CAM Billing
Comprehensive Asset Management Billing Solutions
- Condensed Overview
- Quick Reference Guide
- Brand Recognition
CAM refers to Common Area Maintenance, and the processensures Landlord gets reimbursed for the upkeep and maintenance of the Building.CAM billing is important to ensure optimal conditions for the common areas. It plays a pivotal role in ensuring proper functioning while attracting foot falls to the businesses within the Property, if Retail.
CAM reconciliation, or CAM billing, is also known as Year-end reconciliation or billing. It is referred as Year-end billing since it also includes insurance and real estate taxes as well. These common areas refer to spaces other than the leased area – elevators, staircases, parking lots and the like. The list of expenses include services ranging from landscaping, repairs, garbage disposal and janitors. CAM billing can be leveraged to ensure money is adequately spent by both tenants and landlords.
Even though it looks straightforward – Landlords can apply (higher) Fixed PRS, minimum lease limit, Gross-up, exorbitant Management fees and apply Box Tenant concept of carve-outs while Tenants may have negotiated base year, exclusion, (lower) PRS, CAP and exclusion from few expenses.
CAM reconciliation presents great chances to boost the ROI – since, it is the 2nd largest revenue for the Landlord. You need to leverage these agreements with the help of professional consultants.
Streamlining CAM Billing
Backward Integration
During any migration of Property management system or during acquisition of Portfolios; we are involved in setting up the recovery based on the Lease language and the immediate prior year billing.Translation to facilitate abstraction. Due-diligence Abstracts to facilitate acquisition.Backward integration is a strategic move where a company acquires or merges with its suppliers or other entities in the supply chain that are situated earlier in the production process.
CAM Billing
Once the book of accounts is final for a respective year; we take up the billing. It may be either in excel spreadsheets or if recovery is already set in Property management system, will validate and generate the billing.Effective CAM billing is essential for maintaining transparency and fairness among tenants, The breakdown of CAM charges typically includes expenses for cleaning, security, utilities and general maintenance.
Forward Integration
We have come across situation like Landlord’s Property Accountant or the Property Management Company’s Accountant would have prepared the billing ensure accuracy in order to gain Tenant relations. Property Management Nonetheless, we take up dispute resolution on behalf of Landlord / Property Management Company. Tenant’s who have more branches have resorted to us for auditing the CAM statement and we come up with discrepancies that have huge monetary impact.