This may include repairing cracks, resurfacing, repainting lines, and parking lot lighting. However, there are some costs that can generally be expected. These charges can be limited to a few specific items or can be much broader, covering all the expenses on the property.

The exact costs included in CAM charges are completely dependent on the specific lease that a tenant and landlord agree on. What's included in CAM?ĬAM charges normally include all the costs of repairing, maintaining, and cleaning the common areas of a leased property. This ensures the tenant will have a clean, well-maintained space. Passing these costs on to the tenants tends to make landlords less reluctant to keep up with maintenance. Some landlords will put off certain maintenance and repairs if they have to bear the cost themselves. On the other hand, CAM fees can be a benefit to the tenant. While the landlord gets protection from fluctuating costs, the tenant may end up taking a hit when expenses rise. This gives the property owner some protection from increases in costs so the property's return on investment isn't greatly impacted.įor tenants, CAM charges can be scary. The costs that are included in CAM fees can vary from one market to another, and even locally from one landlord to another.Īdding CAM charges is typically a benefit to the landlord, because it allows them to be reimbursed for certain costs associated with owning and managing the property. In conversation, you'll likely hear these charges simply referred to as 'CAMs.' Unfortunately, there's no universal agreement on what exactly CAM charges include. These maintenance costs can be related to any cost of managing and maintaining the commercial property.

What are CAM charges?ĬAM charges are the costs of common area maintenance that landlords pass on to their tenants. They're an important part of a real estate lease and have a significant impact on the property's net operating income (NOI) and the amount a tenant will pay to occupy the space.

You'll likely hear CAM charges discussed when talking about a commercial real estate lease and the costs associated with that lease.

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