Separate repairs, replacements, and reserves
Read the substance of the cost rather than the statement label. A recurring repair, a full replacement, and a reserve contribution may have different treatment.
Test every recovery condition
If the lease permits recovery, verify useful life, amortization period, interest, in-service date, tenant share, and any limit based on anticipated savings or legal compliance.
- Invoice and project scope
- Capitalization and depreciation schedule
- Amortization calculation
- Rebates, insurance proceeds, and reimbursements
- Operating savings support
Question the amount, not just the category
A permitted project can still be billed too early, too quickly, twice, or without reducing reimbursements. Ask for the schedule needed to reproduce the annual charge.