Let’s be honest: if you’ve ever stared at a year-end reconciliation of Common Area Maintenance (CAM), Insurance, and Real Estate Taxes and thought, “What in the world am I even looking at?” — you’re not alone. The truth is, there’s a lot of confusion around these charges, and most of it isn’t your fault.
I’ve seen this from every angle — as a tenant, as a landlord, and now, as someone who’s made a career out of digging into these messy reconciliations. So, let me break down why this stuff gets so complicated… and why you might want to take a closer look at what you’re being billed.
1. The Lease Language Is a Maze
Every lease is a little different — and sometimes a lot different.
You might see terms like “cumulative cap,” “non-cumulative cap,” “capital expenditure exclusions,” or “administrative fees” that are buried in legal jargon. These small differences can have a big impact on what you’re actually supposed to be paying.
So what happens? People make assumptions. Or worse, they just copy what they did last year and hope nobody notices.
2. The Reconciliations Are Rushed (and Sometimes Wrong)
Most CAM reconciliations are thrown together by property accountants, who are often working on 10 other things — usually during year-end crunch time when everyone’s trying to close the books and prep for audits.
Many times, the accountant will just use a template that was built for another tenant — one with a completely different lease. That means charges that should have been excluded suddenly show up. Admin fees might be double what’s allowed. Or that 5% cap? Ignored entirely.
And the worst part? These errors usually don’t come from bad intent. It’s just the reality of a high-pressure, fast-moving accounting department trying to get hundreds of statements out the door.
3. The Accounting Isn’t Always Clean
Here’s another layer of the chaos: the building’s own books might be wrong.
Maybe a capital expense (like a new roof) got run through as a regular repair. Maybe something that had nothing to do with CAM — like leasing commissions — ended up in a CAM account by mistake. Or maybe there was a real estate tax refund the landlord got but never credited back to the tenants.
These aren’t wild conspiracy theories. These are things I’ve seen a lot. And unless someone’s digging into both the lease and the actual general ledger, it’s really easy to miss.
4. What’s “Small” to a Landlord Might Be a Big Deal to a Tenant
Most landlords are looking at CAM charges across an entire building. If the error is a couple thousand bucks, it barely moves the needle. But for a small business tenant — maybe someone running a warehouse, a shop, or a service business — that extra $2,000 or $3,000 matters. That’s payroll. Or marketing. Or rent for a second space.
The problem is: many tenants don’t realize they have the right to review or challenge these charges. And landlords often assume “no news is good news.”
So What Can You Do?
If you’re a tenant: ask questions. Read your lease (or get someone who can). Don’t be afraid to request a breakdown. You’d be shocked how often that alone can uncover issues.
And if you’re a landlord or property manager: invest the time to match your reconciliations to each specific lease. One-size-fits-all templates are a shortcut to future headaches.
If this stuff gives you a headache — you’re not alone. I do CAM audits because I’ve lived through the chaos from all sides and genuinely want to help businesses avoid overpaying. If you ever want a second set of eyes, or just someone to decode what the heck your statement means, I’m here.
Let’s make sense of the nonsense.
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Need help with your CAM reconciliation or want someone to review your lease terms? Drop me a note at 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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