite review of landlords; books and records.
• Prepare written reports covering audit recommendations and findings.
• Advise Client of unfavorable lease language related to occupancy costs and recommend improvements when leases are up for renewal, renegotiation or during use waiver requests.

What is Lease Audit?

Auditing a company’s real estate expenses has become a vital part of many companies’ internal control procedures helping increase efficiency and control costs. Lease Audit is a thorough review of Tenant’s occupancy costs and its unique lease agreement. A Lease Audit can help verify that charges billed back to you are accurate and in compliance with your lease terms.

Benefits of Lease Audit

By identifying errors and overcharges, Tenants will realize immediate and future financial benefits. Not least, a lease audit will give Tenants piece of mind knowing they were charged according to their own lease.

Where do errors occur

From expenses considered to be outside the scope of normal repairs, maintenance and operation to involuntary errors, mathematical errors and Lease misinterpretation to name a few.

When is a god time for a lease audit?

Anytime, but mainly when a review has not been done in two or more years or not at all. Whether it is the first year of the term, planning to renew, expand or vacate the premises or an extended renovation or construction work is performed.

Commercial Real Estate Accounting

Real Estate accounting paves the path for having accurate reports and records throughout the buying and selling processes. Our Team manages all accounting processes, handles all accounts payable and receivable on a daily basis to make sure each invoice and expense report is accurate, reconcile all business accounts to ensure our records match up. We prepare quarterly and yearly reports and budgets using standard best practices.

Lease Administration

What is Lease Administration?

The day- to- day management of financial commitments, critical dates and lease obligations throughout the lifecycle of a lease.

Why is it important?

The management of a lease is similar to managing a bank account effectively. While certain costs are static, most change and increase over time. A lease is no different. To manage a lease effectively, financial obligations and critical dates should be recorded, monitored, managed and scrutinized. In addition, it is important to understand, as Tenant or Landlord, who is responsible for what when it comes to repairs, maintenance and replacements.

Why Outsource your Lease Administration?

Our industry experts understand leases and have years of experience effectively managing small to large portfolios. The lifecycle and term of every lease is different and therefore imperative that each lease is abstracted, managed and maintained accurately. Our documented processes and procedures ensure accuracy, in addition to cost savings as we leave no stone unturned. Our reporting provides transparency and reliable data upon which our clients can rely on. In partnership with our internal lease auditor(s) we ensure a forensic review of costs, where allowable per the terms of the lease.