Commercial Lease

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CAM Charge Profile

Fields

See Commercial How To document 353

 

The CAM (Common Area Maintenance) allows you to pass through to the tenant a percentage of overhead charges incurred by the property. You can enter as many CAM charges as you want, and each can use a different charge ID and a different percentage.

 

The CAM amount is arrived at in the following way:

A percent of the Source Amount is calculated using the % in the CAM profile.

Any amount entered in the Stop field is subtracted from this figure

If that amount exceeds the Cap the amount is reduced to the Cap figure

For example:

You receive bills over the course of 3 months for $3217.32 for roofing which is to be passed on to the tenants. Invoices were paid out of the owner’s ledger.

 

CAM Profile

CAM % - 2.5

Stop - 10

Cap - 50

Schedule - Quarterly

Charge ID - CAM

Account List - contains the account Roofing

 

Scheduled Charges, CAM calculations

Source Amount - 3217.32

total of Roofing account in owner’s ledger for past 3 months

CAM % - 2.5

Pro-rated Share - 80.433

 formula: Source Amount x CAM %

calculations: 2.5% x 3217.32

Stop - 10

Cap - 50

Charge Amount - 70.4333

 formula: pro-rated share - Stop

calculations: 80.4333 - 10

Cap - 50

Net Charge - 50

 Charge Amount is more than Cap, so Cap will be charged

 

A CAM charge is posted to the tenant for $50 and the Next Scheduled date in the CAM profile is advanced 3 months.

 

Reconcile

If you clicked Reconcile in the CAM profile and you have charged the tenant $20 over the past three months either through the Estimated Charges function or the Charge Tenant and marked it an estimated charge, then:

Reconciled - 20

Total Charge - 30

50 - 20

A CAM charge is posted to the tenant for $30 and the Next Scheduled date in the CAM profile is advanced 3 months.