Tenant Environmental Audits
Environmental liability regulations have changed is recent years. Industrial and commercial lenders, property owners, property managers and tenants should be aware that they may unknowingly be exposed to financial liability for environmental contaminations over which they had no control. Existing environmental regulations dictate that financial damages may be assessed to both past and current tenants and property owners for residual environmental contamination. Property owners may in fact be held responsible for the environmental condition of a property without regard to fault, and even an innocent tenant could be named in a lawsuit to recover expensive environmental clean-up costs.
Tenant Environmental Audit Program
A tenant environmental audit (TEA) program can help protect clients from being involved in costly environmental clean ups. PPI in concert with Hazard Management Consulting conducts annual visual environmental audits of our client’s tenants and facilities. In performing these audits, PPI interviews the tenant and reviews products and procedures used by the tenant, especially in the areas of hazardous materials handling and disposal, pollution prevention, storm water management and surface water protection. The information gathered during the inspections allows us to increase the tenants' environmental awareness pertaining to issues such as regulations and best management practices. By conducting baseline audits, annual audits and exit audits we enable our client to know what is happening at the site and head off problems while they are small. Additionally, the environmental audit of the property is essential for either the property owner or the tenant to be eligible for the “innocent purchaser” defense under federal law. The audit information is available to you to review online. Should a concern be identified our staff and the experienced staff at Hazard Management Consulting will work with owners, property managers and tenants to resolve the environmental concern including any follow up inspections as needed.
PPI’s professional staff can provide you with the following TEA services:
Baseline Audits:
- Pre-purchase by a prospective owner.
- Before entering into a lease as a tenant.
- For owners who have a new tenant.
Annual Audits:
Are used as a pro-active tool to protect the lenders, owners and tenants of a property. This annual audit also sets a standard of environmental compliance for the tenant as they become aware that ownership takes environmental concerns seriously.
Exit Audits:
Are best conducted at least three months prior to the tenant’s departure date to allow sufficient time to manage any environmental issues that may be identified during the audit. The exit audit provides closure for both the owner and the tenant.
