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CAM Reconciliation
The annual calculation reconciling actual shared building operating expenses against estimated monthly payments billed to commercial tenants.
CAM (Common Area Maintenance) reconciliation is the annual true-up process where a commercial property manager calculates actual operating expenses incurred for shared areas against estimated monthly amounts billed to tenants during the fiscal year.
The reconciliation determines whether tenants owe additional funds (an under-bill) or are entitled to a credit (an over-bill) according to their pro-rata lease share.
Commercial CAM Reconciliation & True-Up Lifecycle
Standardized annual cost recovery, expense cap audit, and tenant true-up sequence
Frequently Asked Questions
When should commercial CAM reconciliation be completed each year?
Industry best practice is to complete and distribute CAM reconciliations within 90 to 120 days after the close of the calendar or fiscal year, allowing property accountants to audit final vendor invoices and utility true-ups.
What happens if a tenant disputes a CAM reconciliation billing?
Most commercial leases grant tenants a 30- to 60-day audit window to review property accounting records. If an error is verified, the landlord issues an immediate credit memo or revised billing statement.
More in Accounting & Finance
See all Accounting & Finance terms →Additional Rent
Charges billed to a commercial or residential tenant beyond base rent, including CAM reconciliations, property taxes, insurance, and late fees.
Read definition →Bad Debt Reserve & Delinquency Aging
The accounting methodology categorizing past-due receivables into 30/60/90-day aging buckets and provisioning an allowance for uncollectable rent.
Read definition →Base Year & Gross Up Provision
A commercial lease provision adjusting variable operating expenses to reflect 95-100% occupancy to ensure equitable pass-through billings.
Read definition →CAM Audit Rights & Tenant Expense Objections
Contractual clauses permitting commercial tenants to inspect landlord invoices and ledger records supporting annual CAM true-up charges.
Read definition →