THE PROBLEM
The Problem With Invisible Errors
Property management systems like Yardi and MRI do not validate billing configurations against lease language. They execute the configuration they were given. If a rent step was coded incorrectly at lease commencement, the wrong effective date, the wrong rate, the wrong escalation basis, the system will bill that incorrectly, consistently, indefinitely. There is no internal alert. No exception report. No signal that anything is wrong.
This is why discrepancy detection cannot be embedded in a property management system. It requires an independent layer that holds the lease-derived financial logic and compares it against what the PMS is actually producing. That comparison, systematic, continuous, and grounded in the lease document, is the function Firststreet's discrepancy detection engine performs.
When a discrepancy is detected, it is not merely flagged. It is quantified. The platform calculates the cumulative financial impact of the gap across the period it has been active, so teams understand the materiality of what they are looking at before they decide how to act.
DETECTION CATEGORIES
Categories of Discrepancies Detected
Firststreet's detection engine covers the full range of lease obligation types: missed escalation triggers, incorrect base rent amounts, CAM structures configured differently from the lease, exclusions that were omitted, gross-up provisions not applied, and CAM contribution caps that were never enforced.
The system also detects structural discrepancies, cases where the lease type itself was misconfigured in the PMS. A modified gross lease being administered as a triple-net lease can result in years of incorrect recovery billings.
Rent Execution Gaps
Missed escalations, incorrect step-up dates, base rent amounts that don't match the lease schedule, detected and quantified by period.
Recovery Structure Variances
CAM billings that diverge from lease-specified recovery methodologies, including cap violations, exclusion omissions, and gross-up failures.
Structural Misconfigurations
Lease type misclassifications and systematic configuration errors that produce consistent but incorrect billing patterns across the lease term.
Critical
-$87,400/yr
CAM cap never enforced, Unit 3B, recovery exceeds 15% cap
Active: 18 months
High
-$31,200/yr
Missed escalation, Unit 12A, step-up missed Jan 2024
Active: 14 months
Medium
-$8,600/yr
Gross-up not applied, Unit 6D, modified gross lease
Active: 8 months
PRIORITIZATION
Prioritized by Financial Impact
Not every discrepancy is equal. A missed escalation that has been compounding for 24 months on a 10,000-square-foot retail tenant has very different financial stakes than a minor proration rounding difference on a smaller lease. Firststreet's discrepancy detection output is prioritized by estimated financial impact, so teams know immediately which findings to act on first.
Each detected discrepancy is surfaced with its source, the lease clause from which the expected value was derived, so the finding can be verified against the original document before any tenant communication or billing correction. This chain of evidence is essential for collections, dispute resolution, and for demonstrating to ownership or investors that the finding is grounded in the lease itself, not a system-generated estimate.
