Quick Answer: What Does a CAM Recovery Audit Review? A CAM recovery audit reviews a landlord’s Common Area Maintenance (CAM) expenses to verify that operating costs billed to tenants comply with the lease agreement. Auditors compare the general ledger, invoices, and reconciliation statements against lease clauses to identify billing errors, misclassified capital expenses, incorrect pro-rata
For many commercial real estate portfolio owners and occupiers, Common Area Maintenance costs quietly sit in the background. They appear as annual reconciliations, supporting invoices, and summary statements that often feel too complex or time-consuming to challenge. Over time, these charges become accepted as a cost of doing business. That acceptance can be expensive. CAM
A CAM (Common Area Maintenance) recovery audit is a systematic review of tenant charges for shared property expenses to identify and reclaim overpayments. This specialized service examines lease agreements, invoices, and operational costs to detect billing errors, misallocations, or non-allowable charges, ensuring tenants pay only their accurate proportional share of legitimate common area expenses. What
Introduction Common Area Maintenance (CAM) charges are a fundamental aspect of commercial lease agreements, ensuring shared spaces are maintained and operational costs are fairly distributed among tenants. However, 30% of CAM reconciliations contain errors, leading to financial discrepancies and disputes between landlords and tenants according to the Journal of Property Management. Professional CAM audit services