Common area maintenance (CAM) reconciliations are important as the money recovered is used to operate and maintain the property. Commercial property CAM reconciliation is complex, arduous and time-consuming task. It demands focused and meticulous review of multiple leases and accurate calculation of tenant share based on lease terms, granted modifications and other pre-determined expense caps.
The US Law defines CAM charges as the expense that a tenant is expected to pay up on a pro-rata basis towards the annual maintenance, repair and operation of common utility areas, as incurred by the landlord / property owner. In the real scenario, CAM charges are basically whatever the landlord has mentioned in the
Common Area Maintenance (CAM) and other operating expenses are carefully defined and included in the lease. While these clauses clearly outline the tenant expenses, more often than not real estate owners end up losing money due to incorrect reconciliation. Inaccurate CAM reconciliations can result in losses that can run up to tens of thousands of