Billing Operating Expenses: Part 02. Key Formulas and Procedures

This is part 2 of a 3-part series which will introduce the recovery billing process to newer property managers and supply helpful guidance to the experienced property manager. Included is an examination of the expense recovery process beginning with budget estimates up through and including year-end reconciliation billings. Emphasis is given to methodologies and processes for grossing up and administering expense caps. Base year management is discussed as well as tactics that reduce the likelihood of a tenant audit. The value of thorough and accurate lease abstracting is demonstrated, and the seminar concludes with recommendations for best practices and strategic planning.