Last year I helped a client save literally thousands of dollars in a two-step process. This client was undergoing a corporate re-structuring and wanted to downsize by about 30%. During our initial meeting, we discussed various options and I requested a copy of their lease along with their latest rent invoice so I could provide an analysis of their remaining lease obligation.
When my client handed me their rent invoice, something immediately stuck out – their monthly charge for their supplemental a/c unit for their computer room. It was more than I pay on my 3,000 sq ft house! I immediately asked to see the computer room, which was less than 40 sq ft. Something was fishy. At the time, my company had an office in a sister building and we had an even larger computer room with a supplemental A/C unit. My investigation revealed that we were paying a fraction of what my client was paying. How could that be?
Now my client had provided me with all of their rental invoices so I could unravel what was happening with the A/C charges. They also provided the landlord’s calculation of the meter readings from the supplemental unit. That was the key that unlocked the puzzle. The landlord’s accounting staff was using an incorrect multiplier in its calculations. The meter that the landlord had installed did not require the use of a multiplier so instead of paying $50 to $60 a month for the supplemental A/C, my client had been paying $500 to $600.
Based on my analysis, the client approached the property manager and after several persuasive rounds of talks, they received a refund of over $7,000. This was a tremendous bonus to my client who has a small office in Miami.
My next step was persuading the landlord to “blend and extend” the tenant’s lease early. We were able to coax the landlord into relocating my client into a smaller space by agreeing to extend the lease. It was the first time this landlord has done this for a smaller tenant.
These two steps put my client in a much better position to weather the current economic downturn. The landlord benefited by securing a longer term income stream. Call me today for a free lease analysis – sometimes an objective, outside expert uncover a great opportunity.