Can tenants see a breakdown of Triple Net cost?
Hello, my landlord dropped a huge amount of money and expect every business in the building to pay it. Can a tenant see the breakdown of cost from operating and maintenance fees before paying? 

My landlord is stalling and demands the money now. Is this legal?
[{"id": "dtc59bm", "text": "Look at your lease. \n\nTypically the thing you are asking to review is called the landlord's \"CAM Rec\" (unofficially) and tenants usually have a clause in their lease for a right to audit it. There are a lot of complicating factors such as occupancy gross ups, fixed costs, etc. that might also be part of the calculations - if this is the case and you do not understand how these work, you may want to ask other businesses in the building if they were able to audit and what the found.\n\nYou also might be able to push back on some expenses: If you are on, say, the 1st floor of the building, you might be able to push back on some of the costs for, say, elevator maintenance or exterior window cleaning since those costs are only expensive because of the people on the 2nd floor or higher. In general try to find expenses that don't pertain to you. The goal is to get the LL to reclassify you in a different \"expense pool\" that results in a lower balance due from you.\n\nYou could also check to see if any capital improvements are being paid by tenants. Sometimes tenants are charged a monthly CAM fee based on the building's operating budget, and you can only be charged for \"operating expenses.\"  This hypothetically, and ideally, results in either a very low balance due from tenants or even a small refund to tenants. If there IS a large amount due from tenants, it could be because of a large unbudgeted capital replacement - which depending on the language of your lease, you might be excluded from paying because it is not technically an operating expense.\n\nIt has been a number of years since I have worked with NNN so there are definitely other people who will come to this thread with MUCH better advice, but I wanted to give you a quick reply in case you needed something timely. Also, I find it a little suspicious that the LL has already finished EOY financials AND the CAM rec and it's not even February. The financials have most likely not been reviewed by a CPA yet and certain expenses may still need to be moved around between capital/recoverable/non-recoverable.", "replies": [{"id": "dtc5nyj", "text": "On my contract, I can asked for the CAM, but they gave me only a basic breakdown such as property tax, building improvement, environmental study, and property management. \n\nIs it in my right to see actual receipts and documents?", "replies": [{"id": "dtc5zm6", "text": "Usually, the lease stipulates that.\n\nYou can always ask. The worst they can do is say no.", "replies": [{"id": "dtcad58", "text": "Yes the contract says I can audit", "replies": [], "depth": 4}], "depth": 3}, {"id": "dtc78ox", "text": "The key is to check your lease to see if you have a section called \"Audit Rights\" or anything close to that around your Operating Expense section. If it says you have the right to audit, find a tenant rep and tell them what's going on. They will understand what you're asking and be more than happy to help.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dtcac8p", "text": "So Ive been pay monthly triple Net already, but now they say we owe more triple Net for 2015 and 2016 and want thousands to cover their over cost run. They are asking for the payment now within a few days and threaten to close me down.\n\nCan I report this? None of the other businesses connected to the other building tenants have done so until CAM is released. ", "replies": [{"id": "dtcptk6", "text": " NNN reconciliations are my bread &amp; butter. \n\n Check your lease for the following: \n1) Tenants right to audit (does the Tenant have the right to outsource this to a 3rd party? - there are companies that audit these and charge you a finders fee) if not you can likely figure it out for yourself. If you have the right to audit you can and should request a breakdown of the expense categories and the respective invoices.  \n\n 2) When must you submit payment? A lease will often say that even if you are disputing the charge you have 30 days to pay even if you plan to continue to audit it. If you dont pay by deadline the Landlord can place you in default of the Lease (often this means they can terminate the lease on you). \n\n3) check for a wording in the lease regarding a timeline for reconciliations. Look for wording that says something along the lines of, expensea not charged within 24 months are no longer chargeable. Ex. If the landlord sends you a 2016 statement in 2018 you dont have to pay it because they were too late. \n\nTips. When conducting the audit ensure that youve read the lease in full. So you know what you and the landlord are responsible for. \n\nCommon \"mistakes\" on reconciliations (ie. things to watch for): double dipping fees, admin vs management fee, capital costs &amp;/or capital repairs, amortization vs depreciation, costs not associated with your property, property taxes (always always ask for a copy of the tax bill), and most importantly know your proportionate share (watch out for vacant space or incorrect % share calculations) . \n\nAny other questions feel free to ask! :) \nHope that helps. ", "replies": [{"id": "dtcul0r", "text": "What is the difference between admin and management? This is great info! Thanks!", "replies": [{"id": "dtd4cly", "text": "Check your lease to see if there is an admin fee, a mangement fee or both. Most of the time there is only 1 type of fee, but sometimes landlord will try to charge multiple fees, or different fees on different expenses. Basically make sure your only pay for what you agreed to in the lease! Hope that helps!", "replies": [{"id": "dte7m91", "text": "Also be aware that if you have previously been paying CAMTI, that your lease will in some circumstances stipulate that the Landlord can not raise CAMTI more that a certain percent from one year to the next. \nEx: if you paid $3.00/sf in 2015 and they are asking for $4.00/sf in 2016- this would be a yoy increase of 33%.\nHowever, this clause is generally not in leases that are provided by the landlord, which in your situation seems to be the case. You should get yourself a well qualified commercial agent next time you are signing a lease. They generally take their fee from the landlord and is a free service for the tenant.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dtlkc7j", "text": "I'm late to answering this. \n\nBut yes they can do this. It's in your lease, it would be under \"CAM\" or \"Common area\" or \"operating costs\". \n\nEnjoy\n", "replies": [{"id": "dtlohbz", "text": "What if the landlord doesn\u2019t want to show it?", "replies": [], "depth": 2}], "depth": 1}, {"id": "dul4wh7", "text": "Sounds like an unsavory Landlord.  You should ask a broker to help read your lease to determine your rights per that agreement.  Yes, you should have audit rights as mentioned in this thread by others, even if it means you are only allowed to review the reconciliation at the landlord\u2019s offices.  ", "replies": [], "depth": 1}]