Common area maintenance (CAM) is one of the most contentious clauses in a commercial lease contract. Tenants are mostly on guard regarding the expenses charged under CAM costs. As such the process of reconciling these expenses demand time, meticulous attention, and a thorough understanding of the clause and the type of expenses that can be categorized under this head.
With the commercial real estate landscape evolving rapidly characterized by shifting trends, newer business models, and a complex and variety of lease types – CAM reconciliation is turning out to be a tedious, complex, arduous, and time-consuming task.
Given the challenging requirements, many players are increasingly outsourcing CAM reconciliation to not just overcome the challenges but also streamline the process. Take a look at the top three reasons why outsourcing CAM recon services is becoming a go-to strategy for real estate players.
Access to specialized and professional resources
Any financial process demands professional skills for it to be handled efficiently. The primary and key advantage of outsourcing is easy to access to a trained team of professionals that helps you improve process efficiency and get the desired result. And all this without having to invest in training and retaining in-house and equipping them with necessary tools. With an experienced team at your disposal, you can adapt and drive operational efficiency, and meet your business-specific objectives.
Better business outcomes and improved profitability
CAM reconciliation makes up for the operating cost and as such, it is key to ensuring not just ROI but that your property value is maintained and is profitable for you. Inaccurate CAM billing can hurt the business significantly severely impacting the bottom line. Outsourcing can help you avoid these challenges, by streamlining the process of CAM reconciliation and billing, maximizing recovery while ensuring adherence to the lease terms. Accurate and timely CAM reconciliation helps improve profitability and maintain asset value.
Significant cost saving
By outsourcing, you get access to trained resources, specialized tools, skillset, and established processes at a fraction of a cost without having to invest in recruiting, training, and retaining in-house resources. Cost-saving has always been a primary factor that has been fueling the growth of outsourcing and continues to remain one of the top reasons. You get to leverage the service provider’s capabilities in a cost-effective manner to your business advantage.
At Springbord we have been helping real estate clients from across the globe manage CAM reconciliations effortlessly, while maximizing recovery and ensuring compliance. To know more about our CAM reconciliation services, connect with us today!