Negotiate Four Key Items in CAM Reconciliation Clause

If your lease requires you to pay annual common area maintenance (CAM) costs or operating expenses based on estimates that the owner calculates at the beginning of the year, you should be aware that, although this seems like a simple process in theory, in practice there are many pitfalls for tenants in this situation. Under this CAM arrangement, at the end of the year, the owner must give you reconciliation items—such as a reconciliation statement and proportionate share calculation—that show the actual CAM cost or operating expense amount.

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