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Seasonal Guide

Q3 Budget Season: Setting Next Year's CAM Estimates

CAM estimates set in Q3 determine what tenants owe at next year's reconciliation. Accurate estimates reduce disputes later.

Q3 budget season (July through September) is when commercial landlords set CAM estimates for the following year. These estimates determine monthly tenant payments for 12 months. The difference between estimates and actuals becomes the year-end settlement. Setting estimates too low creates large underpayment settlements. Too high creates overpayments and tenant frustration. The goal is accuracy.

Key Dates (5)

Date / TimeframeWhat Happens
July-AugustReview current year actuals through June, identify trends
August-SeptemberBuild next year's expense budget by category
September 30Finalize estimates for properties with October 1 estimate anniversaries
October-NovemberIssue estimate letters for calendar-year properties (January 1 effective date)
December 1Deadline for issuing most calendar-year CAM estimate letters

Phase Checklist (8 items)

Pull current year actuals through Q2 as the estimation base
Identify known expense changes: vendor contract renewals, new vendors, property improvements
Adjust for known one-time items from current year that won't recur
Review property tax assessments for next year. Increases flow directly to CAM.
Check utility rate changes for your jurisdiction
Review lease requirements for estimate letter format and delivery timing
Calculate estimated pro-rata shares based on expected occupancy
Issue estimate letters within the lease-required advance notice period

Common Mistakes

1Using prior year actuals without adjusting for known changes, which produces stale estimates
2Missing lease deadlines for estimate letter delivery, which can create billing disputes
3Setting estimates based on budget targets rather than expected actuals
4Not adjusting pro-rata shares for known upcoming lease changes

Where CapVeri Fits

CapVeri's CAM Estimate Forecaster uses current year actuals as a base, applies growth assumptions by expense category, and projects next year's estimate by tenant. This replaces the manual spreadsheet work of building estimates and flags any estimates that would produce unusually large settlements based on current trajectory.

Need to verify your landlord's CAM charges?

CAMAudit.io runs a 14-rule forensic scan on your reconciliation statement and identifies potential overcharges in minutes.

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Related Resources

/CamreconciliationguideCamreconciliationvsestimateCamreconciliationseason2026guide

Free Tools for This Phase

CamestimateforecasterCambillingerrorestimatorNoiimpactcalculator

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