CAM SERVICES FOR COMMON AREA MAINTENANCE CHARGES
TAILOR MADE SOLUTIONS FOR LANDLORDS AND TENANTS
Charges for common area maintenance (CAM) are a key component of lease
agreements. These escalations change from year to year and are dependent
on the various services included and/or excluded from leases and the extent of
expenses incurred by the landlord. This variable often generates unexpected
surprises and can create conflicts in the landlord-tenant relationship.
At WithumSmith+Brown, PC (Withum), our knowledgeable real estate
professionals in the CAM and Lease Audit Services Group can put both the
tenant and the landlord at ease when it comes to one of the major unknowns of
landlord-tenant relationships.
Popularly called LEASE AUDITS or CAM AUDITS, Withum offers personalized
solutions that are tailor made for your particular circumstances.
Withum’s approach towards CAM charges works for both
Landlords and Tenants.
REAL ESTATE SERVICES LEADERSHIP
Rebecca Machinga, CPA, CGMA
Partner, Practice Leader
T (609) 520 1188
[email protected]
Anupam Goradia, CPA, CISA, CITP
Team Member, CAM Services Coordinator
T (732) 828 1614
[email protected]
BE IN A POSITION OF STRENGTH
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withum.com
WHAT MAKES ACCOUNTING FOR
CAM CHARGES SO COMPLEX?
CAM escalations can involve complex
calculations of base year costs, real estate
tax true ups, effects of property tax appeals,
impact of other tenant move outs and move
ins, occupancy ratio and so on.
At Withum, our suite of services for CAM charges can serve both landlord and tenant
and bridge the expectation gap on both sides.
OUR SERVICES INCLUDE:
• An independent review of accounting records of a property
• An in-depth review of the calculations of common area charges to ensure that charges are allowable and properly
calculated in accordance with leases
• Verification of not just the math, but the support behind expenses and their validity
• A customized approach to address the concerns of all parties involved
• A comprehensive report identifying our observations, results and recommendations, facilitating efficiency and confidence
in CAM calculations for years to come
A GLIMPSE OF OUR CAM SERVICES:
FOR THE LANDLORD
Landlords can be subject to time consuming audits and inquiries
from tenants. Withum can help eliminate this inconvenience
and demand on your limited personnel resources by performing
CAM services for your organization. A pre-emptive independent
verification of the CAM statements accompanied by a
comprehensive yet concise report issued on our letterhead can
be distributed to tenants. This can help prevent multiple tenantinitiated audits and inquiries and result in significant savings for
you and/or your property manager’s staff.
Our experienced professionals can work directly with your staff
or property manager’s staff to review lease agreements and
accounting records to ensure no significant costs are missed or
mistakenly charged.
We can train your staff to perform CAM reconciliations for
particular leases and review their calculations and results.
FOR THE TENANT
We provide access to your landlord’s accounting department
which would not be otherwise possible as most landlords do
not allow tenants direct access. Landlords usually allow only
independent third parties to visit their or their agent’s premises.
An independent verification over landlord records and underlying
support ensures charges are valid, accurate and in accordance
with the lease.
SERVICES FOR BOTH LANDLORD AND TENANT
We can collaborate with your real estate attorneys or other
professionals to review the text of the lease concerning the
nature and calculation of CAM charges and their verification
with a view to ensure clarity in the agreement that could avoid
potential conflict down the road.