EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Lease Audit Recovery Calculator

Audits recover 3-10% of billed CAM.

$
%
%

Net recovery

$122,400

Gross recovery

$153,000

Audit cost

$30,600

How the math works

Gross = CAM × years × recovery %. Audit cost = gross × cost %. Net = gross − audit.

$850k × 3 × 6% = $153k gross. × 20% = $30.6k audit cost. $122.4k net recovery.

How to Use

  1. Enter annual CAM billed.
  2. Enter audit years.
  3. Enter recovery rate %.
  4. Enter audit cost %.
  5. Read net recovery.

Frequently Asked Questions

What audits find?

Duplicate billing. Non-qualifying capital items billed as OpEx. Incorrect base year. Missing exclusions. Pro-rata calculation errors. Gross-up methodology. Excessive management fees. Variable expenses not grossed up. Average finding: 3-10% of CAM billed.

When to audit?

Tenant-side: annually on every lease with CAM > $50k. Large leases (<$1M CAM): specialized auditors. Landlord-side: systemic CAM management prevents need. Industry studies: average audit recovers 5% of billed; 5-7x cost of audit.

Cost?

Typical audit: $5k-$25k per lease. Contingency (share of recovery): 15-25%. Hourly: $250-450/hr. Large portfolios: ratio-based fees. Tenant-side: always contingent-optional. ROI for tenant: 4-10x typical; underutilized practice.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →