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Annual CAM Estimate Letter Template

The letter landlords send to tenants at the beginning of each lease year setting the new monthly CAM estimate. Often required by the lease at least 30 days before the lease year begins.

Last updated: March 2026

Who This Is For

Landlords who must notify tenants of annual CAM estimate adjustments under lease provisions requiring advance notice.

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What's Included

  • New monthly CAM estimate amount
  • Basis for the estimate (prior year actuals + projected increases)
  • Effective date for new monthly amount
  • Prior year reconciliation reference
  • CAM cap notation (if applicable)

Key Features

Legally neutral, professional language
Placeholder fields for all variable amounts
Companion to the reconciliation statement template
CAP notation section for leases with annual escalation limits

Frequently Asked Questions

When must a landlord send the annual CAM estimate letter?

Most leases require the landlord to send the annual CAM estimate letter at least 30–60 days before the start of the new lease year. The letter sets the new monthly CAM payment amount for the upcoming year. Check the lease's specific notice requirements — some leases allow landlords to continue charging the prior year's estimate until a new letter is sent.

How is the CAM estimate calculated?

The CAM estimate is typically calculated by taking the prior year's actual recoverable expenses, adding a projected increase based on known or expected expense changes (CPI, contract renewals, etc.), and dividing by 12 to get the monthly estimate. The estimate should reflect a reasonable projection of actual expenses to minimize large true-ups.

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