Reconciling CAM: How to Steer Clear of Typical Traps

If you manage a property in a busy location, such as a plaza or shopping center, you probably have multiple tenants. It is customary to charge a different rental cost to each person who uses your facilities. It’s important to keep in mind that maintaining the property entails additional expenses and may cause you to reforecast budgets.

Tenants are responsible for covering the costs of upkeep and repairs for the leased spaces on the property through a monthly fee known as common area maintenance (CAM). The annual CAM fee is included in the lease and is determined by the landlord using the expenditures from the prior year. While modifications made by tenants to the property are considered improvements made by them, utilities are an obligatory expense. 

Tenant CAM expenses might vary from year to year, so a CAM reconciliation is required to identify any discrepancies and guarantee appropriate payments. The intricacy of filling out annual reports rises with the number of renters, which is a task that many landlords find difficult. You face the risk of making inaccurate expense and revenue estimates, which could result in losses instead of potential gains.

By first being familiar with some of the most typical worries about the reconciliation process, you may reduce your stress and gain the trust of your renters. It might be difficult to keep track of your expenses on your own, so using a second source to do so might be a smart option.

Even though overseeing a large number of tenants may seem overwhelming, you shouldn’t let it deter you. It’s simple to maintain rental agreements and determine how much money to recover after reconciliation with Kardin’s online budgeting tools.

Cost Modifications

While it may appear time-saving to write up the leases for the current year using the final totals from the previous year, doing so frequently leads to an overestimation of the actual capacity available this year. Maintenance service expenses are comparable to other yearly expenses that we have to pay. 

Instead of hurrying to quit your contracts, watch for patterns in rent rises. While some of these differences might not be significant, others might be so that they make settling the year’s books more difficult. If the total sum is less than anticipated, paying the renters is typically easier than requesting additional funds. 

To compare the lease conditions, make sure you have the numbers from the previous year. You may reduce the amount of paper you consume and preserve data by using Kardin Systems. This keeps them protected and allows them to budget for future CAM expenses without depending on outside funding. 

Split the Costs

There will always be expenses that are the exclusive responsibility of one tenant, even though this isn’t always the case. It may be difficult to do maintenance duties like asphalt installation or landscaping when numerous tenants share a place. Regardless of who brings up the issue first, all renters share in the expense of repairs.

If a pool is created to manage shared expenses, it’s easier to keep some expenditures out of the contracts of other tenants, so take that into account when figuring out CAM charges. Don’t put all of your money down for one lease. Throughout the reconciliation process, the other renters must make up for any renters who only pay that bill once a year. 


The CAM reconciliation procedure is not something you should speed through because doing so raises the possibility of errors that may impact the final amounts owing to tenants and the precision of your reforecast budgets for the upcoming year. Everyone’s CAM reports will be correct and submitted on time thanks to scheduled completion dates. 

To avoid receiving a year’s worth of data at once, ask renters for monthly reports in the same way that rent is collected. It may also assist you in identifying any recurring themes in the tastes of your tenants for the upcoming year.

You can potentially save time on calculations by visiting the Kardin Systems website, as their team does these tasks. They’ll be able to react quickly and lower the chance of error with a reaction time of less than a few weeks. 

Easy Information Record-Keeping

This demonstrates that a significant issue with CAM reconciliation is misplaced or forgotten records and expenditure histories. Any issue that arises will either effect you or one of your tenants. Just because you’re more concerned with getting rent each month doesn’t mean you should neglect CAM reconciliation. 

The Planning Platform for Kardin Systems Is Helpful

You won’t have to worry about taxes or audits on top of everything else you have to do if you use the Kardin Systems planning platform for your annual budget. Initially, you will provide them the data they require to monitor each tenant’s expenses; after that, every month, they will assist you in monitoring those bills, breaking down the costs so you can quickly print a copy in case you need to contact a renter. 

Property managers have been using their methods for more than 25 years since they make budgeting easier and provide reliable figures. Everything is foreseeable, and things may be added or withdrawn right away if needed.

Kardin Systems also provides you with a number of tools to help you understand their website and the terms of your agreements. You take over their workforce and gain access to hundreds of training DVDs that could teach you more effective methods for tasks like CAM reconciliations and fast budgeting. In the midst of the busy final days before the deadline, they also offer checklists to assist you keep prepared and not forget anything. The goal of collecting CAM fees is to safeguard the asset you have rented to tenants. Over the course of the year, each person will have spent their hard-earned money on a range of services that could have been difficult to find. Your renters may be satisfied enough to sign a one-year lease renewal with you if you use Kardin Systems to optimize your procedures and lower the amount of errors in your reports.