CAM Reconciliation: A Property Manager's Trickiest Tasks
Information taken from Bisnow.com. Link to full article below.
CAM reconciliation can be intimidating for property managers who haven't been through the process before, and they very rarely get training on this topic from property management companies. To avoid getting caught off guard, property managers can learn what CAM covers and what it doesn't.
Whereas, shared utilities like water and electricity are shared by tenants, capital improvements to extend the life or value of the property are not CAM items. However, once installed do fall under the reconciliation.
There are many ways to determine the appropriate CAM share one idea is have a tenant pay nothing for the first 12 months at the property and paying a higher share on the 13th month. Another method is an expense stop which the owner pays a certain amount of dollars per square foot and then the remaining costs are covered by tenants.
Transparency on the CAM reconciliation is key to avoid any disgruntled tenants over surprise costs or incorrect billing at the end of the year, likewise to over burden the owner or landlord.
Read The Full Article Here: CAM Reconcilitiation: A How-To Guide On One Of Property Management's Trickiest Tasks