What are CAM charges?

And who can I charge those too? Is it just commercial properties or also residential properties?

Answer:

CAM charges stand for Common Area Maintenance charges. These are additional fees, above the rent, that the landlord charges their tenants to cover a variety of expenses ranging from property taxes, snow removal, to any repairs and renovations in common areas such as entrances, etc.

CAM charges are generally calculated in one of two ways.

1. Variable CAM charges: the amount varies based on factors such as the amount of space rented.
2. Flat CAM charges: the amount is fixed.

CAM charges are generally paid on a regular basis, often with the rent. Although it's possible to receive additional CAM charges such as when a major repair or renovation is performed.

CAM charges can also increase at different rates than your rent, which is why it's just as important to negotiate your CAM charges as it is to negotiate your rent.


Views: 1855        Posted on: Apr 10 2012        Tags: Definitions, Rental, Accounting