For example, restriping the parking lot, replacing parking lot lights, landscaping, etc.
are things that would be covered under your CAM'S.
Typically when you pay your CAM'S the landlord uses this money for various things as described above and at the end of the year you either get a reimbursement or are charged more money because they went over budget on their repairs, etc.
I have found that most of the time I am hit with an additional expense to cover additional CAM Fees at the end of the year.
This is something that you will want to ask your landlord about.
Make sure they follow budget and you aren't hit with unexpected expenses at the end of the year.
An additional $1,000 or whatever at the end of the year can be very hard to come up with if you're a small business and watching every dime you spend.
So make sure you know what your CAM fees are going to be and even try to negotiate a clause in the lease that prevents you from getting hit with these fees.
You can negotiate things such as,
- A CAM Cap.
This way it helps prevent the landlord from going over-budget. - Designate who will pay how much for the landlords work on the premises.
For example, either you or the landlord will be the one paying for roof repairs, but be careful that if the landlord decides to delegate himself to pay for those expenses that he does not pass those on to you in the CAM fees. - Negotiate down management fees.
Management fees are pretty common and you should be aware of these.
They are usually something like 3-5% that the tenant will have to pay for property management.
It's important to ask about this fee and to be skeptical when the landlord tells you it's necessary to pay for salaries, overhead, etc.
This can be a very confusing aspect of the lease and you should be aware that these fees are there and make sure the lease states exactly what they are going towards.
If you do not feel the percentage is reasonable then try to negotiate it down some using your reasoning of why it's too high.