What Can't Legally Be in Your CAM Charges
CAM is meant to cover the shared operating costs that benefit all tenants — landscaping, parking-lot upkeep, common-area utilities, security. It is not a catch-all for the landlord's overhead. Here's what generally should not appear in your CAM reconciliation.
Capital improvements
Structural work and major replacements (roof, repaving, building systems) are typically the landlord's cost, not routine maintenance — though leases vary in how, or whether, these are amortized.
Leasing commissions and tenant improvements
Costs to fill or build out other tenants' spaces benefit the landlord, not you.
The landlord's own legal and financing costs
Their attorney fees, loan costs, and disputes with other tenants aren't common-area items.
Vacancy costs
Expenses tied to empty units shouldn't be shifted onto occupied tenants.
Fees with no real cost behind them
Sophisticated leases require CAM items to be amounts "actually paid or incurred" — which blocks arbitrary percentage "fees" the landlord never actually spent.
The clause that protects you: the right to review records
Most commercial leases include a window (often called "audit rights") to request the landlord's supporting documentation after a reconciliation. It's time-limited — miss the window and you may lose the right — so know your deadline.
The principle to remember: if a charge isn't common, isn't actually incurred, or isn't allowed by your lease, it probably doesn't belong in CAM.
Start the free CAM cross-check →
Informational only; not legal advice and not an audit or attest service. ReCAM is not a CPA firm and these services are not regulated by the Texas State Board of Public Accountancy. © ReCAM Technologies LLC.