Playbook: How to Audit Your CAM Charges

Why CAM Audits Matter

If you lease space in a retail center, office building, or industrial park, chances are you’re paying CAM charges, short for Common Area Maintenance. These are expenses landlords pass through to tenants for things like landscaping, parking lot upkeep, janitorial service, and property management.

The problem? CAM charges are rarely transparent. Many small businesses and nonprofits accept the bill without question, assuming it’s accurate. But landlords sometimes misallocate costs, include non-reimbursable items, or simply make errors. Over time, those mistakes add up.

Just as important as understanding what you’re being charged is knowing when to review it. Most leases require the landlord to provide an annual CAM reconciliation within 90–120 days after year-end. Tenants then typically have 30–180 days to dispute or audit the charges. Miss that window, and you may lose the right to challenge them entirely.

Auditing your CAM charges on time isn’t about being adversarial—it’s about protecting your bottom line and ensuring you only pay your fair share. This playbook will show you how to do that step by step, with a process you can repeat each year to stay in control of your costs.

Step 1: Understand What CAM Charges Cover

Before you can audit, you need to know what you’ve agreed to pay. Your lease is your roadmap.

Look for these sections:

• Operating Expenses / CAM Charges clause – defines what costs can be passed through.
• Exclusions list – lists costs the landlord cannot pass through (e.g., capital improvements, debt service, leasing commissions).
• Proportionate Share formula – explains how your portion is calculated (often based on square footage).

Pro Tip: If your lease doesn’t clearly list exclusions, assume the landlord may try to include more costs than you expect. This is one of the most common sources of disputes.

Step 2: Collect the Right Documents

You can’t audit without paperwork. Request a CAM reconciliation package from your landlord or property manager, ideally within 90 days of year-end.

Ask for:

• Annual CAM statement (summary of expenses vs. estimates you paid).
• General ledger detail (line-item breakdown of costs).
• Invoices or vendor contracts (to verify charges).
• Rent roll (to confirm how costs are being shared among tenants).
• Your lease and any amendments.

Step 3: Verify the Math

Landlords often estimate CAM charges monthly, then reconcile at year-end. Mistakes happen.

Audit steps:

1. Compare actual expenses to estimates. Did you get a refund or owe a true-up?
2. Check your proportionate share. Is the square footage correct? Were vacant spaces excluded or misallocated?
3. Look at year-over-year trends. Did CAM suddenly jump 20%? If so, find out why.

Rule of Thumb: Normal CAM increases should track inflation plus modest cost growth (3–5% per year). Anything beyond that warrants investigation.

Step 4: Review Allowable vs. Non-Allowable Costs

This is where many overcharges happen.

Watch for non-reimbursable expenses that should NOT be included:

• Landlord’s debt service or loan payments
• Capital improvements (e.g., new roof, unless amortized and allowed by your lease)
• Leasing commissions or legal fees for new tenants
• Marketing costs for the property
• Landlord’s corporate overhead

Examples of valid CAM charges could include:

• Landscaping and snow removal
• Janitorial services for common areas
• Utilities for shared spaces (lighting, HVAC in lobbies)
• Security services
• Property management fees (reasonable, usually capped at 3–5%)

Pro Tip: Compare the charges to your lease’s exclusions list. If your lease is silent, push back on anything that feels outside “maintenance” or “operation.”

Step 5: Spot Red Flags in CAM Statements

Even if you don’t dig into every invoice, you can quickly spot problem areas.

Red flags include:

• Unexplained year-over-year spikes (utilities up 40%, landscaping doubled).
• Vague categories like “miscellaneous” or “other operating costs.”
• Management fees over 5%.
• Repairs that look like replacements. A resurfaced parking lot may be maintenance, but a full repaving is usually capital.
• Double-dipping. Example: landlord bills separately for “administrative costs” and “management fees.”

Step 6: Communicate and Negotiate with Your Landlord

Once you’ve identified potential issues, don’t assume bad intent. Many landlords outsource property management, and mistakes happen.

Approach the conversation professionally:

• Send a written request for clarification on specific charges.
• Reference your lease language when disputing a cost.
• Ask for supporting invoices if a charge seems inflated.
• If appropriate, request an adjustment or credit.

Pro Tip: Keep everything documented in writing. This creates a record if you need to escalate.

Step 7: Know When to Bring in Professionals

If your CAM charges are significant or if your landlord resists transparency, it may be worth hiring outside help.

Options include:

• Tenant-side real estate attorney – to enforce your lease rights.
• CAM audit specialist – firms that review statements and often work on a contingency basis (taking a % of savings they recover).
• Broker or advisor – to benchmark your charges against market norms.

Conclusion: CAM Audits = Tenant Leverage

CAM audits aren’t about nickel-and-diming your landlord. They’re about ensuring fairness, protecting your operating budget, and making sure you’re only paying for what your lease actually requires.

Key Takeaways:

• Start with your lease; know what’s allowed vs. excluded.
• Always request supporting documents and verify the math.
• Watch for red flags like vague categories, big jumps, or double-dipping.
• Communicate professionally, but be firm when you find errors.
• Bring in outside help if needed, especially on large or recurring discrepancies.

By making CAM audits part of your annual routine, you’ll avoid overpaying and gain leverage in negotiations when renewal time comes around.