Traditional turnover clauses often capture only sales at the till – less VAT and returns. Yet today’s occupiers generate income through multiple channels: membership fees, supplier marketing rebates, placement income, and app-driven transactions that bypass the premises entirely. When these streams sit outside lease definitions, landlords lose portfolio visibility, and occupiers risk governance friction.

A turnover lease is a rental agreement where part or all of the rent is based on the tenant’s economic performance — often linked to sales, but increasingly reflecting broader indicators of value. This model aligns landlord and tenant interests, especially in retail, by sharing both risk and reward.

Turnover leases often include base rent plus a percentage of turnover, and may contain clauses for auditing, dispute resolution, and supplier income. But the true economic value of a leased space can extend beyond the cash till — especially in high-footfall, high-impact locations.

Importantly, definitions of turnover may go beyond the POS till. They can include:

• Supplier rebates and promotional income
• Online sales attributed to the store
• Concession income and subletting arrangements
• Gift card redemptions and loyalty scheme revenue
• Membership attribution
• Centralised App income

Understanding these nuances is key to a fair and accurate audit, and to fostering win/win outcomes that reflect the full contribution of a retail space to tenant success and landlord value.

Turnover rents are reshaping retail leasing. But with complexity comes risk and opportunity:

• Improving clarity and transparency
• Supporting stronger landlord–tenant relationships, Win/Win
• Identifying process and control improvements

Where discrepancies arise, we report them objectively so management can assess implications and take action. All work is performed under strict confidentiality and ICAEW ethical standards – our role is to provide clarity, not opinions or negotiation advice.

Agreed-Upon Procedures for Turnover Leases

We take information protection seriously. Our audit processes are designed to safeguard sensitive financial and operational data using secure, enterprise-grade platforms that meet SOC 2 and GDPR compliance standards. These platforms offer:

• Robust encryption to protect data in transit and at rest
• Granular access controls to ensure only authorised users can view or edit information
• Audit trails to track activity and maintain accountability

Combined with our ICAEW-registered status, these safeguards ensure our work is conducted with the highest levels of professionalism, confidentiality, and independence. Giving both landlords and occupiers confidence in the integrity of the audit process.

Occupiers should expect a process that is transparent, fair, and designed to support long-term alignment. Our audits are:

• Advance Notice: Scheduled flexibly to suit tenant availability.
• Remote-Friendly: Conducted electronically to minimise disruption.
• Clear Guidance: Supported by a list of required records and ongoing assistance.
• Professional: Delivered by independent, qualified accountants.
• Constructive: Findings are shared before finalisation, with opportunities to clarify or correct.
• Forward-Looking: Where discrepancies arise, we help occupiers improve future lodgements and build trust with landlords.

In addition, occupiers benefit from:

• Clarity and Confidence: A clear view of how turnover rent is being calculated and reported.
• Process Improvement: Identification of areas where reporting can be strengthened.
• Constructive Dialogue: A collaborative approach that supports long-term partnerships.
• Governance Support: Independent assurance that lease terms are being followed.
• Future Accuracy: Support to ensure future lodgements are correct and aligned with lease definitions.

More asset managers and internal audit teams are asking for independent checks on turnover rent declarations – not just to catch errors, but to gain clarity, consistency, and confidence across portfolios.

At Calmsulting, we’re supporting this shift with ICAEW-registered independent turnover rent audits, helping make lease arrangements clearer, more consistent, and easier to work with. These reviews reinforce governance, improve transparency, and build trust between landlords and occupiers over time.

Many landlords assume that an accountant’s certificate of annual or quarterly turnover is sufficient. In some cases, it is – but not always.

As specialists in turnover rents, we often find that:

• Business structures evolve — new entities, reporting lines, or operational models may affect how turnover is calculated.
• Leases get refreshed — updated clauses or rent mechanisms may not be reflected in legacy calculations.
• Definitions vary — promotional income, concessions, and supplier rebates may be excluded unintentionally.

An independent turnover rent audit helps ensure that what’s certified aligns with the lease and current business realities.

A turnover lease audit doesn’t just validate numbers, it helps improve the way leases are managed and understood. Our reviews often highlight:

• Improved Accuracy: Detect understatements or misclassifications in turnover reporting.
• Enhanced Trust: Strengthen landlord-tenant relationships through transparency and fairness.
• Constructive Collaboration: Resolve discrepancies and alignment.
• Operational Insights: Highlight areas for process improvement and training.
• Governance Confidence: Support internal audit and compliance teams with independent assurance.
• Consistency Across Portfolios: Standardise interpretation of turnover clauses across assets.
• Clarity for Tenants: Findings help landlords communicate obligations without sharing tenant-sensitive data.
• Efficiency for Asset Managers: Reduce time spent chasing information through clearer, fact-based reporting on agreed procedures.

Our services best serve landlords, asset managers, and internal audit leads responsible for high-performing retail environments, where tenant performance is closely monitored, footfall is meaningful, and lease structures benefit from clarity and alignment.

These are settings where transparency matters, and where both parties benefit from a shared understanding of the economic value generated within the leased space.

Our clients include: