Landlord's will, on an annual basis, send statements reconciling the previous year's operating expenses and bill the difference between budgeted and actual amounts.  You must ask your Landlord to provide you with detailed back-up information so you can compare figures for yourself.  Sadly, the majority of tenants pay the invoiced amount which is probably the only invoice paid without proper verification.  Most Landlords are honest but be certain to verify.

In reviewing the expense statement, pay attention to large percentage increases in expense line items.  If you question any of the charges, write to the Landlord challenging the operating expense.  Be aware that generally there is a specific time period in which a tenant can review the statement or perform an audit.  If your lease expired prior to the end of the year, you are most likely entitled to a refund if actual expenses were lower than estimated.  Also, keep in mind that operating expense participation survives the expiration of a lease.

If your Landlord appeals the real estate taxes for your building and is successful, a tax refund is issued to the Landlord the following year.

You are entitled to a pro rata share of the refund!

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Nothing contained herein is to be considered legal advice.  Always seek legal advice when evaluating any legal document.