Most NNN leases give tenants the right to review the documentation behind the CAM reconciliation. This right is called an audit right or inspection right. Many franchisees never exercise it — not because they don't have concerns about their charges, but because they don't know what to request, how to request it, or what to do if the landlord doesn't cooperate.
Exercising audit rights is not adversarial. It is a normal part of lease administration. Property managers who receive professional, well-framed documentation requests respond to them routinely. The steps are straightforward.
Step 1: Find the Audit Rights Clause
Before requesting anything, locate the audit rights provision in your lease. It is typically found in the CAM or operating cost section of the main lease body, sometimes labeled "Audit Rights," "Tenant's Right to Audit," or "Inspection of Landlord's Records."
The clause will specify:
- The window period during which you can request backup (commonly 12 months from delivery of the reconciliation, sometimes 90 days, sometimes 6 months)
- What documentation you are entitled to receive
- Whether there are restrictions on who can conduct the review (some leases specify a licensed CPA; most do not)
- Whether notice of dispute must be given during the window or only the request for documentation
Abstract the following information before proceeding:
- The date the reconciliation was delivered to you (not the lease year end date — the delivery date)
- How long you have from delivery to request backup
- When your window closes
If you have not done this, your window may be shorter than you expect.
Step 2: Draft the Written Request
Email is sufficient for the initial request. You do not need formal legal letters unless the lease requires a specific notice method (check the notice provision). A clear, professional email to the property manager is the standard starting point.
Your request should include:
Identification. Your name, the lease, the premises address, and your tenant account number if applicable.
The year under review. Specify the reconciliation year you are requesting documentation for (e.g., "the 2024 calendar year reconciliation delivered on February 15, 2025").
What you are requesting. Be specific. A broad request like "all documents" is harder to fulfill and easier to dispute. A specific request is faster to process and harder to refuse:
- The general ledger for all CAM expenses for the reconciliation period
- The management fee worksheet showing how the fee was calculated
- The denominator support documentation — the full roster of tenants, their square footages, and how total leasable area was calculated
- Copies of major invoices (typically the top 10-15 by dollar amount, or all invoices above a threshold like $5,000)
- The property tax bill and any appeal documentation if taxes are a significant CAM line item
The delivery format. Request electronic copies (PDF). Paper requests require physical delivery or on-site inspection, which adds friction for both parties.
A response timeframe. The lease may specify how long the landlord has to respond. If it does not, requesting a response within 30 days is reasonable. Note this in your email.
Step 3: What the Property Manager Typically Provides
A property manager responding to a routine documentation request typically provides:
- An itemized CAM ledger showing all expenses for the period, by category
- The denominator calculation (total leasable area breakdown)
- Major vendor invoices for landscaping, janitorial, security, and common area maintenance
- The management fee calculation
- Property tax documentation
What they may not provide without a follow-up request: vendor contracts (the rate underlying each invoice), documentation for excluded expenses (why certain costs were not included), or the reconciliation methodology for gross-up calculations if applicable.
If the initial response is incomplete, a specific follow-up request identifying what is missing is usually sufficient. Most property management firms have a process for responding to tenant documentation requests; the initial response is often incomplete simply because the request was generic.
Step 4: What to Do If the Landlord Doesn't Respond
If you do not receive a response within the requested timeframe, send a follow-up email that:
- References your original request with the date
- Notes the audit window closing date from your lease
- Asks for a specific response by a revised date
Mention the window closing date explicitly. Property managers are aware that once the window closes, the tenant's right to dispute typically expires. A response that acknowledges "I see your window closes on [date]" signals that the request has been registered.
If you receive no response after two follow-up attempts and the window is approaching closure, the next step is a formal notice sent via the notice method specified in your lease (usually certified mail to the landlord's address listed in the lease). A brief note from a tenant-side attorney at this stage tends to produce faster responses than continued direct communication.
Document everything: save copies of all emails, note the dates of each contact, and record the delivery date of your original reconciliation. If the matter proceeds to a formal dispute, this documentation establishes your timeline.
Step 5: When You Have the Documentation
Once you have the backup documentation, the review process begins. The questions to answer:
- Does the denominator match the definition in your lease?
- Are the excluded categories excluded? Check whether any capital expenditure invoices, management overhead, or tenant-specific costs appear in the CAM ledger.
- Does the management fee calculation match the methodology in your lease?
- Do the total expenses in the ledger match the amounts on the reconciliation statement?
- For locations with a CAM cap: do the controllable expense totals stay within the cap?
If you identify discrepancies, you are now in position to raise them with the landlord — either directly or through a CPA or auditor who can formalize the findings. The documentation request is the prerequisite for any substantive review.
Verification Action
Locate the audit rights clause in your most recently signed or renewed lease right now. Record the window period. Calculate when the window closes on your most recent reconciliation. If you have fewer than 90 days remaining, this should be treated as urgent. Set a calendar reminder 60 days before the window closes for all active leases so you have time to request and receive documentation before the deadline passes.
Frequently Asked Questions
Does requesting backup documentation put me in conflict with my landlord? A professional documentation request is a routine part of lease administration and does not typically create conflict. Property managers receive these requests regularly from institutional tenants and large retail chains. Framing the request as a standard record review rather than an accusation keeps the interaction professional.
What if the lease doesn't have an audit rights clause? If no audit rights clause exists, you have limited contractual basis for demanding documentation. You can still request it as a courtesy, and some landlords will provide it. Without a contractual right, however, the landlord can decline. This is one reason to negotiate an audit rights clause before signing new leases.
Can I request documentation for prior years where the window has already closed? Generally no — the window expiration typically eliminates the right to dispute, which makes the backup documentation less actionable. Some leases distinguish between the right to request documentation and the right to dispute; check your specific lease language. But in most cases, closed windows mean prior years are not recoverable.
Do I need a CPA to make the documentation request? No. The documentation request can be made by any authorized party. Some leases restrict who can conduct the formal audit review (often requiring a CPA or licensed accountant), but the initial documentation request typically does not require professional credentials.
How long should I expect the process to take from request to resolution? From documentation request to initial response: 2-4 weeks is typical for a responsive property manager. From documentation receipt to completing a review: 1-4 weeks depending on complexity. From raising a dispute to resolution: anywhere from a few weeks (minor errors that are readily acknowledged) to several months (larger disputes requiring negotiation). Starting the process early in the audit window gives you adequate time.
Run your reconciliation and lease through CAMAudit to check for these patterns against your specific lease terms.