What is Reconciliation Statement?
The annual document landlords send tenants comparing estimated CAM charges collected during the year against actual operating expenses, showing credits or balances due.
Definition
A reconciliation statement is the annual document landlords send to tenants comparing estimated CAM charges collected during the year against actual operating expenses incurred. It shows the variance — either a credit owed to the tenant or an additional balance due — along with an itemized breakdown of expense categories and the tenant's pro-rata share calculations. The statement serves as both a billing document and a compliance artifact that tenants use to verify charges. Under California's SB 1103 and similar state laws, reconciliation statements must include specific disclosures and be delivered within defined timeframes. Late or inaccurate statements can extend tenant audit rights and undermine landlord credibility in dispute proceedings.
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