How This Calculator Works
Frequently Asked Questions
- What expenses are typically included in CAM charges?
- CAM charges typically include: landscaping and snow removal, parking lot maintenance and lighting, common area cleaning, security systems, property management fees, property insurance, and sometimes property taxes. In NNN leases, they can also include structural repairs and roof maintenance. Always request a detailed breakdown of what your lease includes in CAM before signing.
- What is a CAM cap and why is it important?
- A CAM cap limits how much your CAM charges can increase each year, regardless of actual expense growth. A 5% cap means your CAM costs can never increase more than 5% per year from the base year amount, even if actual building expenses skyrocket. Without a cap, your occupancy costs can become unpredictable and potentially unaffordable.
- Can I audit the landlord's CAM charges?
- Many leases include an audit right that allows tenants to inspect the landlord's expense records and verify that CAM charges are being calculated correctly. This right is valuable — studies show that CAM reconciliations frequently contain errors, and most errors favor the landlord. Exercise your audit right within any deadline specified in the lease, typically 12 months after receiving the annual reconciliation statement.