Texas CAM Reconciliation Compliance Guide for Landlords
Statutory requirements, tenant audit rights, and landlord obligations for commercial CAM reconciliation in Texas.
Primary Statute
Tex. Prop. Code § 93.002–93.013 (Commercial Tenancy)
Key Takeaway for Landlords
In the absence of statutory requirements, your lease IS your compliance framework. Ensure gross-up clauses clearly distinguish variable vs. fixed expenses. With Harris County vacancy above 25%, every gross-up calculation is material.
Reconciliation Timing Requirements
No statutory deadline for CAM reconciliation delivery. Timing governed entirely by lease terms. Industry standard is 90–120 days after fiscal year-end.
Tenant Audit Rights
No statutory audit rights for commercial tenants. Audit rights exist only if granted by the lease. Texas courts enforce lease terms as written.
Required Disclosures
No statutory disclosure requirements for CAM reconciliation statements. Content and format determined by lease agreement.
Penalty Provisions
No statutory penalties specific to CAM reconciliation errors. General contract remedies (breach of lease) apply. No treble damages provision.
Notable Case Law
Court examined anchor tenant CAM expense pass-through provisions. Held that anchor exclusion from denominator must be explicitly stated in lease; ambiguous language construed against landlord.
Gross-up dispute where landlord applied occupancy adjustment to fixed expenses. Court ruled lease limited gross-up to variable operating expenses only.
Regulatory Body
Texas Real Estate Commission (TREC)
Texas CAM Context
Texas is highly landlord-friendly with minimal statutory requirements for commercial CAM. However, Harris County's 26.5% office vacancy rate means gross-up calculations are actively triggered on most leases. The absence of statutory requirements makes lease drafting even more critical — courts enforce lease terms as written with minimal judicial intervention.
Related Resources
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