Keeping the Client’s Landlords “On Track” to Reconcile Their CAM Charges

Landlords typically charge escrow amounts monthly for building operating expenses/CAM and common area maintenance. These figures are based on an estimated budget for the property, often provided at the end of a calendar year. They are expected to be “trued up”, or reconciled, the following calendar year. The problem is that not all landlords provide the backup billing history needed for tenants to accurately reconcile, some landlords provide no reconciliation statement at all. In many situations the expenses come in under budget and tenants are owed a credit. In our experience roughly 25% of landlords do not reconcile unless proactively requested by the tenant.