CAM reconciliation estimates the property and common area expenses at the end of the year to reconcile the actual charges. The process is about making sure the tenants reimburse the common area expenditure to match the actual expense incurred by the property manager or landlord during the preceding year.

The main advantage a landlord, property owner, or property managers attain from outsourcing their CAM reconciliation process is extended support from experienced professionals, accurate property operating expense evaluation, and a good relationship with tenants through appropriate CAM billing.

Property managers estimate the annual CAM budget based on the previous year's expenses and other marketing factors. Based on the pro-rata share of the tenants, the landlords divide the annual budget into small installments, which are required to be paid by tenants throughout the year.

You can reconcile the CAM charges by adding all the property's operating expenses incurred throughout the year and reconciling the value against the estimated CAM charges billed for the tenants.

The commercial building CAM expenses include: Property administrative expenses, parking lot, water tax, property insurance and taxes, electrical cost, trash removal, pest control, commonly shared ventilation system, and building staff salary expenses.

No. A proper CAM audit will create confidence and a good relationship between landlord and tenants. A well-experienced commercial lease auditing firm helps make well-documented claims that neither affects landlords nor tenants.

A base year audit is usually conducted two years after completing the first year of the lease. The base year audit depends on which the upcoming audits are estimated and based on which certain adjustments are made in the audit.