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Utility Gross Up & Amortized Capital
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Richard Feldman
Senior Counsel
Nestle, USA

Lease Audit Articles

Sample Audit Notification Letter


VIA OVERNIGHT COURIER

[Date]

[Landlord Entity Name]
[Landlord’s Official Notice Address]
[Landlord’s Official Notice Address]
[Landlord’s Official Notice Address]

RE:    Lease Compliance Audit – [Building Address]

To Whom It May Concern:

To ensure [Tenant Entity on Lease] (“Tenant”) is accurately paying its Base Rent and paying an appropriate share of Additional Rent (including operating expenses, property taxes and utilities), pursuant to the terms of its Lease at the above referenced building, Tenant hereby notifies the Landlord it intends to conduct an audit of the landlord's financial records for the building to evaluate the accuracy of the rental charges which have been billed for calendar years [XXXX] – [YYYY], inclusive.  [Note: if your lease requires you to specify in which respects you dispute the landlord’s charges, add a statement to that effect here.]

Please rest assured [Tenant] is not in any way implying any intentional error on the landlord’s part by its decision to conduct this audit.  Rather, it is [Tenant’s] fiduciary responsibility to its shareholders to ensure it is making appropriate rent payments consistent with the spirit and intent of its lease.

Sincerely,

[Name]
[Title]

cc:    [Lease-required Notice Copies to Other Landlord Parties / Addresses]
 
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