What is CAM reconciliation?

What is CAM Reconciliation?

CAM reconciliation involves calculating and adjusting the actual Common Area Maintenance (CAM) expenses incurred by a landlord over a specified period, typically a year, against the estimated charges paid by the tenants. This process ensures that tenants pay their fair share of the actual costs for maintaining common areas in a commercial property, such as shopping centers or office buildings, based on their lease agreements. If the actual CAM costs are higher than the estimated payments, tenants will owe additional money; if lower, they may receive a credit or refund.