Commercial Lease Compliance Audit Checklist
Commercial lease compliance audits protect landlord and tenant interests by ensuring lease obligations are being met. This annual audit reviews all key lease provisions including rent, CAM, options, and compliance covenants.
- Industry: Real Estate
- Frequency: Annual
- Estimated Time: 60-90 minutes
- Role: Property Manager / Real Estate Attorney
- Total Items: 31
- Compliance: GAAP ASC 842 - Lease Accounting Standards, BOMA International Lease Measurement Standards, State Commercial Landlord-Tenant Act, ADA Title III - Tenant Responsibilities in Leased Premises
Rent and Payment Compliance
Review rent payment history.
- Base rent paid in full through current period?
- No outstanding late fees or charges?
- Annual rent escalations applied correctly per lease schedule?
- Percentage rent (if applicable) reported and audited per lease?
- Security deposit held per lease requirements?
CAM and Operating Expenses
Verify CAM charge calculations.
- Annual CAM reconciliation completed and delivered to tenant per lease?
- CAM charges include only lease-permitted expense categories?
- Capital expenditures and non-recoverable items excluded from CAM?
- Tenant audit rights exercised within permitted window?
- Controllable CAM cap applied correctly if lease provides one?
Lease Covenants
Review tenant covenant compliance.
- Tenant using premises only for permitted lease uses?
- No unauthorized assignment or subletting?
- Tenant signage complies with lease requirements?
- Current tenant insurance certificate naming landlord as additional insured on file?
- Any tenant alterations approved per lease alteration provisions?
Options and Critical Dates
Track option and lease deadline compliance.
- Renewal option notice deadlines tracked and communicated to tenant?
- Expansion or first refusal options managed per lease terms?
- Early termination option deadlines tracked?
- Lease expiration date tracked in property management system?
- Estoppel certificates provided per lease requirements when requested?
Property Condition
Review property condition obligations.
- All landlord repair obligations current per lease?
- Tenant maintaining premises per their lease maintenance obligations?
- Surrender condition requirements communicated for expiring leases?
- No hazardous materials introduced without landlord consent?
- No mechanic's or material liens filed against property?
Documentation and Records
Verify lease documentation is complete.
- Fully executed lease and all amendments on file?
- Lease abstract current in property management system?
- All material lease correspondence maintained in tenant file?
- SNDA (Subordination, Non-Disturbance, Attornment) agreements on file?
- Annual lease compliance audit report prepared and filed?
- Renewal or expiration notification sent per required notice period?
Related Real Estate Checklists
- Eviction Notice and Lease Termination Compliance Checklist
- Real Estate Environmental Site Assessment Checklist
- Commercial Real Estate ADA Accessibility Audit Checklist
- Landlord-Tenant Dispute Documentation Checklist
- Property ADA Accessibility Compliance Checklist
- Real Estate Capital Improvements Planning Checklist
- New Property Management Onboarding Inspection Checklist
- Commercial Lease Abstract and Review Checklist
Related Regulatory Compliance Checklists
- Eviction Notice and Lease Termination Compliance Checklist - FREE Download
- Real Estate Environmental Site Assessment Checklist - FREE Download
- Commercial Real Estate ADA Accessibility Audit Checklist - FREE Download
- Landlord-Tenant Dispute Documentation Checklist - FREE Download
- Property Tax Assessment Appeal Documentation Checklist - FREE Download
- Commercial Property Insurance Program Review Checklist - FREE Download
Why Use This Commercial Lease Compliance Audit Checklist?
This commercial lease compliance audit checklist helps real estate teams maintain compliance and operational excellence. Designed for property manager / real estate attorney professionals, this checklist covers 31 critical inspection points across 6 sections. Recommended frequency: annual.
Ensures compliance with GAAP ASC 842 - Lease Accounting Standards, BOMA International Lease Measurement Standards, State Commercial Landlord-Tenant Act, ADA Title III - Tenant Responsibilities in Leased Premises. Regulatory-aligned for audit readiness and inspection documentation.
Frequently Asked Questions
What does the Commercial Lease Compliance Audit Checklist cover?
This checklist covers 31 inspection items across 6 sections: Rent and Payment Compliance, CAM and Operating Expenses, Lease Covenants, Options and Critical Dates, Property Condition, Documentation and Records. It is designed for real estate operations and compliance.
How often should this checklist be completed?
This checklist should be completed annual. Each completion takes approximately 60-90 minutes.
Who should use this Commercial Lease Compliance Audit Checklist?
This checklist is designed for Property Manager / Real Estate Attorney professionals in the real estate industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.