What is CAM Reconciliation?
The annual process of comparing estimated CAM charges collected from tenants against actual operating expenses incurred, resulting in a credit or balance due.
Definition
CAM reconciliation is the annual process by which a landlord compares estimated Common Area Maintenance charges collected from tenants during the year against actual operating expenses incurred. Tenants receive a reconciliation statement showing the variance — either a credit or a balance due — based on their pro-rata share of actual costs. Accurate reconciliation requires matching GL-level expense data against lease-specific billing rules including caps, exclusions, and gross-up provisions. Errors in this process are the leading cause of tenant disputes and audit findings in commercial real estate.
Related Resources
Validate Your CAM Reconciliations
CapVeri catches gross-up errors, cap violations, and billing mistakes before tenants or auditors find them — from your Yardi or MRI exports.
Start Free Audit