What is Tenant-in-Common (TIC)?

Definition

A tenant-in-common (TIC) arrangement is a form of property co-ownership where two or more parties hold undivided fractional interests in the same property. Each co-owner has the right to use the entire property and is responsible for their proportionate share of operating expenses, property taxes, and maintenance costs. TIC structures add complexity to CAM reconciliation because operating expenses must be allocated not only to tenants but also among co-owners based on their ownership percentages. The TIC agreement typically specifies how expenses are shared, who manages the property, and how decisions about capital improvements are made. Property controllers managing TIC properties must maintain separate accounting for each co-owner's share of expenses while still producing accurate tenant-facing reconciliation statements.