Commercial landlords frequently pass along certain seemingly intangible costs to a tenant (and are often paid by the tenant without question) even though such costs should have been disputed and retained by the landlord. In other cases, the landlord may fail to transfer certain charges that should be absorbed by the tenant. In either event, one party to the lease is giving up the opportunity to capitalize on the lease language by failing to enforce the lease clauses. Moreover, leases, when properly drafted, can be excellent risk management tools for transferring risk and insurance obligations to the party better suited to handle these obligations. ICA’s Lease Analysis and Expense Recapture Consulting Service will provide the Client with an analysis of the language of its leases, whether the Client is a landlord or a tenant, allowing the Client to utilize such language to recapture payments due from the other party to the lease. Visit our Lease Tips.
ICA’s Lease Analysis and Expense Recapture Consulting Service includes the following:
- Assist in recapturing costs billed to the Client through analysis of leases in conjunction with cost billings
- Analyze Client’s billing practices (with respect to its leases) and advise on methods of billing back insurance, CAM and other charges to the other party
- Assist in transferring insurance claims which should properly be made on the other party’s insurance, through analysis of claims runs and insurance clauses in the lease
- Review the Client’s Master Lease, and point out to the Client and its counsel areas of weakness with regard to assumption and transfer of risk and insurance obligations
- Advise on minimizing the risks of financial loss with respect to the loss exposures assumed by the Client in a lease, via insurance and non-insurance techniques
- Analyze “hold harmless” and “indemnification” clauses in leases, suggesting changes or improvements to the Client and its counsel either to maximize insurance coverage over such other exposures or to transfer risk to the other party, based on the Client’s objectives.
- Provide assistance in enforcement of insurance clauses, by setting up and implementing a Certificate of Insurance program to monitor insurance provided by tenants.
- Provide a critique of the coverages provided by the Client’s insurance program, whether the Client is the Landlord or the Tenant, to assure coverages adequately protect the Client’s exposures per the terms of its leases and per its unique needs.
See our Complete List of Consulting Services.