If you’ve ever scratched your head reading through a Common Area Maintenance (CAM) reconciliation, you’re not alone. Whether you’re a tenant trying to understand your year-end bill or a landlord just trying to apply the lease language correctly, CAM can feel like a never-ending puzzle.
As someone who has reviewed hundreds (probably thousands) of CAM reconciliations—both as a landlord and now on behalf of tenants—I can confidently say: it’s not just you. CAM is a mess.
Here’s why, and what to watch out for.
🔍 Common Errors in CAM Reconciliations
Copy-Paste Template Syndrome
Property accountants are busy. During audit season, it’s common to recycle templates from one tenant to the next. But leases are not one-size-fits-all. What works for Tenant A might violate the terms of Tenant B’s lease completely.
Bad Math on Pro Rata Share
CAM expenses are usually shared based on square footage—unless the lease says otherwise (which it often does). Mistakes here can be small or massive, especially if anchor tenants or vacancies aren’t handled properly.
Capital Costs vs. Operating Expenses
Leases often exclude capital improvements unless they’re amortized and save operating costs. Many reconciliations charge them anyway—or lump them into vague ‘repairs’ accounts.
CAM Caps Applied Incorrectly
Cumulative? Non-cumulative? Compounded? Applied to total CAM or only controllable costs? The lease terms matter, but they’re often misunderstood or ignored completely.
Missed Exclusions
Some leases exclude legal fees, ADA compliance costs, above-standard management fees, or even specific taxes. If the person doing the reconciliation doesn’t read the lease closely, these costs get passed through anyway.
Tax Refunds Never Credited
If the landlord appealed real estate taxes and won, that refund should flow back to tenants. It often doesn’t.
Utility or Insurance Misallocations
Buildings with multiple tenants or uses sometimes misallocate shared expenses—especially if the cost pool includes unoccupied space or separate buildings.
Accounting Period Mix-Ups
Expenses from the wrong fiscal year, or missing accruals for year-end services, are common mistakes when rushing to finalize reports.
Management/Admin Fees Based on the Wrong Base
Is it 5% of actual costs? Total CAM? Net expenses? Each lease may define it differently—and many reconciliations just apply a flat rate with no backup.
🌀 Confusing CAM Lease Terms That Make It All Worse
The errors above aren’t always due to sloppiness. Many stem from lease terms that are vague, inconsistent, or just plain hard to interpret.
Here are some of the top CAM terms that confuse everyone:
| Term | Why It’s Confusing |
| Pro Rata Share | Could be based on RSF, exclusive-use areas, or a carved-out CAM pool. |
| Controllable Expenses | Not consistently defined—some leases include utilities, some don’t. |
| Capital Expenditures | Allowed in some leases only if amortized; others exclude completely. |
| Gross-Up | What does “95% occupancy” really mean for your bill? |
| Cumulative vs. Non-Cumulative Caps | One rolls forward year to year; the other resets—big difference. |
| Base Year vs. Expense Stop | Tenants may not know which costs they’re actually responsible for. |
| Operating Expenses | Often a laundry list—or worse, undefined. |
| CAM Pools | Multi-building sites sometimes have different “pools” with varying shares. |
| Amortization Schedules | Rarely included in backup, often misunderstood. |
| Administrative Fee | Is it flat, layered, or based on a percentage? And of what? Good luck figuring it out. |
🎯 Who Needs a CAM Audit?
Tenants:
If you’re a small business, even a $2,000 error matters. You shouldn’t be stuck paying for things your lease doesn’t allow. We help make sure you aren’t.
Landlords:
Getting CAM right helps you avoid disputes, preserve tenant relationships, and stay compliant with the lease. If you inherited a building with legacy leases and mystery spreadsheets, we can help clean it up.
✅ Final Word
Most CAM reconciliations aren’t intentionally wrong—they’re just done under pressure and based on assumptions that don’t hold up to your lease. Whether you’re a tenant protecting your bottom line or a landlord trying to do it right, a second set of eyes can save real money and future headaches.
We review CAM reconciliations from both sides—tenant and landlord. Because we’ve lived both sides.
Want us to take a look at yours? Get in touch → CamAuditServices@gmail.com
About CAM Audit Services
CAM Audit Services is a passion project founded by a seasoned real estate CFO who also holds CPA and CFA credentials. After reviewing hundreds — if not thousands — of CAM reconciliations over the years, it became clear just how often these calculations are done incorrectly, overlooked, or misapplied. What started as a niche expertise has grown into a mission: to bring order to the chaos, clarity to the numbers, and fairness to tenants and landlords alike.
We specialize in reviewing Common Area Maintenance (CAM), Insurance, and Real Estate Tax pass-throughs — line by line, lease by lease. Whether you’re a tenant looking for transparency or a landlord wanting to ensure accuracy, we’re here to help make sense of it all.
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