Does the lease call for the rent to increase periodically by any increases in operating expenses?
Does the tenant pay its pro rata share of any increase in operating expenses over a base figure or in a net lease its pro rata share for the total operating expenses for the operating years?
Does the lease define the base figure, such as the amount of operating expenses in a calendar year or an expense stop?
If the base year is a calendar year, is the base year stated?
If the base year is a fiscal year, is the beginning and ending date stated?
Does the lease state the base year expenses?
Do the base year expenses reflect full occupancy or adjust to full occupancy?
Was the expense stop calculated by actual dollar costs of a particular year or in a new building, an estimate of operating costs?
If the expense stop is an estimate, is it reasonable and how was it made?
Does the lease specify the tenant’s pro rata share as a percentage?
Is the tenant’s pro rata share, as specified in the lease, correct?
Is the tenant’s pro rata share based on total square footage in the building instead of the square footage leased by landlord?
Is the total square footage in the building the total useable, rentable or leaseable area?
Is the measurement type for the tenant’s square footage the same as the rest of the building?
Does the lease require all expenses to be reasonable and directly related to the building’s operation?
Are any payments to the landlord’s executive personnel excluded from operating expenses?
Are costs for items that, by standard accounting practice should be capitalized (such as HVAC replacement) unless those costs reduce operating expenses and are amortized over the reasonable life of the capital items according to generally accepted accounting principles and the yearly amortization does not exceed the actual cost reduction for the relevant year, excluded from operating costs?
Are depreciation of interest (unless it is related to allowable capital item) excluded from operating expenses?
Are leasing commissions, legal fees, cost to correct original construction defects, excluded from operating expenses?
Is any increase in operating expenses due to another tenant’s “particular use” excluded from operating expenses?
Are expenses paid directly by another tenant for any reason (such as excessive utility use) excluded from operating expenses?
Are the costs for improving any tenant’s space excluded from operating expenses?
Is any increase greater than 5 percent in management fees or employees’ salaries or benefits or both excluded from operating expenses?
Is any repair or other work required by condemnation, fire, or other casualty excluded from operating expenses?
Are costs exceeding those obtainable through competitive bidding excluded from operating expenses?
Are any services provided to some tenants but not to this tenant excluded from operating expenses?
Are any costs, penalties, or fines due to the landlord’s violation of any governmental rule or authority excluded from operating expenses?
Is the landlord required to keep books and records according to generally accepted accounting principles?
Must the landlord provide a detailed list of expenses prepared by a certified public accountant (CPA) to support the increase?
Does the lease clearly give the tenant the right to audit the landlord’s books and records?
If the audit reveals a discrepancy of the lesser of $”X” or 2 percent or more, must the landlord pay for the audit?
Does the lease state how disputes over increases in operating expenses will be settled: by arbitration; by lawsuit?
Does the tenant receive a credit if the estimated monthly payments exceed the actual incurred expenses or the operating expenses are reduced?
Are any tenants excluded from contributing to the Common Area Maintenance (CAM)?